Huntington Bancshares Incorporated (NASDAQ:HBAN) Q2 2023 Earnings Conference Call July 21, 2023 9:00 AM ET Company Participants Tim Sedabres - Vice President & Head of Investor Relations Steve Steinour - Chairman, President & Chief Executive Officer Zach Wasserman - Senior Executive Vice President & Chief Financial Officer Rich Pohle - Executive Vice President & Chief Credit Officer Conference Call Participants Manan Gosalia - Morgan Stanley Matt O'Connor - Deutsche Bank Steven Alexopoulos - JPMorgan Ebrahi ...

[PART I. FINANCIAL INFORMATION](index=6&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section provides a comprehensive overview of the company's financial performance, condition, and risk management strategies [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=6&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes the company's financial condition and operational results, detailing performance drivers, risk management, and capital [Executive Overview](index=6&type=section&id=Executive%20Overview) Q1 2023 net income rose to **$602 million**, driven by increased net interest income and a **$57 million** gain from the RPS business sale Q1 2023 vs. Q1 2022 Performance Summary | Metric | Q1 2023 | Q1 2022 | Change | | :--- | :--- | :--- | :--- | | Net Income | $602 million | $460 million | +31% | | Diluted EPS | $0.39 | $0.29 | +34% | | Net Interest Income | $1.4 billion | $1.1 billion | +23% | | Provision for Credit Losses | $85 million | $25 million | +240% | | Noninterest Income | $512 million | $499 million | +3% | | Noninterest Expense | $1.1 billion | $1.1 billion | +3% | - Strategic activities included the March 2023 sale of the Retirement Plan Services (RPS) business for a **$57 million** gain, following 2022 acquisitions of digital payments firm Torana and investment bank Capstone Partners[15](index=15&type=chunk)[16](index=16&type=chunk)[17](index=17&type=chunk) - The company's economic forecast assumes a mild recession in 2023, with expectations of moderating inflation, lower GDP growth, and higher unemployment before a rebound in 2024[27](index=27&type=chunk) - No common stock was repurchased in Q1 2023, and the company does not expect to utilize its share repurchase program for the remainder of 2023 to prioritize capital for loan growth[25](index=25&type=chunk) [Discussion of Results of Operations](index=8&type=section&id=Discussion%20of%20Results%20of%20Operations) Q1 2023 saw **17% total revenue growth**, with net interest income up **23%** and noninterest income up **3%**, alongside increased credit loss provisions Q1 2023 vs Q1 2022 Income Statement Highlights | Metric | Q1 2023 | Q1 2022 | Change (%) | | :--- | :--- | :--- | :--- | | Net Interest Income | $1,409M | $1,146M | +23% | | Provision for Credit Losses | $85M | $25M | +240% | | Total Noninterest Income | $512M | $499M | +3% | | Total Noninterest Expense | $1,086M | $1,053M | +3% | | Net Income Attributable to Huntington | $602M | $460M | +31% | | Diluted EPS | $0.39 | $0.29 | +34% | [Risk Management and Capital](index=14&type=section&id=Risk%20Management%20and%20Capital) The company maintains a moderate-to-low risk appetite, with solid credit quality, strong liquidity, and robust capital ratios exceeding well-capitalized standards [Credit Risk](index=14&type=section&id=Credit%20Risk) Credit risk is managed via a diversified loan portfolio, with stable ACL at **1.90%** of loans, despite increased net charge-offs to **0.19%** in Q1 2023 Loan and Lease Portfolio Composition (March 31, 2023) | Category | Amount (in millions) | Percentage | | :--- | :--- | :--- | | Total Commercial | $68,670 | 57% | | Total Consumer | $52,509 | 43% | | **Total Loans and Leases** | **$121,179** | **100%** | Key Credit Quality Metrics | Metric | March 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Nonperforming Assets (NPAs) | $578M | $594M | | NPA Ratio | 0.48% | 0.50% | | Nonaccrual Loans / Total Loans | 0.44% | 0.48% | | ACL / Total Loans | 1.90% | 1.90% | - Net charge-offs for Q1 2023 were **$57 million** (**0.19%** of average loans), a notable increase from **$19 million** (**0.07%**) in Q1 2022, driven by the commercial portfolio moving from net recoveries to net charge-offs[59](index=59&type=chunk)[80](index=80&type=chunk) [Market Risk](index=21&type=section&id=Market%20Risk) Interest rate risk is managed with an asset-sensitive balance sheet, benefiting from rising rates, and a **$44.2 billion** derivative portfolio for hedging Interest Rate Sensitivity Analysis (at March 31, 2023) | Scenario (Gradual Parallel Shift) | NII at Risk (%) | EVE at Risk (%) (Immediate Shock) | | :--- | :--- | :--- | | +200 bps | +5.5% | -8.4% | | +100 bps | +2.8% | -3.2% | | -100 bps | -2.9% | +0.9% | | -200 bps | -6.1% | -0.9% | - The company uses a derivative portfolio with a notional value of **$44.2 billion** for asset and liability management, primarily consisting of interest rate swaps to convert fixed-rate assets/liabilities to variable and vice-versa[96](index=96&type=chunk) - Mortgage Servicing Rights (MSRs) were valued at **$485 million**, with hedging strategies employed to mitigate fair value changes due to interest rate movements[100](index=100&type=chunk) [Liquidity