Item 1. Financial Statements

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Item 1. Financial Statements

Huntington Bancshares Incorporated

Consolidated Balance Sheets (Unaudited)


	At June 30,		At December 31,
(dollar amounts in millions)	2025		2024
Assets
Cash and due from banks	$	1,776	$	1,685
Interest-earning deposits with banks	9,171		11,647
Trading account securities	481		53
Available-for-sale securities	28,330		27,273
Held-to-maturity securities	15,965		16,368


Other securities	878		823
Loans held for sale (includes $867 and $652, respectively, measured at fair value)	876		654
Loans and leases (includes $172 and $173, respectively, measured at fair value)	134,960		130,042
Allowance for loan and lease losses	(2,331)		(2,244)
Net loans and leases (1)	132,629		127,798
Bank-owned life insurance	2,808		2,793
Accrued income and other receivables	1,675		2,190
Premises and equipment	1,104		1,066
Goodwill	5,561		5,561
Servicing rights and other intangible assets	647		677
Other assets (1)	5,841		5,642
Total assets	$	207,742	$	204,230
Liabilities and shareholders’ equity
Liabilities
Deposits:
Demand deposits—noninterest-bearing	$	28,656	$	29,345
Interest-bearing	134,724		133,103
Total deposits	163,380		162,448
Short-term borrowings	576		199
Long-term debt (1) (includes $1,014 and $821, respectively, measured at fair value)	17,467		16,374
Other liabilities (1)	5,349		5,427
Total liabilities	186,772		184,448
Commitments and Contingent Liabilities (Note 16)
Shareholders’ Equity
Preferred stock	1,989		1,989
Common stock	15		15
Capital surplus	15,506		15,484
Less treasury shares, at cost	(87)		(86)
Accumulated other comprehensive income (loss)	(2,246)		(2,866)
Retained earnings	5,751		5,204
Total Huntington shareholders’ equity	20,928		19,740
Non-controlling interest	42		42
Total equity	20,970		19,782
Total liabilities and equity	$	207,742	$	204,230
Common shares authorized (par value of $0.01)	2,250,000,000		2,250,000,000

Common shares outstanding	1,458,800,042		1,453,635,809
Treasury shares outstanding	6,972,708		6,984,102
Preferred stock, authorized shares	6,617,808		6,617,808

Preferred shares outstanding	877,500		877,500

(1)Includes VIE balances in net loans and leases, other assets, long-term debt, and other liabilities of $880 million, $246 million, $796 million, and $89 million, respectively, at June 30, 2025, and $1.1 billion, $264 million, $1.0 billion, $109 million, respectively, at December 31, 2024. See Note 15 - “Variable Interest Entities” for additional information.

See Notes to Unaudited Consolidated Financial Statements

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Huntington Bancshares Incorporated
Consolidated Statements of Income (Unaudited)
	Three Months Ended				Six Months Ended
(dollar amounts in millions, except per share data, share count in thousands)	June 30, 2025		June 30, 2024		June 30, 2025		June 30, 2024
Interest and fee income:
Loans and leases	$	1,971	$	1,859	$	3,876	$	3,668
Available-for-sale securities
Taxable	278		322		565		618
Tax-exempt	31		27		65		54
Held-to-maturity securities—taxable	107		93		215		188
Other securities—taxable	12		10		24		19

Other	157		165		300		309
Total interest income	2,556		2,476		5,045		4,856
Interest expense:
Deposits	822		907		1,632		1,764
Short-term borrowings	13		19		27		38

Long-term debt	254		238		493		455

Total interest expense	1,089		1,164		2,152		2,257
Net interest income	1,467		1,312		2,893		2,599
Provision for credit losses	103		100		218		207
Net interest income after provision for credit losses	1,364		1,212		2,675		2,392
Noninterest income:
Payments and cash management revenue	165		154		320		300
Wealth and asset management revenue	102		90		203		178
Customer deposit and loan fees	95		83		181		160
Capital markets and advisory fees	84		73		151		129
Mortgage banking income	28		30		59		61
Leasing revenue	10		19		24		41
Insurance income	19		18		39		37


Net gains (losses) on sales of securities	(58)		—		(58)		—

Other noninterest income	26		24		46		52
Total noninterest income	471		491		965		958
Noninterest expense:
Personnel costs	722		663		1,393		1,302
Outside data processing and other services	182		165		352		331
Equipment	68		62		135		132
Net occupancy	54		51		119		108
Marketing	28		27		57		55
Deposit and other insurance expense	20		25		57		79
Professional services	22		26		44		51
Amortization of intangibles	11		12		22		24
Lease financing equipment depreciation	2		4		6		8

Other noninterest expense	88		82		164		164
Total noninterest expense	1,197		1,117		2,349		2,254
Income before income taxes	638		586		1,291		1,096
Provision for income taxes	96		106		218		192
Income after income taxes	542		480		1,073		904
Income attributable to non-controlling interest	6		6		10		11
Net income attributable to Huntington	536		474		1,063		893
Dividends on preferred shares	27		35		54		71

Net income applicable to common shares	$	509	$	439	$	1,009	$	822
Average common shares—basic	1,457,309		1,451,207		1,455,904		1,449,850
Average common shares—diluted	1,480,996		1,474,259		1,481,541		1,473,797
Per common share:
Net income—basic	$	0.35	$	0.30	$	0.69	$	0.57
Net income—diluted	0.34		0.30		0.68		0.56

See Notes to Unaudited Consolidated Financial Statements

2025 2Q Form 10-Q 41

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Huntington Bancshares Incorporated

Consolidated Statements of Comprehensive Income (Unaudited)


	Three Months Ended				Six Months Ended
(dollar amounts in millions)	June 30, 2025		June 30, 2024		June 30, 2025		June 30, 2024
Net income attributable to Huntington	$	536	$	474	$	1,063	$	893
Other comprehensive income (loss), net of tax:


Unrealized gains (losses) on available-for-sale securities, net of hedges	97		(70)		352		(198)
Net change related to cash flow hedges on loans	83		37		260		(36)
Translation adjustments, net of hedges	6		—		7		(2)
Change in accumulated unrealized losses for pension and other post-retirement obligations	1		1		1		1
Other comprehensive income (loss), net of tax	187		(32)		620		(235)
Comprehensive income attributable to Huntington	723		442		1,683		658
Comprehensive income attributed to non-controlling interest	6		6		10		11
Comprehensive income	$	729	$	448	$	1,693	$	669

See Notes to Unaudited Consolidated Financial Statements

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Huntington Bancshares Incorporated

Consolidated Statements of Changes in Shareholders’ Equity (Unaudited)


(dollar amounts in millions, share amounts in thousands)	Preferred Stock			Common Stock				Capital Surplus		Treasury Stock			AOCI		Retained Earnings		Huntington Shareholders’ Equity		Non-controlling Interest		Total Equity
Amount			Shares		Amount			Shares		Amount
Three months ended June 30, 2025
Balance, beginning of period	$	1,989		1,463,976		$	15	$	15,479	(7,164)	$	(90)	$	(2,433)	$	5,474	$	20,434	$	52	$	20,486
Net income															536		536		6		542
Other comprehensive income, net of tax													187				187				187







Cash dividends declared:
Common ($0.155 per share)															(230)		(230)				(230)
Preferred															(27)		(27)				(27)
Recognition of the fair value of share-based compensation								32									32				32

Other share-based compensation activity				1,797		—		(7)							(2)		(9)				(9)

Other								2		191	3						5		(16)		(11)
Balance, end of period	$	1,989		1,465,773		$	15	$	15,506	(6,973)	$	(87)	$	(2,246)	$	5,751	$	20,928	$	42	$	20,970

Three months ended June 30, 2024
Balance, beginning of period	$	2,394		1,456,668		$	15	$	15,407	(7,414)	$	(91)	$	(2,879)	$	4,476	$	19,322	$	51	$	19,373
Net income															474		474		6		480
Other comprehensive loss, net of tax													(32)				(32)				(32)

Cash dividends declared:
Common ($0.155 per share)															(230)		(230)				(230)
Preferred															(35)		(35)				(35)
Recognition of the fair value of share-based compensation								33									33				33
Other share-based compensation activity				3,088		—		(15)							(3)		(18)				(18)
Other								—		91	1						1		(9)		(8)
Balance, end of period	$	2,394		1,459,756		$	15	$	15,425	(7,323)	$	(90)	$	(2,911)	$	4,682	$	19,515	$	48	$	19,563

See Notes to Unaudited Consolidated Financial Statements

2025 2Q Form 10-Q 43

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(dollar amounts in millions, share amounts in thousands)	Preferred Stock			Common Stock				Capital Surplus		Treasury Stock			AOCI		Retained Earnings		Huntington Shareholders’ Equity		Non-controlling Interest		Total Equity
Amount			Shares		Amount			Shares		Amount
Six months ended June 30, 2025
Balance, beginning of period	$	1,989		1,460,620		$	15	$	15,484	(6,984)	$	(86)	$	(2,866)	$	5,204	$	19,740	$	42	$	19,782

Net income															1,063		1,063		10		1,073
Other comprehensive income, net of tax													620				620				620








Cash dividends declared:
Common ($0.31 per share)															(460)		(460)				(460)
Preferred															(54)		(54)				(54)

Recognition of the fair value of share-based compensation								53									53				53
Other share-based compensation activity				5,153		—		(33)							(2)		(35)				(35)

Other								2		11	(1)				—		1		(10)		(9)
Balance, end of period	$	1,989		1,465,773		$	15	$	15,506	(6,973)	$	(87)	$	(2,246)	$	5,751	$	20,928	$	42	$	20,970

Six months ended June 30, 2024
Balance, beginning of period	$	2,394		1,455,723		$	15	$	15,389	(7,403)	$	(91)	$	(2,676)	$	4,322	$	19,353	$	45	$	19,398

Net income															893		893		11		904
Other comprehensive loss, net of tax													(235)				(235)				(235)








Cash dividends declared:
Common ($0.31 per share)															(458)		(458)				(458)
Preferred															(71)		(71)				(71)

Recognition of the fair value of share-based compensation								53									53				53
Other share-based compensation activity				4,033		—		(17)							(4)		(21)				(21)

Other								—		80	1				—		1		(8)		(7)
Balance, end of period	$	2,394		1,459,756		$	15	$	15,425	(7,323)	$	(90)	$	(2,911)	$	4,682	$	19,515	$	48	$	19,563

See Notes to Unaudited Consolidated Financial Statements

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Huntington Bancshares Incorporated

Consolidated Statements of Cash Flows (Unaudited)


	Six Months Ended
(dollar amounts in millions)	June 30, 2025		June 30, 2024
Operating activities
Net income	$	1,073	$	904
Adjustments to reconcile net income to net cash provided by operating activities:

Provision for credit losses	218		207
Depreciation, amortization, and accretion	397		360
Share-based compensation expense	53		53
Deferred income tax benefit	(173)		(27)
Net gains (losses) on sales of securities	58		—

Net change in:
Trading account securities	(428)		(29)
Loans held for sale	(226)		(190)

Other assets	(210)		(592)
Short-term borrowings	403		10
Other liabilities	(81)		81


Other, net	(17)		2
Net cash provided by operating activities	1,067		779
Investing activities
Change in interest-earning deposits with banks	185		(24)

Proceeds from:
Maturities and calls of available-for-sale securities	2,694		4,677
Maturities and calls of held-to-maturity securities	925		699
Maturities and calls of other securities	65		27
Sales of available-for-sale securities	850		—

Purchases of available-for-sale securities	(3,907)		(7,058)
Purchases of held-to-maturity securities	(515)		—
Purchases of other securities	(120)		(146)

Net proceeds from sales of loans and leases	161		164
Principal payments received under direct finance leases	740		896
Net loan and lease activity, excluding sales and purchases	(5,861)		(3,708)
Purchases of premises and equipment	(108)		(74)
Purchases of loans and leases	(317)		(48)
Net accrued income and other receivables activity	532		100


Other, net	31		41
Net cash used in investing activities	(4,645)		(4,454)
Financing activities
Increase in deposits	932		3,137
Decrease in short-term borrowings	(138)		(709)

Net proceeds from issuance of long-term debt	2,001		5,306
Maturity/redemption of long-term debt	(1,136)		(1,081)
Dividends paid on preferred stock	(54)		(71)
Dividends paid on common stock	(453)		(451)






Other, net	(62)		(39)
Net cash provided by financing activities	1,090		6,092
(Decrease) increase in cash and cash equivalents	(2,488)		2,417
Cash and cash equivalents at beginning of period (1)	12,847		10,129
Cash and cash equivalents at end of period (1)	$	10,359	$	12,546

2025 2Q Form 10-Q 45

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	Six Months Ended
(dollar amounts in millions)	June 30, 2025		June 30, 2024
Supplemental disclosures:
Interest paid	$	2,122	$	2,209
Income taxes paid	159		92

Non-cash activities
Loans transferred to held-for-sale from portfolio	168		164
Loans transferred to portfolio from held-for-sale	11		17

(1)Includes cash and due from banks and interest-earning deposits at the FRB, included within interest-earning deposits with banks on our Unaudited Consolidated Balance Sheets.

See Notes to Unaudited Consolidated Financial Statements

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Huntington Bancshares Incorporated

Notes to Unaudited Consolidated Financial Statements

1. BASIS OF PRESENTATION

The accompanying interim Unaudited Consolidated Financial Statements of Huntington reflect all adjustments consisting of normal recurring accruals which are, in the opinion of management, necessary for a fair statement of the consolidated financial position, the results of operations, and cash flows for the periods presented. These interim Unaudited Consolidated Financial Statements have been prepared according to the rules and regulations of the SEC and, therefore, certain information and footnote disclosures normally included in annual financial statements prepared in accordance with GAAP have been omitted. The Notes to Consolidated Financial Statements appearing in Huntington’s 2024 Annual Report on Form 10-K, which include descriptions of significant accounting policies, as updated by the information contained in this report, should be read in conjunction with these interim financial statements.

In conjunction with applicable accounting standards, all material subsequent events have been either recognized in the interim Unaudited Consolidated Financial Statements or disclosed in the Notes to Unaudited Consolidated Financial Statements. There were no other material subsequent events to disclose for the current period.

