About Huntington Bancshares

Huntington Bancshares Incorporated (Huntington) operates as a multi-state diversified regional bank holding company for The Huntington National Bank that provides full-service commercial and consumer deposit, lending, and other banking services. The company offers, but are not limited to, payments, mortgage banking, automobile, recreational vehicle and marine financing, investment banking, capital markets, advisory, equipment financing, distribution finance, investment management, trust, brokerage, insurance, and other financial products and services. Its full-service branches and private client group offices are primarily located in Ohio, Colorado, Illinois, Indiana, Kentucky, Michigan, Minnesota, Pennsylvania, West Virginia, and Wisconsin. Select financial services and other activities are also conducted in other states. Segments The company operates through two business segments: Consumer & Regional Banking and Commercial Banking. Consumer & Regional Banking The Consumer & Regional Banking segment provides a wide array of financial products and services to consumer and business customers, including but not limited to, deposits, lending, payments, mortgage banking, dealer financing, investment management, trust, brokerage, insurance, and other financial products and services. The company serve the company’s customers through the company’s network of channels, including branches and ATMs, online and mobile banking, and through the company’s customer call centers. The company’s Fair Play banking suite of products includes 24-Hour Grace, Asterisk-Free Checking, Money Scout, $50 Safety Zone, Standby Cash, Early Pay, Instant Access, Savings Goal Getter and Huntington Heads Up. Consumer & Regional Banking offers a comprehensive set of digitally powered consumer and business financial solutions to Consumer Lending, Regional Banking, Branch Banking, and Wealth Management customers. Consumer Lending provides direct and indirect consumer loans, as well as dealer finance loans and deposits. The direct consumer loan products, including mortgage and home equity, are originated through branch, online, and third-party channels. Indirect consumer loans are originated through deep relationships with dealerships to finance consumer purchases of automobiles, recreational vehicles, marine craft, and powersports. The company also provides dealer finance loans (including floorplan loans), deposits, and other financial products to these dealerships and their owners. Regional Banking, along with the company’s business and specialty banking offerings, is a dynamic part of its business and the company is committed to being the bank of choice for businesses in the company’s markets. Regional Banking is defined as serving small to mid-sized businesses. Beyond conventional lending solutions, Huntington offers access to capital markets, practice finance, and SBA lending capabilities. The company is the #1 SBA lender in the nation by loan volume as of federal fiscal year end September 30, 2023. In addition, the company’s payments business provides credit and debit cards and treasury management services to the company’s customers. Huntington continues to develop products and services that are designed specifically to meet the needs of business customers and looks for ways to help companies find solutions to their financing needs. Branch Banking provides a full range of financial products and services to consumer and business customers through the company’s extensive branch and ATM network. The branch network offers full-service branches that are primarily located in Ohio, Colorado, Illinois, Indiana, Kentucky, Michigan, Minnesota, Pennsylvania, West Virginia, and Wisconsin. Wealth Management has a comprehensive product offering, including private banking, wealth management and legacy planning through investment and portfolio management, fiduciary administration and trust services, institutional custody services, and full-service retail brokerage investments. Commercial Banking The Commercial Banking segment provides expertise through bankers, capabilities, and digital channels, and includes a comprehensive set of product offerings. The company’s target clients span from mid-market to large corporates across a national footprint. The Commercial Banking segment leverages internal partnerships for wealth management, trust, insurance, payments, and treasury management capabilities. In particular, the company’s payments capabilities continue to expand as the company develops unique solutions for its diverse client segments, including Huntington ChoicePay. The Commercial Banking segment includes customers in Middle Market Banking, Corporate, Specialty, and Government Banking, Asset Finance, Commercial Real Estate Banking, and Capital Markets. Middle Market Banking serves the banking needs of mid-sized clients, leveraging the company’s local presence to serve its clients, and extending the company’s full suite of banking products including lending, liquidity, treasury management and other payment services, and capital markets. Corporate, Specialty, and Government Banking serves medium to large enterprises. The company focuses on specific industry verticals such as government and non-profits, healthcare, technology and telecommunications, franchises, financial sponsors, and global services. The company’s expertise in these