Risk](index=24&type=section&id=Liquidity%20Risk) Liquidity is strong, supported by a **97% core deposit base** (**$140.4 billion**) and **$51.1 billion** in contingent borrowing capacity, enhanced by an additional **$24 billion** Deposit Composition (at March 31, 2023) | Deposit Category | Amount (in millions) | Percentage of Total | | :--- | :--- | :--- | | Total Core Deposits | $140,419 | 97% | | Total Non-Core Deposits | $4,859 | 3% | | **Total Deposits** | **$145,278** | **100%** | | Insured Deposits | $100,186 | 69% | | Uninsured Deposits | $45,092 | 31% | - Available contingent borrowing capacity at the FHLB and Federal Reserve totaled **$51.1 billion** at quarter-end, with an additional **$24 billion** added early in the second quarter of 2023[115](index=115&type=chunk) - The parent company held **$3.0 billion** in cash and cash equivalents at quarter-end to meet its obligations, including dividends and debt service[118](index=118&type=chunk) [Operational Risk](index=27&type=section&id=Operational%20Risk) Operational risk, including cyber threats, is managed through robust internal controls, committee oversight, and employee training, with no material losses to date - The company actively monitors for cyberattacks and has increased cybersecurity and fraud monitoring, including specific surveillance of remote connections, as a significant portion of the workforce can work remotely[123](index=123&type=chunk) - A multi-committee governance structure (Operational Risk, Legal, Funds Movement, Third Party Risk) oversees operational risks, with clear escalation paths to the Board's Risk, Audit, and Technology Committees[125](index=125&type=chunk) [Compliance Risk](index=28&type=section&id=Compliance%20Risk) Compliance risk is managed through a dedicated team and comprehensive employee training to ensure strict adherence to all applicable financial regulations - A dedicated compliance team and broad-based employee training are utilized to manage compliance risk across numerous regulations, including anti-money laundering, fair lending, and consumer privacy[128](index=128&type=chunk) [Capital](index=28&type=section&id=Capital) Capital ratios exceed well-capitalized standards, with CET1 at **9.55%** and shareholders' equity up **$1.0 billion**, prioritizing loan growth over share repurchases Regulatory Capital Ratios (Consolidated) | Ratio | March 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | CET1 Risk-Based Capital | 9.55% | 9.36% | | Tier 1 Risk-Based Capital | 11.30% | 10.90% | | Total Risk-Based Capital | 13.53% | 13.09% | | Tier 1 Leverage | 8.79% | 8.60% | - Shareholders' equity increased by **$1.0 billion** (**6%**) from year-end 2022 to **$18.8 billion**, driven by earnings and improved AOCI[135](index=135&type=chunk) - No shares were repurchased in Q1 2023 under the **$1.0 billion** authorization, as the company does not expect to utilize the program in 2023 to prioritize funding for loan and lease growth[138](index=138&type=chunk) [Business Segment Discussion](index=29&type=section&id=Business%20Segment%20Discussion) Commercial Banking and Consumer & Business Banking were primary Q1 2023 earnings drivers, with RBHPCG boosted by a business sale, and Treasury/Other reporting a net loss Net Income by Business Segment (Q1 2023 vs Q1 2022) | Segment | Q1 2023 Net Income | Q1 2022 Net Income | | :--- | :--- | :--- | | Commercial Banking | $318M | $140M | | Consumer and Business Banking | $430M | $181M | | Vehicle Finance | $44M | $67M | | RBHPCG | $83M | $19M | | Treasury / Other | ($273M) | $53M | | **Total Net Income** | **$602M** | **$460M** | - The company announced an organizational realignment effective Q2 2023, consolidating Consumer and Business Banking, Vehicle Finance, and RBHPCG into a single new segment named Consumer & Regional Banking[140](index=140&type=chunk) [Additional Disclosures](index=34&type=section&id=Additional%20Disclosures) This section outlines forward-looking statements, clarifies non-GAAP financial measures, and details critical accounting policies, focusing on ACL sensitivity to macroeconomic forecasts - The report uses non-GAAP measures like FTE net interest income and tangible common equity ratios to provide additional insight into performance and capital adequacy[162](index=162&type=chunk)[163](index=163&type=chunk)[164](index=164&type=chunk) - The Allowance for Credit Losses (ACL) is a critical accounting estimate highly sensitive to macroeconomic forecasts; a hypothetical 100% adverse economic scenario would result in an approximate **$1.1 billion** increase to the quantitative ACL[170](index=170&type=chunk)[173](index=173&type=chunk)[174](index=174&type=chunk) [Financial Statements (Unaudited)](index=38&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) This section presents the unaudited consolidated financial statements, including Balance Sheets, Income Statements, and Cash Flows, with accompanying notes [Consolidated Balance Sheets](index=38&type=section&id=Consolidated%20Balance%20Sheets) This section presents the company's consolidated financial position, detailing assets, liabilities, and shareholders' equity as of specific reporting dates Consolidated Balance Sheet