2. ACCOUNTING STANDARDS UPDATE

Accounting standards adopted


Standard	Summary of guidance	Effects on financial Statements
ASU 2023-07 - Segment Reporting (Topic 280): Improvement to Reportable Segments	•Requires disclosure of the position and title of the CODM and significant segment expenses that the CODM is regularly provided. •Requires the disclosure of other segment items representing the difference between segment revenue and expense and the profit and loss measure of the segment. •Allows for the CODM to use more than one measure of segment profit and loss, as long as one measure is consistent with GAAP.	•Huntington adopted the standard effective for the year ended December 31, 2024 and the first interim period beginning in 2025. •The adoption did not result in a material impact on Huntington’s Consolidated Financial Statements. •The amendments have been applied retrospectively to all periods presented and segment expense categories are based on the categories identified at adoption. •Refer to Note 17 - “Segment Reporting” of this Quarterly Report on Form 10-Q and Note 24 - “Segment Reporting” of our 2024 Annual Report on Form 10-K for additional disclosure information.

Accounting standards not yet effective


Standard	Summary of guidance	Effects on financial Statements
ASU 2023-09 - Income Taxes (Topic 740): Improvements to Income Tax Disclosures	•Requires a tabular rate reconciliation using both percentages and reporting currency amounts between the reported amount of income tax expense (or benefit) to the amount of statutory federal income tax at current rates for specified categories using specified disaggregation criteria. •Requires disclosure of the amount of net income taxes paid for federal, state, and foreign taxes, including amounts in each jurisdiction where net taxes paid are equal to or greater than a 5% quantitative threshold. •Requires disclosure of pre-tax income disaggregated between domestic and foreign tax jurisdictions, as well as income tax expense disaggregated by federal, state, and foreign jurisdictions.	•Effective for fiscal years beginning after December 15, 2024, with first disclosure additions to be included in the 2025 Annual Report on Form 10-K. •The amendments should be applied on a prospective basis, but retrospective application is permitted. •The adoption is not expected to result in a material impact on Huntington’s Consolidated Financial Statements.

2025 2Q Form 10-Q 47

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3. PENDING ACQUISITION

On July 14, 2025 Huntington announced entry into a definitive merger agreement with Veritex Holdings, Inc. (“Veritex”), a bank holding company headquartered in Dallas, Texas, whereby Veritex will merge with and into Huntington, with Huntington as the surviving entity. Under the terms of the agreement, Huntington will issue 1.95 shares for each outstanding share of Veritex in a 100% stock transaction. As of June 30, 2025, Veritex had $12.5 billion in assets, including $9.5 billion in loans, and $10.4 billion in deposits. The merger is expected to close in the fourth quarter of 2025, subject to satisfaction of closing conditions, including receipt of customary required regulatory approvals and the approval of the definitive merger agreement by the Veritex stockholders.

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4. INVESTMENT SECURITIES AND OTHER SECURITIES

Debt securities purchased in which Huntington has the intent and ability to hold to their maturity are classified as held-to-maturity securities. All other debt and equity securities are classified as either available-for-sale or other securities. The following tables provide amortized cost, fair value, and gross unrealized gains and losses by investment category.


			Unrealized
(dollar amounts in millions)	Amortized Cost (1)(2)		Gross Gains		Gross Losses		Fair Value
At June 30, 2025
Available-for-sale securities:
U.S. Treasury	$	7,351	$	39	$	(6)	$	7,384
Federal agencies:
Residential MBS	11,436		1		(1,596)		9,841
Residential CMO	4,922		—		(354)		4,568
Commercial MBS	2,453		1		(680)		1,774
Other agencies	121		—		(4)		117
Total U.S. Treasury, federal agency, and other agency securities	26,283		41		(2,640)		23,684
Municipal securities	4,205		3		(116)		4,092
Corporate debt	191		—		(19)		172
Asset-backed securities	279		—		(12)		267
Private-label CMO	113		—		(8)		105
Other securities/sovereign debt	10		—		—		10
Total available-for-sale securities	$	31,081	$	44	$	(2,795)	$	28,330

Held-to-maturity securities:
U.S. Treasury	$	2,330	$	14	$	(3)	$	2,341
Federal agencies:
Residential MBS	8,127		—		(1,111)		7,016
Residential CMO	4,088		10		(577)		3,521
Commercial MBS	1,358		—		(206)		1,152
Other agencies	61		—		(3)		58
Total U.S. Treasury, federal agency and other agency securities	15,964		24		(1,900)		14,088
Municipal securities	1		—		—		1
Total held-to-maturity securities	$	15,965	$	24	$	(1,900)	$	14,089

Other securities, at cost:
Non-marketable equity securities:
FRB stock	$	575	$	—	$	—	$	575
FHLB stock	248		—		—		248
Other non-marketable equity securities	24		—		—		24
Other securities, at fair value:
Mutual funds	29		—		—		29
Equity securities	2		—		—		2
Total other securities	$	878	$	—	$	—	$	878

(1)Amortized cost amounts exclude accrued interest receivable, which is recorded within accrued income and other receivables on the Unaudited Consolidated Balance Sheets. At June 30, 2025, accrued interest receivable on AFS securities and HTM securities totaled $82 million and $46 million, respectively.

(2)Excluded from the amortized cost are portfolio level basis adjustments for securities designated in fair value hedges under the portfolio layer method. The basis adjustments totaled $197 million and represent a reduction to the amortized cost of the securities being hedged. The securities being hedged under the portfolio layer method are primarily Residential CMO and Residential MBS securities.

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			Unrealized
(dollar amounts in millions)	Amortized Cost (1)(2)		Gross Gains		Gross Losses		Fair Value
At December 31, 2024
Available-for-sale securities:
U.S. Treasury	$	6,588	$	11	$	(43)	$	6,556
Federal agencies:
Residential MBS	11,988		—		(1,971)		10,017
Residential CMO	3,778		1		(434)		3,345
Commercial MBS	2,519		—		(767)		1,752
Other agencies	135		—		(5)		130
Total U.S. Treasury, federal agency, and other agency securities	25,008		12		(3,220)		21,800
Municipal securities	4,119		1		(132)		3,988
Corporate debt	1,157		—		(102)		1,055
Asset-backed securities	330		—		(19)		311
Private-label CMO	119		—		(10)		109
Other securities/sovereign debt	10		—		—		10
Total available-for-sale securities	$	30,743	$	13	$	(3,483)	$	27,273

Held-to-maturity securities:
U.S. Treasury	$	2,045	$	—	$	(22)	$	2,023
Federal agencies:
Residential MBS	8,533		—		(1,336)		7,197
Residential CMO	4,309		3		(691)		3,621
Commercial MBS	1,407		—		(231)		1,176
Other agencies	73		—		(5)		68
Total U.S. Treasury, federal agency, and other agency securities	16,367		3		(2,285)		14,085
Municipal securities	1		—		—		1
Total held-to-maturity securities	$	16,368	$	3	$	(2,285)	$	14,086

Other securities, at cost:
Non-marketable equity securities:
FRB stock	$	521	$	—	$	—	$	521
FHLB stock	246		—		—		246
Other non-marketable equity securities	25		—		—		25
Other securities, at fair value:
Mutual funds	29		—		—		29
Equity securities	1		1		—		2
Total other securities	$	822	$	1	$	—	$	823

(1)Amortized cost amounts exclude accrued interest receivable, which is recorded within accrued income and other receivables on the Unaudited Consolidated Balance Sheets. At December 31, 2024, accrued interest receivable on AFS securities and HTM securities totaled $89 million and $46 million, respectively.

(2)Excluded from the amortized cost are portfolio level basis adjustments for securities designated in fair value hedges under the portfolio layer method. The basis adjustments totaled $458 million and represent a reduction to the amortized cost of the securities being hedged. The securities being hedged under the portfolio layer method are primarily Residential CMO and Residential MBS securities.

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The following table provides the amortized cost and fair value of securities by contractual maturity. Expected maturities may differ from contractual maturities as issuers may have the right to call or prepay obligations with or without incurring penalties.


	At June 30, 2025				At December 31, 2024
(dollar amounts in millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Available-for-sale securities:
Under 1 year	$	3,805	$	3,799	$	3,620	$	3,624
After 1 year through 5 years	5,896		5,888		5,993		5,844
After 5 years through 10 years	1,813		1,684		1,857		1,732
After 10 years	19,567		16,959		19,273		16,073
Total available-for-sale securities	$	31,081	$	28,330	$	30,743	$	27,273

Held-to-maturity securities:
Under 1 year	$	255	$	255	$	255	$	256
After 1 year through 5 years	2,115		2,124		1,818		1,796
After 5 years through 10 years	59		56		65		60
After 10 years	13,536		11,654		14,230		11,974
Total held-to-maturity securities	$	15,965	$	14,089	$	16,368	$	14,086

The following tables provide detail on investment securities with unrealized losses aggregated by investment category and the length of time the individual securities have been in a continuous loss position.


	Less than 12 Months				Over 12 Months				Total
(dollar amounts in millions)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
At June 30, 2025
Available-for-sale securities:
U.S. Treasury	$	2,583	$	(6)	$	—	$	—	$	2,583	$	(6)
Federal agencies:
Residential MBS	210		(2)		9,515		(1,594)		9,725		(1,596)
Residential CMO	960		(3)		2,740		(351)		3,700		(354)
Commercial MBS	—		—		1,774		(680)		1,774		(680)
Other agencies	25		—		66		(4)		91		(4)
Total U.S. Treasury, federal agency, and other agency securities	3,778		(11)		14,095		(2,629)		17,873		(2,640)
Municipal securities	1,478		(24)		2,225		(92)		3,703		(116)
Corporate debt	—		—		172		(19)		172		(19)
Asset-backed securities	—		—		267		(12)		267		(12)
Private-label CMO	—		—		83		(8)		83		(8)

Total temporarily impaired available-for-sale securities	$	5,256	$	(35)	$	16,842	$	(2,760)	$	22,098	$	(2,795)

Held-to-maturity securities:
U.S. Treasury	$	749	$	(3)	$	—	$	—	$	749	$	(3)
Federal agencies:
Residential MBS	54		(1)		6,922		(1,110)		6,976		(1,111)
Residential CMO	—		—		3,083		(577)		3,083		(577)
Commercial MBS	—		—		1,152		(206)		1,152		(206)
Other agencies	—		—		58		(3)		58		(3)
Total U.S. Treasury, federal agency, and other agency securities	803		(4)		11,215		(1,896)		12,018		(1,900)
Municipal securities	—		—		1		—		1		—
Total temporarily impaired held-to-maturity securities	$	803	$	(4)	$	11,216	$	(1,896)	$	12,019	$	(1,900)

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	Less than 12 Months				Over 12 Months				Total
(dollar amounts in millions)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
At December 31, 2024
Available-for-sale securities:
U.S. Treasury	$	3,153	$	(43)	$	—	$	—	$	3,153	$	(43)
Federal agencies:
Residential MBS	275		(5)		9,676		(1,966)		9,951		(1,971)
Residential CMO	243		(1)		2,802		(433)		3,045		(434)
Commercial MBS	—		—		1,752		(767)		1,752		(767)
Other agencies	21		—		69		(5)		90		(5)
Total U.S. Treasury, federal agency, and other agency securities	3,692		(49)		14,299		(3,171)		17,991		(3,220)
Municipal securities	985		(25)		2,336		(107)		3,321		(132)
Corporate debt	—		—		1,053		(102)		1,053		(102)
Asset-backed securities	49		—		263		(19)		312		(19)
Private-label CMO	—		—		87		(10)		87		(10)

Total temporarily impaired available-for-sale securities	$	4,726	$	(74)	$	18,038	$	(3,409)	$	22,764	$	(3,483)

Held-to-maturity securities:
U.S. Treasury	$	1,581	$	(22)	$	—	$	—	$	1,581	$	(22)
Federal agencies:
Residential MBS	99		(2)		7,097		(1,334)		7,196		(1,336)
Residential CMO	163		(1)		3,152		(690)		3,315		(691)
Commercial MBS	—		—		1,176		(231)		1,176		(231)
Other agencies	—		—		69		(5)		69		(5)
Total U.S. Treasury, federal agency, and other agency securities	1,843		(25)		11,494		(2,260)		13,337		(2,285)
Municipal securities	—		—		1		—		1		—
Total temporarily impaired held-to-maturity securities	$	1,843	$	(25)	$	11,495	$	(2,260)	$	13,338	$	(2,285)

At June 30, 2025 and December 31, 2024, the carrying value of investment securities pledged to secure public and trust deposits, trading account liabilities, U.S. Treasury demand notes, security repurchase agreements, and to support borrowing capacity, totaled $32.9 billion and $37.7 billion, respectively. There were no securities of a single issuer, which were not governmental or government-sponsored, that exceeded 10% of shareholders’ equity at either June 30, 2025 or December 31, 2024. At June 30, 2025, substantially all HTM debt securities are comprised of securities issued by government sponsored entities or are explicitly guaranteed by the U.S. government. In addition, there were no HTM debt securities considered past due at June 30, 2025.

Based on an evaluation of available information including security type, counterparty credit quality, past events, current conditions, and reasonable and supportable forecasts that are relevant to collectability of cash flows, as of June 30, 2025, Huntington has concluded that, except for one municipal bond classified as an AFS debt security for which $2 million of write-downs were recognized during 2024, it expects to receive all contractual cash flows from each security held in its AFS and HTM debt securities portfolio. Huntington recognized a $3 million recovery during the first quarter of 2025 related to one AFS municipal security that had previously been written down. There was no allowance related to securities as of June 30, 2025 or December 31, 2024.

52 Huntington Bancshares Incorporated

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5. LOANS AND LEASES

The following table provides a detailed listing of Huntington’s loan and lease portfolio.


(dollar amounts in millions)	At June 30, 2025		At December 31, 2024


















Commercial loan and lease portfolio:
Commercial and industrial	$	60,723	$	56,809
Commercial real estate	10,698		11,078
Lease financing	5,516		5,454
Total commercial loan and lease portfolio	76,937		73,341
Consumer loan portfolio:
Residential mortgage	24,527		24,242
Automobile	15,382		14,564
Home equity	10,221		10,142
RV and marine	5,907		5,982
Other consumer	1,986		1,771
Total consumer loan portfolio	58,023		56,701
Total loans and leases (1)(2)	134,960		130,042
Allowance for loan and lease losses	(2,331)		(2,244)
Net loans and leases	$	132,629	$	127,798

(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 $503 million and $468 million at June 30, 2025 and December 31, 2024, respectively.

(2)The total amount of accrued interest recorded for loans and leases at June 30, 2025 was $316 million and $245 million of commercial and consumer loan and lease portfolios, respectively, and at December 31, 2024 was $316 million and $235 million of commercial and consumer loan and lease portfolios, respectively. Accrued interest is presented in accrued income and other receivables within the Unaudited Consolidated Balance Sheets.

