Acquisitions and Market Expansion - Huntington completed the acquisition of TCF Financial Corporation for $7.2 billion, enhancing market scale and capabilities[20] - In May 2022, Huntington acquired Torana, now Huntington Choice Pay, to accelerate digital payments capabilities[21] - Huntington's market share in Columbus, OH is 37%, ranking 1st in deposits[60] Community Commitment and Support - Huntington's Community Plan includes a commitment of $40 billion over five years to support small businesses and economic justice[40] - The company committed $100 million to the Lift Local Business® program, aiding minority-, woman-, and veteran-owned small businesses[40] - Huntington committed $24 billion in affordable housing financing and consumer lending[44] - The company has allocated $16 billion for Diversity, Equity, and Inclusion initiatives to advance systemic change[44] - Huntington colleagues provided over 35,000 volunteer hours to more than 1,300 organizations in 2022[48] Employee Engagement and Culture - In 2022, Huntington had an average of 19,920 full-time equivalent employees, emphasizing a culture of inclusiveness[43] - 87% of colleagues responded favorably regarding trust, with 82% recommending Huntington as a great place to work[46] - Minimum hourly pay rate increased from $19 to $20 effective January 1, 2023[50] - As of December 31, 2022, 47% of middle, senior, and executive management levels were diverse, with the total workforce being 67% diverse[54] - Colleagues completed approximately 35 training hours on average, a 14% increase year over year[49] Financial Health and Capital Ratios - Huntington's CET1 Risk-Based Capital Ratio as of December 31, 2022, was 9.36%, exceeding the minimum requirement of 4.50%[87] - The Tier 1 Risk-Based Capital Ratio for Huntington was 10.90% as of December 31, 2022, above the minimum requirement of 6.00%[87] - Huntington's Total Risk-Based Capital Ratio stood at 13.09% as of December 31, 2022, surpassing the minimum requirement of 8.00%[87] - The Tier 1 Leverage Ratio for Huntington was 8.60% as of December 31, 2022, exceeding the minimum requirement of 4.00%[87] - Huntington's SCB (Stress Capital Buffer) is set at 3.3% for the period from October 1, 2022, to September 30, 2023[84] Regulatory Compliance and Risks - Huntington is subject to extensive regulation and supervision by various federal and state regulators[63] - The company must obtain prior approval from the Federal Reserve for any acquisition resulting in ownership of 5% or more of voting securities[76] - The Bank is subject to a CCB (Capital Conservation Buffer) of 2.5%[84] - Huntington is required to maintain a capital plan reviewed by the Federal Reserve as part of the CCAR (Comprehensive Capital Analysis and Review) process[92] - The Federal Reserve may require Huntington to maintain capital ratios substantially above mandated minimum levels based on economic conditions and risk profile[82] Economic and Competitive Environment - Economic uncertainties, including inflation and rising interest rates, could adversely affect the company's financial condition and results of operations[141] - The company faces increased competition from larger financial institutions and non-bank competitors, which may impact its ability to attract and retain customers[152] - Rising interest rates could reduce the value of fixed-rate securities held by the company, impacting its capital ratios[147] - A reduction in credit ratings could adversely affect Huntington's access to capital and increase the cost of funds, impacting growth and profitability[165] Cybersecurity and Operational Risks - Cybersecurity risks have significantly increased due to the proliferation of new technologies and the sophistication of cyber-attacks, which could result in material losses[171] - The risk of security breaches caused by cyber-attacks at vendors has increased, and Huntington may be held responsible for incidents attributed to its vendors[172] - Operational risks exist due to reliance on third-party systems, which could disrupt business and adversely impact liquidity and financial condition[168] - The company faces significant operational risks, including fraud, unauthorized transactions, and system failures, which could lead to financial loss and loss of confidence from customers and regulators[177] Legislative and Regulatory Changes - The current administration's regulatory reform agenda may focus on consumer protection, fair lending, and increased capital and liquidity requirements, which could affect business operations[197] - Legislative and regulatory changes could impose additional compliance costs and operational complexities, adversely affecting the company's financial condition and results of operations[195] - Noncompliance with the Bank Secrecy Act and anti-money laundering regulations could lead to significant financial losses and regulatory penalties[200] Strategic Management and Leadership - The success of the strategic plan relies on the management team's skills, and the loss of key personnel could adversely affect business operations[205] - Regulatory actions could materially affect financial results, competitive positioning, and the ability to pursue mergers or acquisitions[209] - Damage to reputation from various sources could significantly harm business prospects and financial condition[212]
HUNTINGTON BANCS(HBANL) - 2022 Q4 - Annual Report