markets allows the company to uniquely serve its clients’ sophisticated banking, capital markets, and payments requirements. Asset Finance serves the company’s clients’ capital expenditure and working capital needs through equipment financing, asset-based lending, distribution finance, structured lending, and municipal financing solutions. The company’s relationship with large manufacturers is bolstered by a strong commitment to their dealers and financing needs. Commercial Real Estate Banking provides banking solutions to commercial real estate developers and institutional sponsors across the nation. Within this group, Huntington Community Development improves the quality of life for the company’s communities and the residents of low-to-moderate income neighborhoods by developing and delivering innovative products and services to support affordable housing and neighborhood stabilization, including tax credit investments. Capital Markets delivers corporate risk management, institutional sales and trading, debt and equity issuance, and additional advisory services. Treasury / Other The Treasury / Other function includes technology and operations. Loans Portfolio The company’s commercial loan portfolio is diversified by product type, customer size, and geography, and is consisted of the following (see Commercial Credit discussion): C&I – C&I loans are made to commercial customers for use in normal business operations to finance working capital needs, equipment purchases, or other projects, and to institutional sponsors supporting REITs. The company focuses on borrowers doing business within its geographic markets. C&I loans are generally underwritten individually and secured with the assets of the company and/or the personal guarantee of the business owners. The financing of owner-occupied facilities is considered a C&I loan even though there is improved real estate as collateral. As the company has expanded its C&I portfolio, the company has developed a series of ‘vertical specialties’ to ensure that new products or lending types are embedded within a structured, centralized Commercial Lending area with designated, experienced credit officers. These specialties are consisted of either targeted industries (for example, healthcare, technology & telecom, finance and insurance, etc.) and/or lending disciplines (equipment finance, distribution finance, asset-based lending, etc.), all of which requires a high degree of expertise and oversight to effectively mitigate and monitor risk. As such, the company has dedicated colleagues and teams focused on bringing value-added expertise to these specialty customers. CRE – The CRE portfolio includes both CRE commercial and CRE construction loans. CRE commercial loans are loans to developers. These loans are made to finance properties, such as apartment buildings, office and industrial buildings, and retail shopping centers. CRE construction loans are loans to developers, companies, or individuals used for the construction of a commercial or residential property for which repayment will be generated by the sale or permanent financing of the property. The company’s CRE construction portfolio primarily consists of multi-family, retail, and warehouse property types. Generally, these loans are for construction projects that have been pre-sold or pre-leased, or have secured permanent financing, as well as loans to real estate companies with significant equity invested in each project. These loans are managed by a specialized real estate lending group that actively monitors the construction phase and manages the loan disbursements according to the predetermined construction schedule. Lease Financing – Lease financing products are designed to address the diverse financing needs of small to large companies primarily for the acquisition of equipment. The company’s lease financing portfolio will utilize a variety of origination partners and third-party sources including equipment manufacturers, dealers, or vendors set up under program structures to generate transactions from a nationwide footprint. High level business lines comprise industrial finance, specialty finance, healthcare finance, technology finance, and specialized transportation, franchise, & government. The consumer portfolio is primarily consisted of residential mortgages, automobile loans, home equity loans and lines-of-credit, and RV and marine finance. Residential Mortgage – Residential mortgage loans represent loans to consumers for the purchase or refinance of a residence. These loans are generally financed over a 15-year to 30-year term, and in most cases, are extended to borrowers to finance their primary residence. Automobile – Automobile loans are primarily consisted of loans made through automotive dealerships and include exposure in selected states outside of the company’s primary banking markets. Home Equity – Home equity lending includes both home equity loans and lines-of-credit. This type of lending, which is secured by a first-lien or junior-lien on the borrower’s residence, allows customers to borrow against the equity in their home or refinance existing mortgage debt. RV and Marine – RV and marine loans are loans provided to consumers for the purpose of financing recreational vehicles and boats. Loans are originated on an indirect basis through a series of dealerships across 35 states. Other Consumer – Other