Lease Financing

The following table presents net investments in lease financing receivables by category.


(dollar amounts in millions)	At June 30, 2025		At December 31, 2024

Lease payments receivable	$	5,215	$	5,189
Estimated residual value of leased assets	954		884
Gross investment in lease financing receivables	6,169		6,073
Deferred origination costs	54		56
Deferred fees, unearned income, and other	(707)		(675)
Total lease financing receivables	$	5,516	$	5,454

The carrying value of residual values guaranteed was $476 million and $517 million as of June 30, 2025 and December 31, 2024, respectively. The future lease rental payments due from customers on direct financing leases at June 30, 2025 totaled $5.2 billion and were due as follows: $656 million in 2025, $961 million in 2026, $947 million in 2027, $975 million in 2028, $840 million in 2029, and $836 million thereafter. Interest income recognized for these types of leases was $92 million and $81 million for the three-month periods ended June 30, 2025 and 2024, respectively. For the six-month periods ended June 30, 2025 and 2024, interest income recognized for these types of leases was $181 million and $160 million, respectively.

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Nonaccrual and Past Due Loans and Leases

The following table presents NALs by loan class.


	At June 30, 2025				At December 31, 2024
(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	$	34	$	489	$	71	$	457
Commercial real estate	87		138		75		118
Lease financing	1		10		—		10
Residential mortgage	—		93		—		83
Automobile	—		5		—		6
Home equity	—		105		—		107
RV and marine	—		2		—		2

Total nonaccrual loans and leases	$	122	$	842	$	146	$	783

The following table presents an aging analysis of loans and leases, by loan class.


	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
At June 30, 2025
Commercial and industrial	$	77	$	53	$	252	$	382	$	60,341	$	—	$	60,723	$	4	(2)
Commercial real estate	1		—		52		53		10,645		—		10,698		—
Lease financing	46		14		18		78		5,438		—		5,516		14
Residential mortgage	248		79		245		572		23,783		172		24,527		189		(3)
Automobile	101		25		12		138		15,244		—		15,382		10
Home equity	59		32		89		180		10,041		—		10,221		18
RV and marine	20		5		3		28		5,879		—		5,907		2
Other consumer	14		6		4		24		1,962		—		1,986		4
Total loans and leases	$	566	$	214	$	675	$	1,455	$	133,333	$	172	$	134,960	$	241
At December 31, 2024
Commercial and industrial	$	96	$	46	$	232	$	374	$	56,435	$	—	$	56,809	$	3	(2)
Commercial real estate	35		—		39		74		11,004		—		11,078		—
Lease financing	56		23		14		93		5,361		—		5,454		11
Residential mortgage	196		98		242		536		23,533		173		24,242		185		(3)
Automobile	117		27		16		160		14,404		—		14,564		12
Home equity	64		32		92		188		9,954		—		10,142		20
RV and marine	26		7		5		38		5,944		—		5,982		4
Other consumer	13		5		4		22		1,749		—		1,771		4
Total loans and leases	$	603	$	238	$	644	$	1,485	$	128,384	$	173	$	130,042	$	239

(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 mortgage loans insured by U.S. government agencies.

Credit Quality Indicators

Huntington assesses the risk in the loan portfolio by utilizing numerous risk characteristics. See Note 4 - “Loans and Leases” to the Consolidated Financial Statements appearing in Huntington’s 2024 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.

54 Huntington Bancshares Incorporated

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The following tables present the amortized cost basis of loans and leases by vintage and internally defined credit quality indicator.


	At June 30, 2025
	Term Loans Amortized Cost Basis by Origination Year												Revolver Total at Amortized Cost Basis		Revolver Total Converted to Term Loans
(dollar amounts in millions)	2025		2024		2023		2022		2021		Prior				Total
Commercial and industrial
Credit Quality Indicator:
Pass	$	10,457	$	11,222	$	6,004	$	5,174	$	2,046	$	2,817	$	19,574	$	9	$	57,303
OLEM	70		248		81		59		11		26		147		—		642
Substandard	358		413		362		321		200		167		957		—		2,778

Total Commercial and industrial	$	10,885	$	11,883	$	6,447	$	5,554	$	2,257	$	3,010	$	20,678	$	9	$	60,723
Commercial real estate
Credit Quality Indicator:
Pass	$	1,118	$	1,327	$	790	$	2,087	$	1,000	$	2,459	$	696	$	—	$	9,477
OLEM	18		—		105		249		119		74		40		—		605
Substandard	81		75		107		137		71		128		17		—		616

Total Commercial real estate	$	1,217	$	1,402	$	1,002	$	2,473	$	1,190	$	2,661	$	753	$	—	$	10,698
Lease financing
Credit Quality Indicator:
Pass	$	675	$	1,831	$	1,298	$	709	$	480	$	454	$	—	$	—	$	5,447
OLEM	3		3		4		2		2		3		—		—		17
Substandard	1		4		12		20		4		11		—		—		52

Total Lease financing	$	679	$	1,838	$	1,314	$	731	$	486	$	468	$	—	$	—	$	5,516
Residential mortgage
Credit Quality Indicator:
750+	$	870	$	1,851	$	2,153	$	3,788	$	5,412	$	5,250	$	—	$	—	$	19,324
650-749	409		622		461		655		698		1,112		—		—		3,957
<650	31		83		77		136		124		623		—		—		1,074

Total Residential mortgage	$	1,310	$	2,556	$	2,691	$	4,579	$	6,234	$	6,985	$	—	$	—	$	24,355
Automobile
Credit Quality Indicator:
750+	$	2,239	$	3,264	$	1,335	$	1,038	$	651	$	241	$	—	$	—	$	8,768
650-749	1,464		2,090		728		509		309		111		—		—		5,211
<650	219		459		250		232		169		74		—		—		1,403

Total Automobile	$	3,922	$	5,813	$	2,313	$	1,779	$	1,129	$	426	$	—	$	—	$	15,382
Home equity
Credit Quality Indicator:
750+	$	92	$	189	$	284	$	350	$	411	$	598	$	4,717	$	231	$	6,872
650-749	34		60		82		68		47		110		2,047		211		2,659
<650	1		5		12		11		5		41		474		141		690

Total Home equity	$	127	$	254	$	378	$	429	$	463	$	749	$	7,238	$	583	$	10,221
RV and marine
Credit Quality Indicator:
750+	$	464	$	814	$	797	$	743	$	649	$	1,036	$	—	$	—	$	4,503
650-749	86		229		238		180		179		300		—		—		1,212
<650	1		17		31		28		37		78		—		—		192

Total RV and marine	$	551	$	1,060	$	1,066	$	951	$	865	$	1,414	$	—	$	—	$	5,907
Other consumer
Credit Quality Indicator:
750+	$	240	$	230	$	74	$	36	$	17	$	53	$	515	$	1	$	1,166
650-749	99		114		39		15		5		10		434		4		720
<650	5		15		10		4		2		1		57		6		100

Total Other consumer	$	344	$	359	$	123	$	55	$	24	$	64	$	1,006	$	11	$	1,986

2025 2Q Form 10-Q 55

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	At December 31, 2024
	Term Loans Amortized Cost Basis by Origination Year												Revolver Total at Amortized Cost Basis		Revolver Total Converted to Term Loans
(dollar amounts in millions)	2024		2023		2022		2021		2020		Prior				Total
Commercial and industrial
Credit Quality Indicator:
Pass	$	16,097	$	7,939	$	6,587	$	2,747	$	1,708	$	1,846	$	16,790	$	4	$	53,718
OLEM	124		80		82		24		7		23		273		—		613
Substandard	445		385		440		209		107		164		690		—		2,440
Doubtful	—		—		2		—		—		—		36		—		38
Total Commercial and industrial	$	16,666	$	8,404	$	7,111	$	2,980	$	1,822	$	2,033	$	17,789	$	4	$	56,809
Commercial real estate
Credit Quality Indicator:
Pass	$	1,415	$	1,010	$	2,754	$	1,380	$	947	$	1,877	$	635	$	—	$	10,018
OLEM	—		78		114		66		2		64		4		—		328
Substandard	218		37		280		52		10		124		11		—		732

Total Commercial real estate	$	1,633	$	1,125	$	3,148	$	1,498	$	959	$	2,065	$	650	$	—	$	11,078
Lease financing
Credit Quality Indicator:
Pass	$	2,100	$	1,610	$	709	$	449	$	349	$	184	$	—	$	—	$	5,401
OLEM	7		2		2		1		1		—		—		—		13
Substandard	1		6		23		2		7		1		—		—		40

Total Lease financing	$	2,108	$	1,618	$	734	$	452	$	357	$	185	$	—	$	—	$	5,454
Residential mortgage
Credit Quality Indicator:
750+	$	1,725	$	2,249	$	3,913	$	5,617	$	3,011	$	2,525	$	—	$	—	$	19,040
650-749	768		542		748		781		423		791		—		—		4,053
<650	55		64		111		110		68		568		—		—		976

Total Residential mortgage	$	2,548	$	2,855	$	4,772	$	6,508	$	3,502	$	3,884	$	—	$	—	$	24,069
Automobile
Credit Quality Indicator:
750+	$	4,091	$	1,663	$	1,343	$	920	$	347	$	113	$	—	$	—	$	8,477
650-749	2,560		981		716		459		159		56		—		—		4,931
<650	336		250		252		205		76		37		—		—		1,156

Total Automobile	$	6,987	$	2,894	$	2,311	$	1,584	$	582	$	206	$	—	$	—	$	14,564
Home equity
Credit Quality Indicator:
750+	$	214	$	323	$	378	$	445	$	466	$	195	$	4,581	$	226	$	6,828
650-749	70		92		74		50		44		78		2,051		214		2,673
<650	2		8		11		6		4		40		431		139		641

Total Home equity	$	286	$	423	$	463	$	501	$	514	$	313	$	7,063	$	579	$	10,142
RV and marine
Credit Quality Indicator:
750+	$	928	$	909	$	816	$	718	$	476	$	704	$	—	$	—	$	4,551
650-749	247		268		201		198		123		226		—		—		1,263
<650	7		23		24		35		23		56		—		—		168

Total RV and marine	$	1,182	$	1,200	$	1,041	$	951	$	622	$	986	$	—	$	—	$	5,982
Other consumer
Credit Quality Indicator:
750+	$	321	$	97	$	48	$	22	$	10	$	49	$	467	$	—	$	1,014
650-749	148		55		21		8		2		9		423		7		673
<650	9		10		5		2		1		1		48		8		84

Total Other consumer	$	478	$	162	$	74	$	32	$	13	$	59	$	938	$	15	$	1,771

56 Huntington Bancshares Incorporated

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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)	2025		2024		2023		2022		2021		Prior				Total
Three months ended June 30, 2025
Commercial and industrial	$	2	$	5	$	16	$	10	$	2	$	4	$	9	$	1	$	49
Commercial real estate	2		—		—		—		—		—		1		—		3
Lease financing	—		—		—		1		1		2		—		—		4
Residential mortgage	—		—		—		—		—		1		—		—		1
Automobile	—		5		4		3		3		1		—		—		16
Home equity	—		—		—		—		—		—		—		1		1
RV and marine	—		1		2		2		1		3		—		—		9
Other consumer	3		5		4		2		1		3		—		10		28
Total	$	7	$	16	$	26	$	18	$	8	$	14	$	10	$	12	$	111
Six months ended June 30, 2025
Commercial and industrial	$	2	$	11	$	24	$	43	$	5	$	13	$	18	$	2	$	118
Commercial real estate	2		—		—		—		1		—		1		—		4
Lease financing	—		1		1		3		1		2		—		—		8
Residential mortgage	—		—		—		—		—		2		—		—		2
Automobile	—		10		9		9		6		2		—		—		36
Home equity	—		—		—		—		—		—		1		2		3
RV and marine	—		1		4		3		3		7		—		—		18
Other consumer	4		11		9		4		2		6		—		19		55
Total	$	8	$	34	$	47	$	62	$	18	$	32	$	20	$	23	$	244

	Term Loans Gross Charge-offs by Origination Year												Revolver Gross Charge-offs		Revolver Converted to Term Loans Gross Charge-offs
(dollar amounts in millions)	2024		2023		2022		2021		2020		Prior				Total
Three months ended June 30, 2024
Commercial and industrial	$	—	$	5	$	19	$	7	$	—	$	2	$	10	$	—	$	43
Commercial real estate	9		1		21		1		—		18		—		—		50
Lease financing	—		1		1		—		—		—		—		—		2
Residential mortgage	—		—		—		—		—		1		—		—		1
Automobile	—		4		4		3		1		2		—		—		14
Home equity	—		—		—		—		—		—		1		1		2
RV and marine	—		—		1		1		1		3		—		—		6
Other consumer	2		6		3		2		1		4		—		9		27
Total	$	11	$	17	$	49	$	14	$	3	$	30	$	11	$	10	$	145
Six months ended June 30, 2024
Commercial and industrial	$	—	$	10	$	30	$	22	$	11	$	4	$	20	$	1	$	98
Commercial real estate	9		2		30		2		—		24		—		—		67
Lease financing	—		1		1		1		—		1		—		—		4
Residential mortgage	—		—		—		—		—		2		—		—		2
Automobile	—		8		9		7		3		2		—		—		29
Home equity	—		—		—		—		—		—		1		3		4
RV and marine	—		1		2		3		2		6		—		—		14
Other consumer	3		13		8		4		2		7		—		18		55
Total	$	12	$	35	$	80	$	39	$	18	$	46	$	21	$	22	$	273

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Modifications to Debtors Experiencing Financial Difficulty

See Note 4 - “Loans and Leases” to the Consolidated Financial Statements appearing in Huntington’s 2024 Annual Report on Form 10-K for a description of reported modification types and the impact on credit quality of borrowers experiencing financial difficulty.