Highlights | (in millions) | March 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Total Assets | $189,070 | $182,906 | | Net Loans and Leases | $119,037 | $117,402 | | Total Deposits | $145,278 | $147,914 | | Total Liabilities | $170,259 | $165,137 | | Total Shareholders' Equity | $18,758 | $17,731 | [Consolidated Statements of Income](index=39&type=section&id=Consolidated%20Statements%20of%20Income) This section presents the company's consolidated financial performance, detailing revenues, expenses, and net income for the reported periods Consolidated Income Statement Highlights (Three Months Ended) | (in millions) | March 31, 2023 | March 31, 2022 | | :--- | :--- | :--- | | Net Interest Income | $1,409 | $1,146 | | Provision for Credit Losses | $85 | $25 | | Total Noninterest Income | $512 | $499 | | Total Noninterest Expense | $1,086 | $1,053 | | Net Income Attributable to Huntington | $602 | $460 | [Consolidated Statements of Comprehensive Income](index=41&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) This section presents the company's comprehensive income, including net income and other comprehensive income items not recognized in net income [Consolidated Statements of Changes in Shareholders' Equity](index=42&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders%27%20Equity) This section details changes in the company's shareholders' equity, including net income, dividends, and other equity transactions [Consolidated Statements of Cash Flows](index=43&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section presents the company's cash inflows and outflows from operating, investing, and financing activities for the reported periods [Notes to Unaudited Consolidated Financial Statements](index=45&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) This section provides detailed disclosures and explanations of the accounting policies and financial instrument balances presented in the financial statements [Quantitative and Qualitative Disclosures about Market Risk](index=83&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section refers to the 'Market Risk' discussion within MD&A for quantitative and qualitative disclosures on market risk exposures [Controls and Procedures](index=83&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2023, with no material changes to internal control over financial reporting - The CEO and CFO concluded that as of March 31, 2023, the company's disclosure controls and procedures were effective[347](index=347&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[348](index=348&type=chunk) [PART II. OTHER INFORMATION](index=83&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section provides additional information not covered in the financial statements, including legal proceedings, risk factors, and equity security sales [Legal Proceedings](index=83&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine legal matters, with an estimated possible loss range of **$0 to $15 million**, not expected to materially impact financial position - For certain legal matters, management estimates the aggregate range of reasonably possible loss is **$0 to $15 million** at March 31, 2023, in excess of any accrued liability[340](index=340&type=chunk) [Risk Factors](index=83&type=section&id=Item%201A.%20Risk%20Factors) This section refers to the detailed risk factors outlined in Part I, 'Item 1A. Risk Factors' of the company's 2022 Annual Report on Form 10-K [Unregistered Sales of Equity Securities and Use of Proceeds](index=83&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company has a **$1.0 billion** common stock repurchase authorization, but no shares were repurchased during the first quarter of 2023 Share Repurchase Activity (Q1 2023) | Period | Total Shares Purchased | Average Price Paid | Remaining Authorization (Approx. $) | | :--- | :--- | :--- | :--- | | Jan 2023 | 0 | N/A | $1,000,000,000 | | Feb 2023 | 0 | N/A | $1,000,000,000 | | Mar 2023 | 0 | N/A | $1,000,000,000 | | **Total** | **0** | **N/A** | **$1,000,000,000** | [Exhibits](index=84&type=section&id=Item%206.%20Exhibits) This section provides an index of all exhibits filed with the Form 10-Q report, including CEO/CFO certifications and Inline XBRL data files

Huntington Bancshares, Inc. (NASDAQ:HBAN) Q1 2023 Earnings Conference Call April 20, 2023 11:00 AM ET Company Participants Tim Sedabres - VP & Head of IR Steve Steinour - Chairman, President & CEO Zach Wasserman - CFO & Senior EVP Rich Pohle - EVP & Chief Credit Officer Conference Call Participants Manan Gosalia - Morgan Stanley John Pancari - Evercore ISI Ebrahim Poonawala - Bank of America Merrill Lynch Scott Siefers - Piper Sandler Erika Najarian - UBS Ken Usdin - Jefferies Jon Arfstrom - RBC Capital ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _________________________________________________________________________________________________________________________________________________________________________ FORM 10-K _________________________________________________________________________________________________________________________________________________________________________ ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchan ...