consumer loans primarily consist of consumer loans not secured by real estate, including credit cards, personal unsecured loans, and overdraft balances. The company originates these products within its established set of credit policies and guidelines. Investment Securities As of December 31, 2023, the company’s investment securities were U.S. treasury, federal agency securities (residential CMO (collateralized mortgage obligations), residential MBS (mortgage-backed securities), and commercial MBS), and other agency securities, as well as municipal securities, private-label CMO, asset-backed securities, corporate debt securities, and other securities/sovereign debt securities. Deposits As of December 31, 2023, the company’s deposits included demand deposits—noninterest-bearing; and interest-bearing deposits, such as demand deposits—interest-bearing, money market deposits, savings and other domestic deposits, core certificates of deposit, other domestic deposits of $250,000 or more, and negotiable CDs, brokered and other deposits. Regulatory Matters The company is subject to supervision, regulation, and examination by various federal and state regulators, including the Federal Reserve, OCC, SEC, CFPB, FDIC, FINRA, and various state regulatory agencies. The company is also subject to the disclosure and regulatory requirements of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, both as administered by the SEC, as well as the rules of Nasdaq that apply to companies with securities listed on the Nasdaq Global Select Market. Huntington is a BHC under the BHC Act that has elected to be a FHC. The bank is a national banking association chartered under the laws of the U.S. As a national bank, the activities of the bank are limited to those specifically authorized under the National Bank Act and OCC regulations. The bank is subject to comprehensive primary supervision, regulation, and examination by the OCC. As a member of the DIF, the bank is also subject to regulation and examination by the FDIC. In addition, Huntington, the bank, and other Huntington subsidiaries are subject to supervision, regulation, and examination by the CFPB, which is the primary administrator of most federal consumer financial statutes and Huntington’s primary consumer financial regulator. Acquisitions of Huntington’s voting stock above certain thresholds are subject to prior regulatory notice or approval under federal banking laws, including the BHC Act and the Change in Bank Control Act of 1978. The OCC has published guidelines to set expectations for the governance and risk management practices of certain large financial institutions, including the Bank. The bank is subject to the Bank Secrecy Act and, therefore, is required to provide its employees with AML training, designate an AML compliance officer, and undergo an annual, independent audit to assess the effectiveness of its AML program. The bank has implemented policies, procedures, and internal controls that are designed to comply with these AML requirements. The GLBA requires financial institutions to periodically disclose their privacy policies and practices relating to sharing such information and enables retail customers to opt out of the company’s ability to share information with unaffiliated third parties under certain circumstances. Like other lenders, the bank and other of the company’s subsidiaries use credit bureau data in their underwriting activities. Use of such data is regulated under the FCRA, and the FCRA also regulates reporting information to credit bureaus, prescreening individuals for credit offers, sharing of information between affiliates, and using affiliate data for marketing purposes. The bank accepts customer deposits that are insured by the DIF and, therefore, must pay insurance premiums. The FDIC also requires large insured depository institutions, including the bank, to maintain enhanced deposit account recordkeeping and related information technology system capabilities to facilitate prompt payment of insured deposits if such an institution were to fail. The relevant federal bank regulatory agency, the OCC in the bank’s case, examines each bank and assigns it a public CRA rating. A bank’s record of fair lending compliance is part of the resulting CRA examination report. The company is subject to supervision and regulation by the CFPB with respect to federal consumer protection laws. The company is also subject to certain state consumer protection laws, and under the Dodd-Frank Act, state attorneys general and other state officials are empowered to enforce certain federal consumer protection laws and regulations. State authorities have increased their focus on and enforcement of consumer protection rules. These federal and state consumer protection laws apply to a broad range of the company’s activities and to various aspects of its business and include laws relating to interest rates, fair lending, disclosures of credit terms and estimated transaction costs to consumer borrowers, debt collection practices, the use of and the provision of information to consumer reporting agencies, and the prohibition of unfair, deceptive, or abusive acts or practices in connection with the offer, sale, or provision of consumer financial products and services. History Huntington Bancshares Incorporated was founded in 1866. The company was incorporated under Maryland law in 1966.