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		Payment deferral		Combo - interest rate reduction and term extension		Total		% of total loan class (1)
Three months ended June 30, 2025
Commercial and industrial	$	44	$	158	$	—	$	1	$	203	0.33	%
Commercial real estate	—		69		—		—		69		0.64
Residential mortgage	—		12		3		2		17		0.07
Automobile	—		1		—		—		1		0.01
Home equity	—		2		—		2		4		0.04


Total loans to borrowers experiencing financial difficulty to which modifications were made	$	44	$	242	$	3	$	5	$	294	0.22	%
Three months ended June 30, 2024
Commercial and industrial	$	34	$	116	$	—	$	41	$	191	0.37	%
Commercial real estate	—		184		—		14		198		1.66
Residential mortgage	—		15		1		1		17		0.07
Automobile	—		4		—		—		4		0.03
Home equity	—		2		—		2		4		0.04

Other consumer	1		—		—		—		1		0.06
Total loans to borrowers experiencing financial difficulty to which modifications were made	$	35	$	321	$	1	$	58	$	415	0.33	%
Six months ended June 30, 2025
Commercial and industrial	$	91	$	289	$	—	$	5	$	385	0.63	%
Commercial real estate	—		140		—		—		140		1.31
Residential mortgage	—		24		11		3		38		0.15
Automobile	—		3		—		—		3		0.02
Home equity	—		4		—		4		8		0.08

Other consumer	1		—		—		—		1		0.05
Total loans to borrowers experiencing financial difficulty in which modifications were made	$	92	$	460	$	11	$	12	$	575	0.43	%
Six months ended June 30, 2024
Commercial and industrial	$	84	$	144	$	—	$	42	$	270	0.52	%
Commercial real estate	—		198		—		14		212		1.78
Residential mortgage	—		23		4		1		28		0.12
Automobile	—		7		—		1		8		0.06
Home equity	—		3		—		6		9		0.09

Other consumer	1		—		—		—		1		0.06
Total loans to borrowers experiencing financial difficulty in which modifications were made	$	85	$	375	$	4	$	64	$	528	0.42	%

(1)Represents the amortized cost of loans modified during the reporting period as a percentage of the period-end loan balance by class.

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The following table describes the financial effect of the modification made to borrowers experiencing financial difficulty.


	Interest Rate Reduction (1)				Term Extension (1)
	Weighted-average contractual interest rate				Weighted-average years added to the life
	From		To
Three months ended June 30, 2025
Commercial and industrial	8.80	%	6.38	%	0.6
Commercial real estate					0.8
Residential mortgage					7.1




Three months ended June 30, 2024
Commercial and industrial	8.46		8.21		0.7
Commercial real estate	7.98		7.85		0.4
Residential mortgage					7.4




Six months ended June 30, 2025
Commercial and industrial	8.32	%	7.00	%	0.9
Commercial real estate					1.0
Residential mortgage					6.5




Six months ended June 30, 2024
Commercial and industrial	8.40		7.57		0.8
Commercial real estate	7.98		7.85		0.4
Residential mortgage					7.6

(1) Certain disclosures related to financial effects of modifications do not include those deemed to be immaterial.

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The performance of loans made to borrowers experiencing financial difficulty to which modifications were made is closely monitored to understand the effectiveness of modification efforts. Loans are considered to be in payment default at 90 or more days past due. The following table depicts the performance of loans that have been modified during the identified period.


	Past Due
(dollar amounts in millions)	30-59 Days		60-89 Days		90 or more days		Total		Current		Total
At June 30, 2025
Commercial and industrial	$	2	$	1	$	5	$	8	$	534	$	542
Commercial real estate	—		—		23		23		211		234
Residential mortgage	11		6		17		34		35		69
Automobile	1		—		—		1		7		8
Home equity	1		1		1		3		12		15
RV and marine	—		—		—		—		1		1
Other consumer	—		—		—		—		2		2
Total loans to borrowers experiencing financial difficulty to which modifications were made in the twelve months ended June 30, 2025	$	15	$	8	$	46	$	69	$	802	$	871
At June 30, 2024
Commercial and industrial	$	16	$	1	$	7	$	24	$	396	$	420
Commercial real estate	—		—		4		4		244		248
Residential mortgage	9		6		8		23		29		52
Automobile	2		1		—		3		12		15
Home equity	1		1		2		4		11		15
RV and marine	—		—		—		—		1		1
Other consumer	—		—		—		—		2		2

Total loans to borrowers experiencing financial difficulty to which modifications were made in the twelve months ended June 30, 2024	$	28	$	9	$	21	$	58	$	695	$	753

Pledged Loans

The Bank has access to secured borrowings from the Federal Reserve’s discount window and advances from the FHLB. As of June 30, 2025 and December 31, 2024, loans and leases totaling $108.3 billion and $105.4 billion, respectively, were pledged to the FRB and FHLB for access to these contingent funding sources.

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6. ALLOWANCE FOR CREDIT LOSSES

The following table presents ACL activity by portfolio segment.


(dollar amounts in millions)	Commercial		Consumer		Total
Three months ended June 30, 2025
ALLL balance, beginning of period	$	1,520	$	743	$	2,263

Loan and lease charge-offs	(56)		(55)		(111)
Recoveries of loans and leases previously charged-off	25		20		45
Provision for loan and lease losses	59		75		134


ALLL balance, end of period	$	1,548	$	783	$	2,331
AULC balance, beginning of period	$	158	$	57	$	215

Provision (benefit) for unfunded lending commitments	(34)		3		(31)


AULC balance, end of period	$	124	$	60	$	184
ACL balance, end of period	$	1,672	$	843	$	2,515
Three months ended June 30, 2024
ALLL balance, beginning of period	$	1,589	$	691	$	2,280

Loan and lease charge-offs	(95)		(50)		(145)
Recoveries of loans and leases previously charged-off	38		17		55
Provision for loan and lease losses	55		59		114


ALLL balance, end of period	$	1,587	$	717	$	2,304
AULC balance, beginning of period	$	69	$	66	$	135

Provision (benefit) for unfunded lending commitments	(5)		(11)		(16)


AULC balance, end of period	$	64	$	55	$	119
ACL balance, end of period	$	1,651	$	772	$	2,423
Six months ended June 30, 2025
ALLL balance, beginning of period	$	1,484	$	760	$	2,244
Loan and lease charge-offs	(130)		(114)		(244)
Recoveries of loans and leases previously charged-off	55		37		92
Provision for loan and lease losses	139		100		239
ALLL balance, end of period	$	1,548	$	783	$	2,331
AULC balance, beginning of period	$	144	$	58	$	202
Provision (benefit) for unfunded lending commitments	(20)		2		(18)
AULC balance, end of period	$	124	$	60	$	184
ACL balance, end of period	$	1,672	$	843	$	2,515
Six months ended June 30, 2024
ALLL balance, beginning of period	$	1,563	$	692	$	2,255
Loan and lease charge-offs	(169)		(104)		(273)
Recoveries of loans and leases previously charged-off	57		34		91
Provision for loan and lease losses	136		95		231
ALLL balance, end of period	$	1,587	$	717	$	2,304
AULC balance, beginning of period	$	66	$	79	$	145
Provision (benefit) for unfunded lending commitments	(2)		(24)		(26)
AULC balance, end of period	$	64	$	55	$	119
ACL balance, end of period	$	1,651	$	772	$	2,423

At June 30, 2025, the ACL was $2.5 billion, a $69 million increase compared to December 31, 2024. The increase in the ACL was driven by loan and lease growth, partially offset by a modest reduction in overall coverage ratios. The ACL coverage ratio at June 30, 2025 is reflective of the current macro-economic forecast and changes in various risk profiles intended to capture uncertainty not addressed within the quantitative reserve.

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The commercial ACL was $1.7 billion at June 30, 2025, a $44 million increase compared to December 31, 2024, with the increase primarily due to loan growth. The consumer ACL was $843 million at June 30, 2025, a $25 million increase compared to December 31, 2024, with the increase primarily due to loan growth.

The baseline economic scenario used in the June 30, 2025 ACL determination assumes the imposition of tariffs impacts global trade and weakens the U.S. economy, with weak near-term GDP growth and increasing unemployment. The unemployment rate is forecasted to increase to 4.4% by the fourth quarter of 2025, continuing to increase to 4.9% through the end of 2026. The Federal Reserve is projected to restart rate cuts beginning in the second half of 2025 and into 2026, until reaching a federal funds rate of 3% by the third quarter of 2026. Inflation starts out at 3.8%, with improvement expected through the remainder of 2025 and into 2026, before ending 2026 at 1.8%. GDP starts out at 0.4%, with improvement through the end of 2026, ending at 1.9%.

The economic scenarios used included elevated levels of economic uncertainty, such as the impact of specific challenges in the commercial real estate Industry, recent inflation levels, the impacts of U.S. trade policies, the U.S. labor market, the expected path of interest rate changes by the Federal Reserve, and the impact of significant conflicts on-going around the world. Given the uncertainty associated with key economic scenario assumptions, the June 30, 2025 ACL included a general reserve that consists of various risk profile components to address uncertainty not measured within the quantitative transaction reserve.

7. MORTGAGE LOAN SALES AND SERVICING RIGHTS

Residential Mortgage Portfolio

The following table summarizes activity relating to residential mortgage loans sold with servicing retained.


	Three Months Ended				Six Months Ended
(dollar amounts in millions)	June 30, 2025		June 30, 2024		June 30, 2025		June 30, 2024
Residential mortgage loans sold with servicing retained	$	1,168	$	983	$	2,177	$	1,794
Pretax gains resulting from above loan sales (1)	23		19		42		32
Total servicing, late, and other ancillary fees (1)	26		25		53		51

(1)Included in mortgage banking income.

The following table summarizes the changes in MSRs recorded using the fair value method.


	Three Months Ended				Six Months Ended
(dollar amounts in millions)	June 30, 2025		June 30, 2024		June 30, 2025		June 30, 2024
Fair value, beginning of period	$	564	$	534	$	573	$	515


New servicing assets created	20		11		40		21
Change in fair value during the period due to:
Time decay (1)	(7)		(7)		(14)		(13)
Payoffs (2)	(10)		(7)		(17)		(12)
Changes in valuation inputs or assumptions (3)	—		12		(15)		32
Fair value, end of period	$	567	$	543	$	567	$	543
Related loans serviced for third parties, unpaid principal balance, end of period	$	33,925	$	33,404	$	33,925	$	33,404

(1)Represents decrease in value due to passage of time, including the impact from both regularly scheduled principal payments and partial loan paydowns.

(2)Represents decrease in value associated with loans that paid off during the period.

(3)Represents change in value resulting primarily from market-driven changes in interest rates.

The following table summarizes key assumptions and the sensitivity of the MSR value to changes in these assumptions.


	At June 30, 2025							At December 31, 2024
				Decline in fair value due to							Decline in fair value due to
(dollar amounts in millions)	Actual			10% adverse change		20% adverse change		Actual			10% adverse change		20% adverse change
Constant prepayment rate (annualized)	8.31	%		$	(16)	$	(30)	7.54	%		$	(14)	$	(28)
Spread over forward interest rate swap rates	566		bps	(13)		(26)		568		bps	(13)		(26)

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8. BORROWINGS

Borrowings with original maturities of one year or less are classified as short-term and were comprised of the following.


(dollar amounts in millions)	At June 30, 2025		At December 31, 2024
Securities sold under agreements to repurchase	$	131	$	142


Other borrowings	445		57
Total short-term borrowings	$	576	$	199

The carrying value of assets pledged as collateral against repurchase agreements totaled $219 million and $224 million as of June 30, 2025 and December 31, 2024, respectively. Assets pledged as collateral are reported in available-for-sale securities and held-to-maturity securities on the Unaudited Consolidated Balance Sheets. The repurchase agreements have maturities within 60 days. No amounts have been offset against the agreements.

The following table summarizes the composition of Huntington’s long-term debt.


(dollar amounts in millions)	At June 30, 2025		At December 31, 2024
The Parent Company:
Senior Notes	$	5,503	$	5,836





Subordinated Notes	1,370		1,341







Total notes issued by the Parent Company	6,873		7,177
The Bank:
Senior Notes	3,185		1,654











Subordinated Notes	391		515


Total notes issued by the Bank	3,576		2,169
FHLB Advances	4,715		4,696

Auto Loan Securitization Trust (1)	796		1,023
Credit Linked Notes (2)	1,014		821
Other	493		488





Total long-term debt	$	17,467	$	16,374

(1) Represents secured borrowings collateralized by auto loans with a weighted average rate of 5.26% due through 2029. See Note 15- “Variable Interest Entities” for additional information.

(2) As of June 30, 2025, the weighted average contractual interest rate on the CLNs was 6.02%. Huntington has elected the fair value option for these notes. To the extent losses exceed certain thresholds, the principal and interest payable on the notes may be reduced by a portion of the Company's aggregate net losses on the reference pool of loans, with losses allocated to note classes in reverse order of payment priority.

During the first quarter of 2025, the Bank issued $1.0 billion of fixed-to-floating rate senior notes due April 12, 2028. These notes bear an initial fixed rate of 4.871% until April 12, 2027, at which time they will reset to a floating rate equal to a benchmark rate based on the Compounded SOFR Index Rate plus 72.6 basis points. The Bank also issued $500 million of floating interest rate senior notes due April 12, 2028, which bear a floating rate equal to a benchmark rate based on the Compounded SOFR Index Rate plus 72 basis points.

During the first quarter of 2025, the Bank completed a CLN transaction whereby it issued $415 million of unsecured credit linked notes to third-party investors. There are four classes of notes, each maturing in March 2033. One note class bears interest at a fixed rate of 4.957% and the remaining three note classes bear interest at SOFR plus a spread rate that ranges from 2.25% to 7.15% (weighted average spread of 4.28%). These notes transfer a portion of the risk of losses to third-party investors on an initial $3.5 billion reference pool of Huntington’s auto-secured loans.

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9. OTHER COMPREHENSIVE INCOME

The following table summarizes the components of Huntington’s OCI.