Huntington Bancshares Inc. (NASDAQ:HBAN) Q4 2022 Results Conference Call January 20, 2023 9:00 AM ET Company Participants Tim Sedabres - Director, IR Steve Steinour - Chairman, President & CEO Zach Wasserman - CFO Rich Pohle - CCO Conference Call Participants Manan Gosalia - Morgan Stanley Steven Alexopoulos - JP Morgan Ken Usdin - Jefferies Erika Najarian - UBS Jon Arfstrom - RBC Capital Markets Scott Siefers - Piper Sandler Matt O'Connor - Deutsche Bank Operator Greetings. Welcome to Huntington Bancshare ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Huntington Bancshares Incorporated (Exact name of registrant as specified in its charter) Maryland 1-34073 31-0724920 (State or other jurisdiction ...

Huntington Bancshares Incorporated (NASDAQ:HBAN) Q3 2022 Earnings Conference Call October 21, 2022 9:00 AM ET Company Participants Tim Sedabres - Director, Investor Relations Steve Steinour - Chairman, President & Chief Executive Officer Zach Wasserman - Chief Financial Officer Rich Pohle - Chief Credit Officer Conference Call Participants Betsy Graseck - Morgan Stanley Scott Siefers - Piper Sandler Steven Alexopoulos - JPMorgan Ken Usdin - Jefferies Jon Arfstrom - RBC Matt O'Connor - Deutsche Bank Erika Na ...

2022 Third Quarter Earnings Review October 21, 2022 The Huntington National Bank is Member FDIC. ®, Huntington® and Huntington. Welcome.® are federally registered service marks of Huntington Bancshares Incorporated. ©2022 Huntington Bancshares Incorporated. Disclaimer 2 CAUTION REGARDING FORWARD-LOOKING STATEMENTS This communication contains certain forward-looking statements, including, but not limited to, certain plans, expectations, goals, projections, and statements, which are not historical facts and a ...