(dollar amounts in millions)	Pretax		Tax (expense) benefit		After-tax
Three months ended June 30, 2025

Unrealized gains on available-for-sale securities arising during the period, net of hedges	$	65	$	(17)	$	48
Reclassification adjustment for realized net losses included in net income	65		(16)		49
Total unrealized gains on available-for-sale securities, net of hedges	130		(33)		97
Unrealized gains on cash flow hedges during the period	99		(24)		75
Reclassification adjustment for cash flow hedges included in net income	11		(3)		8
Net change related to cash flow hedges on loans	110		(27)		83
Translation adjustments, net of hedges (1)	8		(2)		6
Change in accumulated unrealized gains for pension and other post-retirement obligations	1		—		1

Other comprehensive income	$	249	$	(62)	$	187
Three months ended June 30, 2024

Unrealized losses on available-for-sale securities during the period, net of hedges	$	(93)	$	21	$	(72)
Reclassification adjustment for realized net losses included in net income	2		—		2
Total unrealized losses on available-for-sale securities, net of hedges	(91)		21		(70)


Unrealized losses on cash flow hedges during the period	(20)		5		(15)
Reclassification adjustment for cash flow hedges included in net income	68		(16)		52
Net change related to cash flow hedges on loans	48		(11)		37

Change in accumulated unrealized gains for pension and other post-retirement obligations	1		—		1
Other comprehensive loss	$	(42)	$	10	$	(32)
Six months ended June 30, 2025

Unrealized gains on available-for-sale securities arising during the period, net of hedges	$	394	$	(93)	$	301
Reclassification adjustment for realized net losses included in net income	67		(16)		51
Total unrealized gains on available-for-sale securities, net of hedges	461		(109)		352
Unrealized gains on cash flow hedges during the period	301		(71)		230
Reclassification adjustment for cash flow hedges included in net income	39		(9)		30
Net change related to cash flow hedges on loans	340		(80)		260
Translation adjustments, net of hedges (1)	9		(2)		7
Change in accumulated unrealized gains for pension and other post-retirement obligations	1		—		1
Other comprehensive income	$	811	$	(191)	$	620
Six months ended June 30, 2024

Unrealized losses on available-for-sale securities arising during the period, net of hedges	$	(263)	$	61	$	(202)
Reclassification adjustment for realized net losses included in net income	5		(1)		4
Total unrealized losses on available-for-sale securities, net of hedges	(258)		60		(198)
Unrealized losses on cash flow hedges during the period	(181)		42		(139)
Reclassification adjustment for cash flow hedges included in net income	135		(32)		103
Net change related to cash flow hedges on loans	(46)		10		(36)
Translation adjustments, net of hedges (1)	(2)		—		(2)
Change in accumulated unrealized gains for pension and other post-retirement obligations	1		—		1
Other comprehensive loss	$	(305)	$	70	$	(235)

(1)A portion of foreign investments are deemed to be permanent in nature and, therefore, Huntington does not provide for taxes on this portion of foreign currency translation adjustments.

64 Huntington Bancshares Incorporated

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The following table summarizes the activity in AOCI.


(dollar amounts in millions)	Unrealized gains (losses) on available-for-sale securities, net of hedges (1)		Net change related to cash flow hedges on loans		Translation adjustments, net of hedges		Unrealized losses for pension and other post-retirement obligations		Total
Three months ended June 30, 2025
Balance, beginning of period	$	(2,110)	$	(90)	$	(11)	$	(222)	$	(2,433)

Other comprehensive income before reclassifications	48		75		6		1		130
Amounts reclassified from AOCI to earnings	49		8		—		—		57
Period change	97		83		6		1		187
Balance, end of period	$	(2,013)	$	(7)	$	(5)	$	(221)	$	(2,246)

Three months ended June 30, 2024
Balance, beginning of period	$	(2,222)	$	(436)	$	(8)	$	(213)	$	(2,879)

Other comprehensive loss before reclassifications	(72)		(15)		—		—		(87)
Amounts reclassified from AOCI to earnings	2		52		—		1		55
Period change	(70)		37		—		1		(32)

Balance, end of period	$	(2,292)	$	(399)	$	(8)	$	(212)	$	(2,911)
Six months ended June 30, 2025
Balance, beginning of period	$	(2,365)	$	(267)	$	(12)	$	(222)	$	(2,866)
Other comprehensive income before reclassifications	301		230		7		1		539
Amounts reclassified from AOCI to earnings	51		30		—		—		81
Period change	352		260		7		1		620
Balance, end of period	$	(2,013)	$	(7)	$	(5)	$	(221)	$	(2,246)
Six months ended June 30, 2024
Balance, beginning of period	$	(2,094)	$	(363)	$	(6)	$	(213)	$	(2,676)
Other comprehensive loss before reclassifications	(202)		(139)		(2)		—		(343)
Amounts reclassified from AOCI to earnings	4		103		—		1		108
Period change	(198)		(36)		(2)		1		(235)
Balance, end of period	$	(2,292)	$	(399)	$	(8)	$	(212)	$	(2,911)

(1)AOCI amounts at June 30, 2025 and June 30, 2024 include $47 million and $54 million, respectively, of net unrealized losses (after-tax) on securities transferred from the AFS securities portfolio to the HTM securities portfolio. The net unrealized losses will be recognized in earnings over the remaining life of the security using the effective interest method.

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10. SHAREHOLDERS' EQUITY

Preferred Stock

The following is a summary of Huntington’s non-cumulative, non-voting, perpetual preferred stock outstanding.



(dollar amounts in millions)	Issuance Date	Shares Outstanding	Dividend Rate		Earliest Redemption Date (1)	Carrying Amount
Series			At June 30, 2025		At December 31, 2024
Series B (2)	12/28/2011	35,500	Variable (3)		1/15/2017	$	23	$	23




Series F (4)	5/27/2020	5,000	5.625	%	7/15/2030	494		494
Series G (4)	8/3/2020	5,000	4.45		10/15/2027	494		494
Series H (2)	2/2/2021	500,000	4.50		4/15/2026	486		486
Series I (5)	6/9/2021	7,000	5.70		12/01/2022	175		175
Series J (2)	3/6/2023	325,000	6.875		4/15/2028	317		317
Total		877,500				$	1,989	$	1,989

(1) Redeemable at Huntington’s option on the date stated or on a quarterly basis thereafter.

(2) Liquidation value and redemption price per share of $1,000, plus any declared and unpaid dividends.

(3) Dividend rate converted to 3-month CME Term SOFR + 26 bps spread adjustment + 270 bps.

(4) Liquidation value and redemption price per share of $100,000, plus any declared and unpaid dividends.

(5) Liquidation value and redemption price per share of $25,000, plus any declared and unpaid dividends.

The following table presents the dividends declared for each series of Preferred shares.


		Three Months Ended											Six Months Ended
(amounts in millions, except per share data)		June 30, 2025						June 30, 2024					June 30, 2025					June 30, 2024
	Cash Dividend Declared Per Share						Cash Dividend Declared Per Share					Cash Dividend Declared Per Share					Cash Dividend Declared Per Share
Preferred Series				Amount				Amount ($)				Amount			Amount ($)
Series B		$	18.04		$	1		$	20.73	$	—		$	36.20	$	2		$	41.42	$	1


Series E (1)								2,141.07		9								4,254.97		17
Series F		1,406.25			8			1,406.25		7			2,812.50		14			2,812.50		14
Series G		1,112.50			5			1,112.50		5			2,225.00		11			2,225.00		11
Series H		11.25			5			11.25		6			22.50		11			22.50		12
Series I		356.25			3			356.25		3			712.50		5			712.50		5
Series J		17.19			5			17.19		5			34.38		11			34.38		11
Total					$	27				$	35				$	54				$	71

(1) During the fourth quarter of 2024, all remaining $405 million of outstanding Series E Preferred Stock, par value of $0.01 per share, was redeemed.

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11. EARNINGS PER SHARE

Basic earnings per share is the amount of earnings (adjusted for preferred stock dividends and the impact of preferred stock repurchases and redemptions) available to each share of common stock outstanding during the reporting period. Diluted earnings per share is the amount of earnings available to each share of common stock outstanding during the reporting period adjusted to include the effect of potentially dilutive common shares. Potentially dilutive common shares include incremental shares issued for stock options, restricted stock units, performance share units, and shares held in deferred compensation plans. Potentially dilutive common shares are excluded from the computation of diluted earnings per share in periods in which the effect would be antidilutive.

The following table shows the calculation of basic and diluted earnings per share.


	Three Months Ended				Six Months Ended
(dollar amounts in millions, except per share data, share count in thousands)	June 30, 2025		June 30, 2024		June 30, 2025		June 30, 2024
Basic earnings per common share:
Net income attributable to Huntington	$	536	$	474	$	1,063	$	893
Dividends on preferred shares	27		35		54		71

Net income available to common shareholders	$	509	$	439	$	1,009	$	822
Average common shares issued and outstanding	1,457,309		1,451,207		1,455,904		1,449,850
Basic earnings per common share	$	0.35	$	0.30	$	0.69	$	0.57
Diluted earnings per common share:




Average dilutive potential common shares:
Stock options, restricted stock units, and performance share units	16,587		15,407		18,567		16,401
Shares held in deferred compensation plans	7,100		7,645		7,070		7,546


Average dilutive potential common shares	23,687		23,052		25,637		23,947
Total diluted average common shares issued and outstanding	1,480,996		1,474,259		1,481,541		1,473,797
Diluted earnings per common share	$	0.34	$	0.30	$	0.68	$	0.56
Anti-dilutive awards (1)	7,135		7,319		4,750		8,380

(1)Reflects the total number of shares related to outstanding options that have been excluded from the computation of diluted earnings per share because the impact would have been anti-dilutive.

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12. REVENUE FROM CONTRACTS WITH CUSTOMERS

Revenue is segregated based on the nature of the product and services offered as part of contractual arrangements. Certain sources of revenue are recognized within interest or fee income and are outside of the scope of ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”). Other sources of revenue fall within the scope of ASC 606 and are generally recognized within noninterest income. The following tables present total noninterest income disaggregated by operating segment and segregated between revenue with contracts with customers within the scope of ASC 606 and revenue within the scope of other GAAP topics.


(dollar amounts in millions)	Consumer & Regional Banking		Commercial Banking		Treasury / Other		Huntington Consolidated
Major Revenue Streams
Three months ended June 30, 2025
Payments and cash management revenue	$	117	$	33	$	—	$	150
Wealth and asset management revenue	98		4		—		102
Customer deposit and loan fees	58		4		—		62
Capital markets and advisory fees	2		39		—		41
Leasing revenue	—		3		—		3
Insurance income	19		—		—		19
Other noninterest income	1		1		(2)		—
Net revenue from contracts with customers	295		84		(2)		377
Noninterest income within the scope of other GAAP topics	44		93		(43)		94
Total noninterest income	$	339	$	177	$	(45)	$	471
Three months ended June 30, 2024
Payments and cash management revenue	$	114	$	28	$	—	$	142
Wealth and asset management revenue	88		2		—		90
Customer deposit and loan fees	53		3		—		56
Capital markets and advisory fees	7		36		—		43
Leasing revenue	—		10		—		10
Insurance income	16		2		—		18
Other noninterest income	2		—		(1)		1
Net revenue from contracts with customers	280		81		(1)		360
Noninterest income within the scope of other GAAP topics	42		83		6		131
Total noninterest income	$	322	$	164	$	5	$	491

68 Huntington Bancshares Incorporated

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(dollar amounts in millions)	Consumer & Regional Banking		Commercial Banking		Treasury / Other		Huntington Consolidated
Major Revenue Streams
Six Months Ended June 30, 2025
Payments and cash management revenue	$	225	$	65	$	—	$	290
Wealth and asset management revenue	193		10		—		203
Customer deposit and loan fees	110		6		—		116
Capital markets and advisory fees	6		65		—		71
Leasing revenue	1		6		—		7
Insurance income	36		3		—		39
Other noninterest income	2		2		(2)		2
Net revenue from contracts with customers	573		157		(2)		728
Noninterest income within the scope of other GAAP topics	93		182		(38)		237
Total noninterest income	$	666	$	339	$	(40)	$	965
Six Months Ended June 30, 2024
Payments and cash management revenue	$	221	$	55	$	—	$	276
Wealth and asset management revenue	173		5		—		178
Customer deposit and loan fees	103		7		—		110
Capital markets and advisory fees	11		61		—		72
Leasing revenue	1		19		—		20
Insurance income	32		5		—		37
Other noninterest income	4		—		(1)		3
Net revenue from contracts with customers	545		152		(1)		696
Noninterest income within the scope of other GAAP topics	85		157		20		262
Total noninterest income	$	630	$	309	$	19	$	958

Huntington generally provides services for customers in which it acts as principal. Payment terms and conditions vary amongst services and customers, and thus impact the timing and amount of revenue recognition. Some fees may be paid before any service is rendered and accordingly, such fees are deferred until the obligations pertaining to those fees are satisfied. Most Huntington contracts with customers are cancelable by either party without penalty or they are short-term in nature, with a contract duration of less than one year. Accordingly, most revenue deferred for the reporting period ended June 30, 2025 is expected to be earned within one year. Huntington does not have significant balances of contract assets or contract liabilities and any change in those balances during the reporting period ended June 30, 2025 was determined to be immaterial.

13. FAIR VALUES OF ASSETS AND LIABILITIES

See Note 18 - “Fair Value of Assets and Liabilities” to the Consolidated Financial Statements appearing in Huntington’s 2024 Annual Report on Form 10-K for a description of the valuation methodologies used for instruments measured at fair value. Assets and liabilities measured at fair value rarely transfer between Level 1 and Level 2 measurements. There were no such transfers during the three-month and six-month periods ended June 30, 2025 and 2024.

Assets and Liabilities measured at fair value on a recurring basis

The following tables present our assets and liabilities measured at fair value on a recurring basis, including instruments we have elected the fair value option.

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	Fair Value Measurements at Reporting Date Using						Netting Adjustments (1)		Total
(dollar amounts in millions)	Level 1		Level 2		Level 3
At June 30, 2025
Assets
Trading account securities:
U.S. Treasury securities	$	368	$	—	$	—	$	—	$	368
Other trading account securities	—		113		—		—		113
Total trading account securities	368		113		—		—		481
Available-for-sale securities:
U.S. Treasury securities	7,384		—		—		—		7,384
Residential MBS	—		9,841		—		—		9,841
Residential CMO	—		4,568		—		—		4,568
Commercial MBS	—		1,774		—		—		1,774
Other agencies	—		117		—		—		117
Municipal securities	—		25		4,067		—		4,092
Corporate debt	—		172		—		—		172
Asset-backed securities	—		229		38		—		267
Private-label CMO	—		84		21		—		105
Other securities/sovereign debt	—		10		—		—		10
Total available-for-sale securities	7,384		16,820		4,126		—		28,330
Other securities	29		2		—		—		31
Loans held for sale	—		867		—		—		867
Loans held for investment	—		110		62		—		172
MSRs	—		—		567		—		567
Other assets:
Derivative assets	—		558		10		(354)		214
Assets held in trust for deferred compensation plans	200		—		—		—		200
Liabilities
Short-term borrowings (2)	416		9		—		—		425
Long-term debt	—		1,014		—		—		1,014


Derivative liabilities	—		606		3		(223)		386

(1)Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions and cash collateral held or placed with the same counterparties.

(2)Includes debt and equity securities held by our broker dealer in its trading inventory and securities sold short as a hedging strategy for purposes of supporting client trading activities. Level 1 fair value positions are determined by quoted market prices available in an active market for identical securities. When quoted market prices are not available, fair values are classified as Level 2 and are determined using quoted prices for similar assets in active markets.

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	Fair Value Measurements at Reporting Date Using						Netting Adjustments (1)		Total
(dollar amounts in millions)	Level 1		Level 2		Level 3
At December 31, 2024
Assets
Trading account securities:
U.S. Treasury securities	$	1	$	—	$	—	$	—	$	1
Other trading account securities	—		52		—		—		52
Total trading account securities	1		52		—		—		53
Available-for-sale securities:
U.S. Treasury securities	6,556		—		—		—		6,556
Residential MBS	—		10,017		—		—		10,017
Residential CMO	—		3,345		—		—		3,345
Commercial MBS	—		1,752		—		—		1,752
Other agencies	—		130		—		—		130
Municipal securities	—		34		3,954		—		3,988
Corporate debt	—		1,055		—		—		1,055
Asset-backed securities	—		262		49		—		311
Private-label CMO	—		88		21		—		109
Other securities/sovereign debt	—		10		—		—		10
Total available-for-sale securities	6,556		16,693		4,024		—		27,273
Other securities	29		2		—		—		31
Loans held for sale	—		652		—		—		652
Loans held for investment	—		112		61		—		173
MSRs	—		—		573		—		573
Other assets:
Derivative assets	—		606		4		(344)		266
Assets held in trust for deferred compensation plans	191		—		—		—		191
Liabilities
Long-term debt	—		821		—		—		821
Derivative liabilities	—		666		2		(90)		578

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The following table presents a rollforward of the balance sheet amounts measured at fair value on a recurring basis and classified as Level 3. The classification of an item as Level 3 is based on the significance of the unobservable inputs to the overall fair value measurement. However, Level 3 measurements may also include observable components of value that can be validated externally. Accordingly, the gains and losses in the table below include changes in fair value due in part to observable factors that are part of the valuation methodology.


	Level 3 Fair Value Measurements
					Available-for-sale securities						Loans held for investment
(dollar amounts in millions)	MSRs		Derivative instruments		Municipal securities		Private- label CMO		Asset-backed securities
Three months ended June 30, 2025
Opening balance	$	564	$	3	$	3,929	$	22	$	47		$	63
Transfers into Level 3	—		—		—		—		—			1
Transfers out of Level 3 (1)	—		(10)		—		—		—			—
Total gains/losses for the period:
Included in earnings:
Interest and fee income	—		—		(1)		—		—			—
Mortgage banking income	—		12		—		—		—			—

Other noninterest income	—		(1)		—		—		—			—

Included in OCI	—		—		12		—		—			—
Purchases/originations	20		—		421		—		—			—

Repayments	—		—		—		—		—			(2)

Settlements	(17)		3		(294)		(1)		(9)			—
Closing balance	$	567	$	7	$	4,067	$	21	$	38		$	62
Change in unrealized gains or losses for the period included in earnings for assets held at end of the reporting date	$	—	$	2	$	—	$	—	$	—		$	—
Change in unrealized gains or losses for the period included in other comprehensive income for assets held at the end of the reporting period	—		—		10		—		—			—
Three months ended June 30, 2024
Opening balance	$	534	$	4	$	3,293	$	20	$	72		$	58
Transfers into Level 3	—		—		—		—		—			4
Transfers out of Level 3 (1)	—		(6)		—		—		—			—
Total gains/losses for the period:
Included in earnings:
Interest and fee income	—		—		(1)		—		—			(1)
Mortgage banking income	12		4		—		—		—			—
Other noninterest income	—		(6)		—		(1)		—			—

Provision for credit losses	—		—		(2)		—		—			—
Included in OCI	—		—		(33)		—		—			—
Purchases/originations	11		—		228		—		—			—

Repayments	—		—		—		—		—			(1)

Settlements	(14)		5		(144)		1		(37)			—
Closing balance	$	543	$	1	$	3,341	$	20	$	35		$	60
Change in unrealized gains or losses for the period included in earnings for assets held at end of the reporting date	$	12	$	(1)	$	—	$	—	$	—		$	—
Change in unrealized gains or losses for the period included in other comprehensive income for assets held at the end of the reporting period	—		—		(34)		—		—			—
(1)Transfers out of Level 3 represent the settlement value of the derivative instruments (i.e., interest rate lock agreements) that are transferred to loans held for sale, which is classified as Level 2.

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	Level 3 Fair Value Measurements
					Available-for-sale securities						Loans held for investment
(dollar amounts in millions)	MSRs		Derivative instruments		Municipal securities		Private- label CMO		Asset-backed securities
Six months ended June 30, 2025
Opening balance	$	573	$	2	$	3,954	$	21	$	49	$	61
Transfers into Level 3	—		—		—		—		—		4
Transfers out of Level 3 (1)	—		(17)		—		—		—		—
Total gains/losses for the period:
Included in earnings:
Interest and fee income	—		—		(1)		—		—		—
Mortgage banking income	(15)		22		—		—		—		—

Other noninterest income	—		(6)		—		—		—		—

Included in OCI	—		—		17		—		—		—
Purchases/originations	40		—		639		—		—		—
Repayments	—		—		—		—		—		(3)
Settlements	(31)		6		(542)		—		(11)		—
Closing balance	$	567	$	7	$	4,067	$	21	$	38	$	62
Change in unrealized gains or losses for the period included in earnings for assets held at end of the reporting date	$	(15)	$	5	$	—	$	—	$	—	$	—
Change in unrealized gains or losses for the period included in other comprehensive income for assets held at the end of the reporting period	—		—		14		—		—		—
Six months ended June 30, 2024
Opening balance	$	515	$	(2)	$	3,335	$	20	$	75	$	54
Transfers into Level 3	—		—		—		—		—		8
Transfers out of Level 3 (1)	—		(11)		—		—		—		—
Total gains/losses for the period:
Included in earnings:
Interest and fee income	—		—		(1)		(1)		—		(1)
Mortgage banking income	32		11		—		—		—		—

Other noninterest income	—		(8)		—		—		—		—
Provision for credit losses	—		—		(2)		—		—		—
Included in OCI	—		—		(14)		—		—		—
Purchases/originations	21		—		300				—		—

Repayments	—		—		—		—		—		(1)

Settlements	(25)		11		(277)		1		(40)		—
Closing balance	$	543	$	1	$	3,341	$	20	$	35	$	60
Change in unrealized gains or losses for the period included in earnings for assets held at end of the reporting date	$	32	$	—	$	—	$	—	$	—	$	—
Change in unrealized gains or losses for the period included in other comprehensive income for assets held at the end of the reporting period	—		—		(16)		—		—		—
(1)Transfers out of Level 3 represent the settlement value of the derivative instruments (i.e., interest rate lock agreements) that are transferred to loans held for sale, which is classified as Level 2.

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Assets and liabilities under the fair value option

The following table presents the fair value and aggregate principal balance of certain assets and liabilities under the fair value option.


	Total						Loans that are 90 or more days past due
(dollar amounts in millions)	Fair value carrying amount		Aggregate unpaid principal		Difference		Fair value carrying amount		Aggregate unpaid principal		Difference
At June 30, 2025
Assets
Loans held for sale	$	867	$	840	$	27	$	—	$	—	$	—
Loans held for investment	172		184		(12)		4		5		(1)
Liabilities
Long-term debt	1,014		1,005		(9)
At December 31, 2024
Assets
Loans held for sale	$	652	$	640	$	12	$	—	$	—	$	—
Loans held for investment	173		184		(11)		4		4		—
Liabilities
Long-term debt	821		817		(4)

The following table presents the net gains (losses) from fair value changes.



		Three Months Ended				Six Months Ended
(dollar amounts in millions)	Classification	June 30, 2025		June 30, 2024		June 30, 2025		June 30, 2024
Loans held for sale	Mortgage banking income	$	9	$	4	$	15	$	(3)
Loans held for investment	Mortgage banking income	—		—		(1)		(1)
Long-term debt	Other noninterest income	(4)		(2)		(5)		(2)

Assets and Liabilities measured at fair value on a nonrecurring basis

Certain assets and liabilities may be required to be measured at fair value on a nonrecurring basis in periods subsequent to their initial recognition. These assets and liabilities are not measured at fair value on an ongoing basis; however, they are subject to fair value adjustments in certain circumstances, for example, when there is evidence of impairment. The gains (losses) represent the amounts recorded during the period regardless of whether the asset is still held at period end.

The amounts measured at fair value on a nonrecurring basis were as follows.


	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)					Total Losses
					Three Months Ended			Six Months Ended
(dollar amounts in millions)	At June 30, 2025		At December 31, 2024			June 30, 2025			June 30, 2024		June 30, 2025		June 30, 2024

Collateral-dependent loans	$	37	$	192		$	(20)		$	(16)	$	(43)	$	(41)

Huntington records nonrecurring adjustments of collateral-dependent loans held for investment. Such amounts are generally based on the fair value of the underlying collateral supporting the loan. Appraisals are generally obtained to support the fair value of the collateral and incorporate measures such as recent sales prices for comparable properties and cost of construction. Periodically, in cases where the carrying value exceeds the fair value of the collateral less cost to sell, an impairment charge is recognized in the form of a charge-off.

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Significant unobservable inputs for assets and liabilities measured at fair value

The following table presents quantitative information about the significant unobservable inputs for assets and liabilities measured at fair value.


	Quantitative Information about Level 3 Fair Value Measurements (1)
			At June 30, 2025							At December 31, 2024
(dollar amounts in millions)	Valuation Technique	Significant Unobservable Input	Range					Weighted Average		Range					Weighted Average
Measured at fair value on a recurring basis:
MSRs	Discounted cash flow	Constant prepayment rate	7	%	-	55	%	8	%	6	%	-	43	%	8	%
		Spread over forward interest rate swap rates	5	%	-	10	%	6	%	5	%	-	10	%	6	%






Municipal securities and asset-backed securities	Discounted cash flow	Discount rate	4	%	-	5	%	4	%	4	%	-	5	%	5	%
		Cumulative default	—	%	-	64	%	4	%	—	%	-	39	%	4	%
		Loss given default (2)						20	%						20	%

(1) Certain disclosures related to quantitative level 3 fair value measurements do not include those deemed to be immaterial.

(2) The range is not meaningful for this unobservable input.

The following provides a general description of the impact of a change in an unobservable input on the fair value measurement and the interrelationship between unobservable inputs, where relevant/significant. Interrelationships may also exist between observable and unobservable inputs.

Components of credit loss estimates including probability of default, constant default, cumulative default, loss given default, cure given deferral, and loss severity, are driven by the ability of the borrowers to pay their loans and the value of the underlying collateral and are impacted by changes in macroeconomic conditions, typically increasing when economic conditions worsen and decreasing when conditions improve. An increase in the estimated prepayment rate typically results in a decrease in estimated credit losses and vice versa. Higher credit loss estimates generally result in lower fair values. Credit spreads generally increase when liquidity risks and market volatility increase and decrease when liquidity conditions and market volatility improve.

Discount rates and spread over forward interest rate swap rates typically increase when market interest rates increase and/or credit and liquidity risks increase and decrease when market interest rates decline and/or credit and liquidity conditions improve. Higher discount rates and credit spreads generally result in lower fair market values.

Fair values of financial instruments

Many of the assets and liabilities subject to the disclosure requirements are not actively traded, requiring fair values to be estimated by management. These estimations necessarily involve the use of judgment about a wide variety of factors, including, but not limited to, relevancy of market prices of comparable instruments, expected future cash flows, and appropriate discount rates.

The short-term nature of certain assets and liabilities result in their carrying value approximating fair value. These include trading account securities, customers’ acceptance liabilities, short-term borrowings, bank acceptances outstanding, and cash and short-term assets, which include cash and due from banks and interest-earning deposits with banks. Loan commitments and letters-of-credit generally have short-term, variable-rate features and contain clauses that limit Huntington’s exposure to changes in customer credit quality. Accordingly, their carrying values, which are immaterial at the respective balance sheet dates, are reasonable estimates of fair value.

Certain assets, the most significant being operating lease assets, bank-owned life insurance, and premises and equipment, do not meet the definition of a financial instrument and are excluded from this disclosure. Similarly, mortgage servicing rights and relationship intangibles are not considered financial instruments and are not included in the following tables. Accordingly, this fair value information is not intended to, and does not, represent Huntington’s underlying value.

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The following table provides the carrying amounts and estimated fair values of Huntington’s financial instruments.


(dollar amounts in millions)	Amortized Cost		Lower of Cost or Market		Fair Value or Fair Value Option		Total Carrying Amount		Estimated Fair Value
At June 30, 2025
Financial Assets
Cash and short-term assets	$	10,947	$	—	$	—	$	10,947	$	10,947
Trading account securities	—		—		481		481		481
Available-for-sale securities	—		—		28,330		28,330		28,330
Held-to-maturity securities	15,965		—		—		15,965		14,089
Other securities	847		—		31		878		878
Loans held for sale	—		9		867		876		876
Net loans and leases (1)	132,457		—		172		132,629		131,653
Derivative assets	—		—		214		214		214
Assets held in trust for deferred compensation plans	—		—		200		200		200
Financial Liabilities
Deposits (2)	163,380		—		—		163,380		163,389
Short-term borrowings	151		—		425		576		576
Long-term debt	16,453		—		1,014		17,467		17,560
Derivative liabilities	—		—		386		386		386
At December 31, 2024
Financial Assets
Cash and short-term assets	$	13,332	$	—	$	—	$	13,332	$	13,332
Trading account securities	—		—		53		53		53
Available-for-sale securities	—		—		27,273		27,273		27,273
Held-to-maturity securities	16,368		—		—		16,368		14,086
Other securities	792		—		31		823		823
Loans held for sale	—		2		652		654		654
Net loans and leases (1)	127,625		—		173		127,798		125,557
Derivative assets	—		—		266		266		266
Assets held in trust for deferred compensation plans	—		—		191		191		191
Financial Liabilities
Deposits (2)	162,448		—		—		162,448		162,455
Short-term borrowings	199		—		—		199		199
Long-term debt	15,553		—		821		16,374		16,573
Derivative liabilities	—		—		578		578		578

(1)Includes collateral-dependent loans.

(2)Includes $1.3 billion and $1.5 billion in time deposits in excess of the FDIC insurance coverage limit at June 30, 2025 and December 31, 2024, respectively.

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The following table presents the level in the fair value hierarchy for the estimated fair values.