Part I [Financial Statements (Unaudited)](index=41&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents Huntington Bancshares Incorporated's unaudited condensed consolidated financial statements for Q2 2022, including Balance Sheets, Income, Comprehensive Income, Equity, and Cash Flows Condensed Consolidated Balance Sheet Highlights (June 30, 2022 vs. Dec 31, 2021) | Account | June 30, 2022 (in millions) | December 31, 2021 (in millions) | | :--- | :--- | :--- | | **Total Assets** | **$178,782** | **$174,064** | | Net Loans and Leases | $114,147 | $109,237 | | Total Securities (AFS & HTM) | $41,732 | $40,907 | | Goodwill | $5,571 | $5,349 | | **Total Liabilities** | **$160,803** | **$154,746** | | Total Deposits | $145,435 | $143,263 | | **Total Shareholders' Equity** | **$17,979** | **$19,318** | Condensed Consolidated Income Statement Highlights (Three Months Ended June 30) | Account | 2022 (in millions) | 2021 (in millions) | | :--- | :--- | :--- | | Net Interest Income | $1,261 | $838 | | Provision for Credit Losses | $67 | $211 | | Total Noninterest Income | $485 | $444 | | Total Noninterest Expense | $1,018 | $1,072 | | **Net Income (Loss) Attributable to Huntington** | **$539** | **($15)** | - The company adopted new accounting standards ASU 2021-08 (Business Combinations) and ASU 2022-01 (Derivatives and Hedging) during the second quarter of 2022, with no material impact on the consolidated financial statements[212](index=212&type=chunk) - On June 15, 2022, Huntington acquired Capstone Partners, a middle market investment bank, resulting in **$192 million** of goodwill[215](index=215&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=5&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's Q2 2022 financial condition and results, covering operational performance, risk management, capital adequacy, and business segment results [Executive Overview](index=6&type=section&id=Executive%20Overview) The executive overview highlights strong Q2 2022 performance driven by the TCF acquisition and organic growth, despite a decrease in the tangible common equity ratio Q2 2022 vs Q2 2021 Performance | Metric | Q2 2022 | Q2 2021 | Change | | :--- | :--- | :--- | :--- | | Net Income (Loss) | $539M | ($15M) | +$554M | | Diluted EPS | $0.35 | ($0.05) | +$0.40 | | Net Interest Income | $1.3B | $838M | +50% | | Provision for Credit Losses | $67M | $211M | -$144M | - Completed the acquisition of Torana (digital payments) in May 2022 and Capstone Partners (investment bank) in June 2022 to expand payments and advisory services[17](index=17&type=chunk)[18](index=18&type=chunk) - The tangible common equity to tangible assets ratio was **5.80%** at June 30, 2022, down **108 basis points** from December 31, 2021, primarily due to a decrease in AOCI from higher interest rates and the impact of acquisitions[23](index=23&type=chunk) [Discussion of Results of Operations](index=8&type=section&id=Discussion%20of%20Results%20of%20Operations) This section details Q2 2022 financial performance, highlighting a 50% rise in net interest income, a 9% increase in noninterest income, and a 5% decrease in noninterest expense Net Interest Income Drivers (Q2 2022 vs Q2 2021) | Metric | Change | Reason | | :--- | :--- | :--- | | FTE Net Interest Income | +$423 million (+50%) | $33.8 billion increase in average earning assets and 49 bps increase in NIM | | FTE Net Interest Margin (NIM) | 3.15% | Primarily due to Fed rate increases and absence of prior-year unfavorable mark-to-market on interest rate caps | - Noninterest income increased by **$41 million** (9%) YoY, driven by the TCF acquisition's full-quarter impact and a **54%** rise in capital markets fees. This was partially offset by a **$23 million** (34%) decrease in mortgage banking income[54](index=54&type=chunk) - Noninterest expense decreased by **$54 million** (5%) YoY, primarily due to a **$245 million** reduction in acquisition-related expenses, which more than offset the full-quarter impact of the TCF acquisition[60](index=60&type=chunk) - The provision for credit losses was **$67 million**, a decrease of **$144 million** from Q2 2021. The decrease is mainly attributed to the **$294 million** initial provision for the TCF acquisition in the prior-year quarter[50](index=50&type=chunk) [Risk Management and Capital](index=20&type=section&id=Risk%20Management%20and%20Capital) The company maintains a moderate-to-low risk appetite, demonstrating strong credit quality, robust liquidity, and capital ratios well above regulatory minimums - The company's Board of Directors defines its risk appetite as aggregate moderate-to-low, through-the-cycle, focusing on credit, market, liquidity, operational, and compliance risks[67](index=67&type=chunk) Key Risk & Capital Metrics (as of June 30, 2022) | Metric | Value | Note | | :--- | :--- | :--- | | Net Charge-offs (annualized) | 0.03% | Down from 0.28% in Q2 2021 | | Nonperforming Assets (NPA) Ratio | 0.59% | Down from 0.67% at Dec 31, 2021 | | Allowance for Credit Losses (ACL) | 1.87% of loans | Stable vs. 1.89% at Dec 31, 2021 | | CET1 Risk-Based Capital Ratio | 9.05% | Down from 9.33% at Dec 31, 2021 | [Business Segment Discussion](index=35&type=section&id=Business%20Segment%20Discussion) Most business segments showed significant net income growth in H1 2022, with Commercial Banking surging, while Vehicle Finance net income declined due to increased credit loss provisions Net Income by Business Segment (Six Months Ended June 