	Estimated Fair Value Measurements at Reporting Date Using						Netting Adjustments (1)		Estimated Fair Value
(dollar amounts in millions)	Level 1		Level 2		Level 3
At June 30, 2025
Financial Assets
Trading account securities	$	368	$	113	$	—	$	—	$	481
Available-for-sale securities	7,384		16,820		4,126		—		28,330
Held-to-maturity securities	2,340		11,749		—		—		14,089
Other securities (2)	29		2		—		—		31
Loans held for sale	—		867		9		—		876
Net loans and leases	—		110		131,543		—		131,653
Derivative assets	—		558		10		(354)		214
Financial Liabilities
Deposits	—		149,232		14,157		—		163,389
Short-term borrowings	416		160		—		—		576
Long-term debt	—		12,209		5,351		—		17,560
Derivative liabilities	—		606		3		(223)		386
At December 31, 2024
Financial Assets
Trading account securities	$	1	$	52	$	—	$	—	$	53
Available-for-sale securities	6,556		16,693		4,024		—		27,273
Held-to-maturity securities	2,023		12,063		—		—		14,086
Other securities (2)	29		2		—		—		31
Loans held for sale	—		652		2		—		654
Net loans and leases	—		113		125,444		—		125,557
Derivative assets	—		606		4		(344)		266
Financial Liabilities
Deposits	—		147,045		15,410		—		162,455
Short-term borrowings	—		199		—		—		199
Long-term debt	—		11,242		5,331		—		16,573
Derivative liabilities	—		666		2		(90)		578

(2)Excludes securities without readily determinable fair values.

14. DERIVATIVE FINANCIAL INSTRUMENTS

Derivative financial instruments are recorded in the Unaudited Consolidated Balance Sheets as either an asset or a liability (in other assets or other liabilities, respectively) and measured at fair value.

Derivative financial instruments can be designated as accounting hedges under GAAP. Designating a derivative as an accounting hedge allows Huntington to recognize gains and losses on the hedging instruments in the income statement line item where the gains and losses on the hedged item are recognized. Gains and losses on derivatives that are not designated in an effective hedge relationship under GAAP immediately impact earnings within the period they occur.

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The following table presents the fair values and notional values of all derivative instruments included in the Unaudited Consolidated Balance Sheets. Amounts in the table below are presented gross without the impact of any net collateral arrangements.


	At June 30, 2025						At December 31, 2024
(dollar amounts in millions)	Notional Value		Asset		Liability		Notional Value		Asset		Liability
Derivatives designated as Hedging Instruments
Interest rate contracts	$	45,991	$	147	$	59	$	45,634	$	24	$	—
Foreign exchange contracts	265		1		—		250		—		5
Derivatives not designated as Hedging Instruments
Interest rate contracts	48,944		287		445		42,359		456		580
Foreign exchange contracts	5,207		75		78		5,465		79		54
Equity contracts	935		28		3		823		20		2
Commodities contracts	634		27		24		683		29		27
Credit contracts	187		3		—		247		2		—
Total contracts	$	102,163	$	568	$	609	$	95,461	$	610	$	668

The following table presents the amount of gain or loss recognized in income for derivatives not designated as hedging instruments under ASC Subtopic 815-10 in the Unaudited Consolidated Income Statement.


	Location of Gain or (Loss) Recognized in Income on Derivative		Amount of Gain or (Loss) Recognized in Income on Derivative
		Three Months Ended						Six Months Ended
(dollar amounts in millions)		June 30, 2025			June 30, 2024			June 30, 2025			June 30, 2024
Interest rate contracts:
Customer	Capital markets and advisory fees		$	13		$	6		$	21		$	11
Mortgage banking	Mortgage banking income		(21)			(12)			—			(23)


Foreign exchange contracts	Capital markets and advisory fees		13			11			24			22
Credit contracts	Other noninterest income		(2)			(6)			(4)			(8)
Commodities contracts	Capital markets and advisory fees		1			1			2			2

Equity contracts	Other noninterest income and other noninterest expense		4			(2)			1			(4)
Total			$	8		$	(2)		$	44		$	—

Derivatives used in asset and liability management activities

Huntington engages in balance sheet hedging activity, principally for asset and liability management purposes. Balance sheet hedging activity is generally arranged to receive hedge accounting treatment that can be classified as either fair value or cash flow hedges. Fair value hedges are executed to hedge changes in fair value of outstanding fixed-rate debt and investment securities caused by fluctuations in market interest rates. Cash flow hedges are executed to modify interest rate characteristics of designated commercial loans in order to reduce the impact of changes in future cash flows due to market interest rate changes.

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The following table presents the gross notional values of derivatives used in Huntington’s asset and liability management activities at June 30, 2025 and December 31, 2024, identified by the underlying interest rate-sensitive instruments.



(dollar amounts in millions)	Fair Value Hedges		Cash Flow Hedges		Economic Hedges		Total
At June 30, 2025
Instruments associated with:
Investment securities	$	9,142	$	—	$	—	$	9,142
Loans	—		26,250		175		26,425


Long-term debt	10,599		—		—		10,599

Total notional value	$	19,741	$	26,250	$	175	$	46,166



At December 31, 2024
Instruments associated with:
Investment securities	$	10,987	$	—	$	—	$	10,987
Loans	—		23,300		175		23,475
Long-term debt	11,347		—		—		11,347
Total notional value	$	22,334	$	23,300	$	175	$	45,809

These derivative financial instruments were entered into for the purpose of managing the interest rate risk of assets and liabilities. Net amounts receivable or payable on contracts hedging either interest-earning assets or interest-bearing liabilities were accrued as an adjustment to either interest income or interest expense. Adjustments to interest income were also recorded for the amounts related to the amortization of premiums for floors that were not included in the measurement of hedge effectiveness, as well as the amounts related to terminated hedges reclassified from AOCI. The net amounts resulted in decreases to net interest income of $7 million and $70 million for the three-month periods ended June 30, 2025, and 2024, respectively, and decreases to net interest income of $25 million and $138 million for the six-month periods ended June 30, 2025, and 2024, respectively.

Fair Value Hedges

The changes in fair value of the fair value hedges are recorded through earnings and offset against changes in the fair value of the hedged item.

Huntington has designated $9.1 billion of interest rate swaps as fair value hedges of fixed-rate investment securities using the portfolio layer method. This approach allows the Company to designate as the hedged item a stated amount of the assets that are not expected to be affected by prepayments, defaults, or other factors affecting the timing and amount of cash flows. The fair value portfolio level basis adjustment on our hedged MBS portfolio has not been attributed to the individual AFS securities in our Unaudited Consolidated Balance Sheets.

The following table presents the change in fair value for derivatives designated as fair value hedges as well as the offsetting change in fair value on the hedged item.


	Three Months Ended				Six Months Ended
(dollar amounts in millions)	June 30, 2025		June 30, 2024		June 30, 2025		June 30, 2024
Interest rate contracts
Change in fair value of interest rate swaps hedging investment securities (1)	$	(140)	$	(39)	$	(262)	$	32
Change in fair value of hedged investment securities (1)	138		38		261		(34)


Change in fair value of interest rate swaps hedging long-term debt (2)	72		(31)		215		(159)
Change in fair value of hedged long-term debt (2)	(72)		31		(215)		159

(1)Recognized in Interest income—available-for-sale securities—taxable in the Unaudited Consolidated Statements of Income.

(2)Recognized in Interest expense—long-term debt in the Unaudited Consolidated Statements of Income.

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The following amounts were recorded on the balance sheet related to cumulative basis adjustments for fair value hedges.


	Amortized Cost				Cumulative Amount of Fair Value Hedging Adjustment To Hedged Items
(dollar amounts in millions)	At June 30, 2025		At December 31, 2024		At June 30, 2025		At December 31, 2024
Assets
Available-for-sale securities (1)	$	15,981	$	16,390	$	(197)	$	(458)

Liabilities
Long-term debt (2)	11,036		11,589		(9)		(223)

(1)Amounts represent the amortized cost basis of closed portfolios used to designate hedging relationships under the portfolio layer method. The hedged item is a layer of the closed portfolio that is expected to be remaining at the end of the hedging relationship.

(2)Excluded from the above table are the cumulative amount of fair value hedge adjustments remaining for long-term debt for which hedge accounting has been discontinued in the amounts of $(49) million at June 30, 2025 and $(56) million at December 31, 2024.

Cash Flow Hedges

At June 30, 2025, Huntington had $26.3 billion of interest rate swaps and floors that are designated as cash flow hedges for variable-rate commercial loans. The change in the fair value of a derivative instrument designated as a cash flow hedge is initially recognized in OCI and is reclassified into income when the hedged item impacts earnings. The initial premium paid for the interest rate floor contracts represents the time value of the contracts and is not included in the measurement of hedge effectiveness. The initial premium paid is amortized on a straight-line basis as a reduction to interest income over the contractual life of these contracts.

At June 30, 2025, net losses recognized in AOCI that are expected to be reclassified into earnings within the next 12 months totaled $23 million.

Derivatives used in mortgage banking activities

Mortgage loan origination hedging activity

Huntington uses derivatives, principally loan sale commitments, in hedging its mortgage loan interest rate lock commitments and its mortgage loans held for sale. Mortgage loan sale commitments and the related interest rate lock commitments are carried at fair value on the Unaudited Consolidated Balance Sheets with changes in fair value reflected in mortgage banking income. Huntington’s mortgage origination hedging activity is related to economically hedging Huntington’s mortgage pricing commitments to customers and the secondary sale to third parties. The value of a newly originated mortgage is not firm until the interest rate is committed or locked. Forward commitments to sell economically hedge the possible loss on interest rate lock commitments due to interest rate change. These derivatives were in a net liability position of $1 million at June 30, 2025 and a net asset position of $7 million at December 31, 2024. At June 30, 2025 and December 31, 2024, Huntington had commitments to sell residential real estate loans of $1.4 billion and $869 million, respectively. These contracts mature in less than one year.

MSR hedging activity

Huntington also uses certain derivative financial instruments to offset changes in value of its MSRs. These derivatives consist primarily of forward interest rate agreements and forward mortgage contracts. The derivative instruments used are not designated as qualifying hedges. Accordingly, such derivatives are recorded at fair value with changes in fair value reflected in mortgage banking income. Huntington’s MSR economic hedging activity uses securities and derivatives to manage the value of the MSR assets and to mitigate the various types of risk inherent in the MSR assets, including risks related to duration, basis, convexity, volatility, and yield curve. The hedging instruments include forward commitments, TBA securities, Treasury futures contracts, interest rate swaps, and options on interest rate swaps.

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MSR hedging trading assets and liabilities are included in other assets and other liabilities, respectively, in the Unaudited Consolidated Balance Sheets. Trading gains (losses) are included in mortgage banking income in the Unaudited Consolidated Statements of Income. The notional value of the derivative financial instruments, the corresponding trading assets and liabilities positions, and net trading gains (losses) related to MSR hedging activity are summarized in the following tables.


(dollar amounts in millions)	At June 30, 2025		At December 31, 2024
Notional value	$	1,850	$	1,780

Trading liabilities	10		45


	Three Months Ended				Six Months Ended
(dollar amounts in millions)	June 30, 2025		June 30, 2024		June 30, 2025		June 30, 2024
Trading gains (losses)	$	(6)	$	(10)	$	9	$	(29)

Derivatives used in customer-related activities

Various derivative financial instruments are offered to enable customers to meet their financing and investing objectives and for their risk-management purposes. Derivative financial instruments used in trading activities consist of commodity, interest rate, and foreign exchange contracts. Huntington enters into offsetting third-party contracts with approved, reputable counterparties with substantially matching terms and currencies in order to economically hedge significant exposure related to derivatives used in trading activities.

The interest rate or price risk of customer derivatives is mitigated by entering into similar derivatives having offsetting terms with other counterparties. The credit risk to these customers is evaluated and included in the calculation of fair value.

The net fair values of these derivative financial instruments, for which the gross amounts are included in other assets or other liabilities at June 30, 2025 and December 31, 2024, were $52 million and $72 million, respectively. The total notional values of derivative financial instruments used by Huntington on behalf of customers, including offsetting derivatives, were $50.7 billion and $45.2 billion at June 30, 2025 and December 31, 2024, respectively. Huntington’s credit risk from customer derivatives was $142 million and $76 million at the same dates, respectively.

Credit derivative instruments

Huntington enters into credit default swaps to hedge credit risk associated with certain loans and leases. These contracts are accounted for as derivatives, and accordingly, these contracts are recorded at fair value. The total notional value of credit contracts was $187 million and $247 million at June 30, 2025 and December 31, 2024, respectively. The position of these derivatives was a net asset of $3 million at June 30, 2025 and $2 million at December 31, 2024.

Financial assets and liabilities that are offset in the Unaudited Consolidated Balance Sheets

Huntington records derivatives at fair value as further described in Note 13 - “Fair Values of Assets and Liabilities”.

Derivative balances are presented on a net basis taking into consideration the effects of legally enforceable master netting agreements. Additionally, collateral exchanged with counterparties is also netted against the applicable derivative fair values. Huntington enters into derivative transactions with two primary groups: 1) broker-dealers and banks and 2) Huntington’s customers. Different methods are utilized for managing counterparty credit exposure and credit risk for each of these groups.

Huntington enters into transactions with broker-dealers and banks for various risk management purposes. These types of transactions generally are high dollar volume. Huntington enters into collateral and master netting agreements with these counterparties and routinely exchanges cash and high quality securities collateral.

Huntington also enters into transactions with customers to meet their financing, investing, payment, and risk-management needs. These types of transactions generally are low dollar volume. Huntington enters into master netting agreements with customer counterparties; however, collateral is generally not exchanged with customer counterparties.

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In addition, Huntington clears certain derivative transactions through a clearinghouse, rather than directly with counterparties. Transactions cleared through a clearinghouse require initial margin collateral and variation margin payments depending on the contracts being in a net asset or liability position.

In addition to the customer derivative credit exposure, aggregate credit risk associated with broker-dealer and bank derivative transactions was net credit risk of $41 million and $192 million at June 30, 2025 and December 31, 2024, respectively. The net credit risk associated with derivatives is calculated after considering master netting agreements and is reduced by collateral that has been pledged by the counterparty.

At June 30, 2025, Huntington pledged $207 million of investment securities and cash collateral to counterparties, while other counterparties pledged $175 million of investment securities and cash collateral to Huntington to satisfy collateral netting agreements. In the event of credit downgrades, Huntington would not be required to provide additional collateral.

The following tables present the gross amounts of these assets and liabilities with any offsets to arrive at the net amounts recognized in the Unaudited Consolidated Balance Sheets.


Offsetting of Financial Assets and Derivative Assets
			Gross amounts offset in the unaudited consolidated balance sheets		Net amounts of assets presented in the unaudited consolidated balance sheets		Gross amounts not offset in the unaudited consolidated balance sheets
(dollar amounts in millions)	Gross amounts of recognized assets				Financial instruments		Cash collateral received		Net amount
At June 30, 2025	$	568	$	(354)	$	214	$	(4)	$	(22)	$	188
At December 31, 2024	610		(344)		266		(5)		(35)		226


Offsetting of Financial Liabilities and Derivative Liabilities
			Gross amounts offset in the unaudited consolidated balance sheets		Net amounts of liabilities presented in the unaudited consolidated balance sheets		Gross amounts not offset in the unaudited consolidated balance sheets
(dollar amounts in millions)	Gross amounts of recognized liabilities				Financial instruments		Cash collateral delivered		Net amount
At June 30, 2025	$	609	$	(223)	$	386	$	(66)	$	(120)	$	200
At December 31, 2024	668		(90)		578		(67)		(316)		195

15. VARIABLE INTEREST ENTITIES

Consolidated VIEs

Huntington engages in activities with VIEs in the normal course of business that result in Huntington being the primary beneficiary and which are consolidated in Huntington’s financial statements. The following table provides a summary of the assets and liabilities of VIEs carried on Huntington’s Unaudited Consolidated Balance Sheets.


(dollar amounts in millions)	At June 30, 2025		At December 31, 2024
Assets
Net loans and leases	$	880	$	1,122
Other assets	246		264
Total assets	$	1,126	$	1,386
Liabilities
Long-term borrowings	$	796	$	1,023
Other liabilities	89		109
Total liabilities	$	885	$	1,132

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Huntington previously completed a securitization transaction by transferring automobile loans to a SPE which was deemed to be a VIE, with the SPE in turn issuing asset-backed notes. The primary purpose of the VIE in the securitization transaction was to issue asset-backed securities with varying levels of credit subordination and payment priority. Huntington retained notes and residual interest in the VIE and, therefore, has an obligation to absorb losses and a right to receive benefits that could potentially be significant to the VIE. In addition, Huntington retained servicing rights for the underlying loans and, therefore, holds the power to direct the activities of the VIE that most significantly impact the economic performance of the VIE. The assets of the VIE are restricted to the settlement of the asset-backed securities and other obligations of the VIE. Third-party holders of the asset-backed notes do not have recourse to the general assets of Huntington.

The economic performance of the VIE is most significantly impacted by the performance of the underlying loans. The VIE is exposed to credit and prepayment risk, which are managed through credit enhancements in the form of reserve accounts, over-collateralization, excess interest on the loans, and the subordination of certain classes of asset-backed securities.

Consolidated VIEs at June 30, 2025 and December 31, 2024 also included investments in LIHTC operating entities that were syndicated and where we serve as the general partner and manager. As manager of these entities, we have the power to direct the activities that most significantly impact economic performance, as well as an obligation to absorb significant expected losses, of the entities.

Unconsolidated VIEs

The following tables provide a summary of the assets and liabilities included in Huntington’s Unaudited Consolidated Financial Statements, as well as the maximum exposure to losses, associated with its interests related to unconsolidated VIEs for which Huntington holds an interest in, but is not the primary beneficiary.


(dollar amounts in millions)	Total Assets		Total Liabilities		Maximum Exposure to Loss
At June 30, 2025
Affordable housing tax credit partnerships	$	2,595	$	1,140	$	2,595
Trust preferred securities	14		248		—
Other investments	1,128		179		1,128
Total	$	3,737	$	1,567	$	3,723
At December 31, 2024
Affordable housing tax credit partnerships	$	2,382	$	1,065	$	2,382
Trust preferred securities	14		248		—
Other investments	1,201		168		1,201
Total	$	3,597	$	1,481	$	3,583

Affordable Housing and Other Tax Credit Investments

Huntington makes certain equity investments in various limited partnerships that sponsor affordable housing projects utilizing the LIHTC pursuant to Section 42 of the Internal Revenue Code. The purpose of these investments is to achieve a satisfactory return on capital, to facilitate the sale of additional affordable housing product offerings, and to assist in achieving goals associated with the Community Reinvestment Act. The primary activities of the limited partnerships include the identification, development, and operation of multi-family housing that is leased to qualifying residential tenants. Generally, these types of investments are funded through a combination of debt and equity.

Huntington uses the proportional amortization method to account for a majority of its investments in these entities. These investments are included in other assets. Investments that do not meet the requirements of the proportional amortization method are accounted for using the equity method. Investment losses are included in Other noninterest income in the Unaudited Consolidated Statements of Income.

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The following table presents the balances of Huntington’s affordable housing tax credit investments and related unfunded commitments.


(dollar amounts in millions)	At June 30, 2025		At December 31, 2024
Affordable housing tax credit investments	$	3,953	$	3,628
Less: amortization	(1,358)		(1,246)
Net affordable housing tax credit investments	$	2,595	$	2,382
Unfunded commitments	$	1,140	$	1,065

The following table presents other information relating to Huntington’s affordable housing tax credit investments.


	Three Months Ended				Six Months Ended
(dollar amounts in millions)	June 30, 2025		June 30, 2024		June 30, 2025		June 30, 2024
Tax credits and other tax benefits recognized	$	87	$	76	$	173	$	152

Proportional amortization expense included in provision for income taxes	71		63		141		126

The initial investment in affordable housing tax credit investments and subsequent tax credits, benefits, and amortization are included within operating activities in the Unaudited Consolidated Statements of Cash Flows.

Trust-Preferred Securities

Huntington has certain wholly-owned trusts whose assets, liabilities, equity, income, and expenses are not included within Huntington’s Unaudited Consolidated Financial Statements. These trusts have been formed for the sole purpose of issuing trust-preferred securities, from which the proceeds are then invested in Huntington junior subordinated debentures, which are reflected in Huntington’s Unaudited Consolidated Balance Sheet as long-term debt. The trust securities are the obligations of the trusts, and as such, are not consolidated within Huntington’s Unaudited Consolidated Financial Statements.

Other Investments

Other investments determined to be VIEs include investments in Small Business Investment Companies, Historic Tax Credit Investments, certain equity method investments, renewable energy financings, and other miscellaneous investments.

16. COMMITMENTS AND CONTINGENT LIABILITIES

Commitments to Extend Credit

In the ordinary course of business, Huntington makes various commitments to extend credit that are not reflected in the Unaudited Consolidated Financial Statements. The contract amounts of these financial agreements were as follows:


(dollar amounts in millions)	At June 30, 2025		At December 31, 2024
Contract amount representing credit risk
Commitments to extend credit:
Commercial and industrial	$	41,208	$	37,422
Consumer loan portfolio	20,651		19,993
Commercial real estate	2,369		2,089
Standby letters of credit and guarantees on industrial revenue bonds	772		725

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Commitments to extend credit generally have fixed expiration dates, are variable-rate, and contain clauses that permit Huntington to terminate or otherwise renegotiate the contracts in the event of a significant deterioration in the customer’s credit quality. These arrangements normally require the payment of a fee by the customer, the pricing of which is based on prevailing market conditions, credit quality, probability of funding, and other relevant factors. Since many of these commitments are expected to expire without being drawn upon, the contract amounts are not necessarily indicative of future cash requirements. The interest rate risk arising from these financial instruments is insignificant as a result of their predominantly short-term, variable-rate nature. Certain commitments to extend credit are secured by collateral, including residential and commercial real estate, inventory, receivables, cash and securities, and other business assets.

Standby letters-of-credit and guarantees on industrial revenue bonds are conditional commitments issued to guarantee the performance of a customer to a third-party. These conditional commitments are primarily issued to support public and private borrowing arrangements, including commercial paper, bond financing, and similar transactions and mature within two years. Since the conditions under which Huntington is required to fund these conditional commitments may not materialize, the cash requirements are expected to be less than the total outstanding commitments. The carrying amount of deferred revenue associated with these conditional commitments was $32 million and $27 million at June 30, 2025 and December 31, 2024, respectively.

Other Guarantees

Huntington provides guarantees to certain third-party investors in connection with the sale of syndicated affordable housing tax credits. These guarantees are generally in the form of make-whole provisions that are triggered if the underlying performance of LIHTC properties result in a shortfall to the third-party investors and remain in effect until the final associated tax credits are realized. The maximum amount guaranteed by the Company under these arrangements total approximately $201 million at both June 30, 2025 and December 31, 2024, and represents the guaranteed portion in these transactions where the make-whole provisions have not yet expired. As of June 30, 2025, the Company did not expect to be subject to any make-whole provisions under these guarantees.

Litigation and Regulatory Matters

In the ordinary course of business, Huntington is, or may be a defendant in, or party to pending and threatened legal and regulatory actions and proceedings.

In view of the inherent difficulty of predicting the outcome of such matters, particularly where the claimants seek very large or indeterminate damages or where the matters present novel legal theories or involve a large number of parties, Huntington generally cannot predict what the eventual outcome of the pending matters will be, what the timing of the ultimate resolution of these matters will be, or what the eventual loss, fines, or penalties related to each matter may be.

Huntington establishes an accrued liability when those matters present loss contingencies that are both probable and estimable. In such cases, there may be an exposure to loss in excess of any amounts accrued. Huntington thereafter continues to monitor the matter for further developments that could affect the amount of the accrued liability that has been previously established.

For certain matters, Huntington is able to estimate a range of possible loss. In cases in which Huntington possesses information to estimate a range of possible loss, that estimate is aggregated and disclosed below. There may be other matters for which a loss is probable or reasonably possible but such an estimate of the range of possible loss may not be possible. For those matters where an estimate of the range of possible loss is possible, management currently estimates the aggregate range of reasonably possible loss is $0 to $15 million at June 30, 2025 in excess of the accrued liability (if any) related to those matters. This estimated range of possible loss is based upon currently available information and is subject to significant judgment, a variety of assumptions, and known and unknown uncertainties. The matters underlying the estimated range will change from time to time, and actual results may vary significantly from the current estimate. The estimated range of possible loss does not represent Huntington’s maximum loss exposure.

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Based on current knowledge, management does not believe that loss contingencies arising from pending matters will have a material adverse effect on the consolidated financial position of Huntington. Further, management believes that amounts accrued are adequate to address Huntington’s contingent liabilities. However, in light of the inherent uncertainties involved in these matters, some of which are beyond Huntington’s control, and the large or indeterminate damages sought in some of these matters, an adverse outcome in one or more of these matters could be material to Huntington’s results of operations for any particular reporting period.

17. SEGMENT REPORTING

Huntington’s business segments are based on our internally-aligned segment leadership structure, which is how management monitors results and assesses performance. Huntington reports on two business segments: Consumer & Regional Banking and Commercial Banking. All other items not included within our two business segments are reported within the Treasury / Other function, which primarily includes technology and operations and other unallocated assets, liabilities, revenue, and expense. For a description of our business segments, see Note 24 - “Segment Reporting” to the Consolidated Financial Statements appearing in Huntington’s 2024 Annual Report on Form 10-K.

The following tables present certain operating basis financial information for each reportable business segment reconciled to Huntington’s consolidated financial results.



	Consumer & Regional Banking		Commercial Banking		Treasury / Other		Huntington Consolidated
(dollar amounts in millions)
Three months ended June 30, 2025
Net interest income (loss)	$	1,014	$	513	$	(60)	$	1,467
Provision (benefit) for credit losses	138		(35)		—		103
Net interest income (loss) after provision (benefit) for credit losses	876		548		(60)		1,364
Noninterest income	339		177		(45)		471
Noninterest expense:
Direct personnel costs	305		149		268		722
Other noninterest expense, including corporate allocations	535		168		(228)		475
Total noninterest expense	840		317		40		1,197
Income (loss) before income taxes	375		408		(145)		638
Provision (benefit) for income taxes	78		86		(68)		96
Income attributable to non-controlling interest	—		6		—		6
Net income (loss) attributable to Huntington	$	297	$	316	$	(77)	$	536
Three months ended June 30, 2024
Net interest income (loss)	$	1,007	$	527	$	(222)	$	1,312
Provision for credit losses	76		24		—		100
Net interest income (loss) after provision for credit losses	931		503		(222)		1,212
Noninterest income	322		164		5		491
Noninterest expense:
Direct personnel costs	285		148		230		663
Other noninterest expense, including corporate allocations	503		152		(201)		454
Total noninterest expense	788		300		29		1,117
Income (loss) before income taxes	465		367		(246)		586
Provision (benefit) for income taxes	97		77		(68)		106
Income attributable to non-controlling interest	—		6		—		6
Net income (loss) attributable to Huntington	$	368	$	284	$	(178)	$	474

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	Consumer & Regional Banking		Commercial Banking		Treasury / Other		Huntington Consolidated
(dollar amounts in millions)
Six months ended June 30, 2025
Net interest income (loss)	$	1,957	$	1,026	$	(90)	$	2,893
Provision for credit losses	185		33		—		218
Net interest income (loss) after provision for credit losses	1,772		993		(90)		2,675
Noninterest income	666		339		(40)		965
Noninterest expense:
Direct personnel costs	599		288		506		1,393
Other noninterest expense, including corporate allocations	1,060		332		(436)		956
Total noninterest expense	1,659		620		70		2,349
Income (loss) before income taxes	779		712		(200)		1,291
Provision (benefit) for income taxes	163		150		(95)		218
Income attributable to non-controlling interest	—		10		—		10
Net income (loss) attributable to Huntington	$	616	$	552	$	(105)	$	1,063
Six months ended June 30, 2024
Net interest income (loss)	$	1,963	$	1,050	$	(414)	$	2,599
Provision for credit losses	122		85		—		207
Net interest income (loss) after provision for credit losses	1,841		965		(414)		2,392
Noninterest income	630		309		19		958
Noninterest expense:
Direct personnel costs	560		285		457		1,302
Other noninterest expense, including corporate allocations	1,005		309		(362)		952
Total noninterest expense	1,565		594		95		2,254
Income (loss) before income taxes	906		680		(490)		1,096
Provision (benefit) for income taxes	190		143		(141)		192
Income attributable to non-controlling interest	—		11		—		11
Net income (loss) attributable to Huntington	$	716	$	526	$	(349)	$	893


	Assets				Deposits
(dollar amounts in millions)	At June 30, 2025		At December 31, 2024		At June 30, 2025		At December 31, 2024
Consumer & Regional Banking	$	80,225	$	78,841	$	111,926	$	111,390
Commercial Banking	70,380		66,919		43,691		43,366
Treasury / Other	57,137		58,470		7,763		7,692
Total	$	207,742	$	204,230	$	163,380	$	162,448

2025 2Q Form 10-Q 87

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