30) | Segment | 2022 Net Income (in millions) | 2021 Net Income (in millions) | Change (in millions) | | :--- | :--- | :--- | :--- | | Commercial Banking | $560 | $167 | +$393 | | Consumer and Business Banking | $205 | $105 | +$100 | | Vehicle Finance | $62 | $161 | -$99 | | RBHPCG | $41 | $37 | +$4 | | Treasury / Other | $131 | $47 | +$84 | - Commercial Banking's net income growth was driven by an **85%** increase in net interest income and a **$218 million** decrease in the provision for credit losses[166](index=166&type=chunk) - Vehicle Finance's net income decreased by **$99 million**, primarily due to a **$132 million** swing in the provision for credit losses, from a benefit of **$53 million** in 2021 to a provision of **$79 million** in 2022[172](index=172&type=chunk) [Additional Disclosures](index=39&type=section&id=Additional%20Disclosures) This section includes standard disclosures, non-GAAP financial measure definitions, critical accounting policies, and an ACL sensitivity analysis under adverse economic scenarios - The company provides a sensitivity analysis for its Allowance for Credit Losses (ACL). A hypothetical 100% weighting to an adverse economic scenario would increase the quantitative ACL by approximately **$900 million** as of June 30, 2022[191](index=191&type=chunk) - The adverse scenario assumes higher inflation and a recession in Q3 2022, with unemployment rates reaching **6.4%** by end-of-2022 and **7.7%** by end-of-2023, significantly higher than the baseline forecasts of **3.3%** and **3.5%**, respectively[190](index=190&type=chunk) - The company uses non-GAAP measures such as Fully-Taxable Equivalent (FTE) basis for net interest income and tangible common equity ratios to provide additional insight into performance and capital adequacy[182](index=182&type=chunk)[183](index=183&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=89&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section refers to the MD&A's Market Risk section for quantitative and qualitative disclosures on market risk, including interest rate and price risk, and derivative usage - Disclosures regarding market risk for the current period are located in the Market Risk section of the MD&A in this report[378](index=378&type=chunk) [Controls and Procedures](index=89&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of June 30, 2022, with no material changes to internal controls - The CEO and CFO concluded that as of June 30, 2022, the company's disclosure controls and procedures were effective[379](index=379&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended June 30, 2022, that have materially affected, or are reasonably likely to materially affect, these controls[380](index=380&type=chunk) Part II [Legal Proceedings](index=89&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine legal and regulatory matters, with an estimated aggregate possible loss of **$0 to $15 million**, not expected to materially affect financial position - For matters where a range of possible loss can be estimated, management estimates the aggregate range of reasonably possible loss is **$0 to $15 million** as of June 30, 2022, in excess of any amounts already accrued[372](index=372&type=chunk) - Management does not believe that current pending matters will have a material adverse effect on the company's consolidated financial position[373](index=373&type=chunk) [Risk Factors](index=89&type=section&id=Item%201A.%20Risk%20Factors) This section highlights a new liquidity risk factor stemming from global economic instability, geopolitical matters, and financial market volatility, which could adversely affect operations - A new risk factor was identified regarding liquidity risks stemming from global economic instability and geopolitical matters[383](index=383&type=chunk) - Specific examples of this risk include uncertain trade negotiations and supply shortages leading to inflation, which could adversely affect the economy and the company's financial results[383](index=383&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=90&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q2 2022, Huntington did not repurchase any common shares, and its **$150 million** share repurchase authorization expired on June 30, 2022 - No shares of common stock were repurchased during the second quarter of 2022[385](index=385&type=chunk) - The company's share repurchase authorization expired on June 30, 2022[386](index=386&type=chunk) [Exhibits](index=91&type=section&id=Item%206.%20Exhibits) This section provides an index of all exhibits filed with the Form 10-Q report, including corporate governance documents, CEO/CFO certifications, and XBRL data - The report includes certifications from the CEO and CFO as required by Rule 13a-14(a) and Section 1350[393](index=393&type=chunk) - Financial statements and notes are formatted in Inline XBRL, with the corresponding taxonomy files also filed as exhibits[392](index=392&type=chunk)

Huntington Bancshares Incorporated (NASDAQ:HBAN) Q2 2022 Earnings Conference Call July 21, 2022 10:00 AM ET Company Participants Tim Sedabres - Director, Investor Relations Steve Steinour - Chairman, President & Chief Executive Officer Zach Wasserman - Chief Financial Officer Rich Pohle - Chief Credit Officer Conference Call Participants John Pancari - Evercore Betsy Graseck - Morgan Stanley Steven Alexopoulos - JPMorgan Ken Usdin - Jefferies Ebrahim Poonawala - Bank of America Jon Arfstrom - RBC Capital Ma ...