HUNTINGTON BANCSHARES DEP(HBANM) - 2025 Q1 - Quarterly Report

PART I. FINANCIAL INFORMATION Item 1. Financial Statements (Unaudited) Presents the unaudited consolidated financial statements for the quarter ended March 31, 2025 Key Financial Statement Data (Q1 2025 vs. YE 2024) | Metric | At March 31, 2025 (in millions) | At December 31, 2024 (in millions) | | :--- | :--- | :--- | | Balance Sheet | | | | Total Assets | $209,596 | $204,230 | | Net Loans and Leases | $130,242 | $127,798 | | Total Deposits | $165,337 | $162,448 | | Total Liabilities | $189,110 | $184,448 | | Total Shareholders' Equity | $20,434 | $19,740 | | Income Statement (Q1 2025 vs Q1 2024) | | | | Net Interest Income | $1,426 | $1,287 | | Net Income Attributable to Huntington | $527 | $419 | | Diluted Earnings Per Share | $0.34 | $0.26 | Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Provides management's perspective on financial condition, operational results, risk management, and capital adequacy Executive Overview Reports a 26% YoY increase in net income to $527 million, driven by higher interest and noninterest income Q1 2025 vs. Q1 2024 Financial Highlights | Metric | Q1 2025 | Q1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Net Interest Income | $1,426M | $1,287M | +11% | | Noninterest Income | $494M | $467M | +6% | | Noninterest Expense | $1,152M | $1,137M | +1% | | Net Income Attributable to Huntington | $527M | $419M | +26% | | Diluted EPS | $0.34 | $0.26 | +31% | | Return on Average Assets | 1.04% | 0.89% | - | | Net Interest Margin (FTE) | 3.10% | 3.01% | - | - Total assets increased by $5.4 billion (3%) to $209.6 billion at March 31, 2025, compared to year-end 2024, driven by growth in loans and interest-earning deposits with banks[24] - The Common Equity Tier 1 (CET1) risk-based capital ratio was 10.6% at March 31, 2025, up from 10.5% at December 31, 2024[25] Discussion of Results of Operations Analyzes financial performance, including an 11% rise in net interest income and a 6% increase in noninterest income Risk Management Details the management of credit, market, liquidity, and operational risks within a Board-approved framework Capital Details the capital management strategy, strong capital ratios, and a new share repurchase program Regulatory Capital Ratios | Ratio | At March 31, 2025 | At December 31, 2024 | | :--- | :--- | :--- | | Consolidated | | | | CET1 risk-based capital | 10.6% | 10.5% | | Tier 1 risk-based capital | 11.9% | 11.9% | | Total risk-based capital | 14.3% | 14.3% | | Bank | | | | CET1 risk-based capital | 11.8% | 11.6% | | Tier 1 risk-based capital | 12.6% | 12.4% | | Total risk-based capital | 14.3% | 14.1% | - On April 16, 2025, the Board approved a new share repurchase authorization of up to $1.0 billion of common shares, with no expiration date[154] - Shareholders' equity increased to $20.4 billion at March 31, 2025, up $694 million from year-end 2024, primarily due to improved AOCI and retained earnings[152] Business Segment Discussion Breaks down performance by the Consumer & Regional Banking and Commercial Banking segments Net Income by Business Segment (Q1 2025 vs Q1 2024) | Business Segment | Q1 2025 Net Income (Loss) | Q1 2024 Net Income (Loss) | | :--- | :--- | :--- | | Consumer & Regional Banking | $319M | $348M | | Commercial Banking | $236M | $242M | | Treasury / Other | ($28M) | ($171M) | | Total Net Income | $527M | $419M | Additional Disclosures Covers forward-looking statements, non-GAAP measures, and critical accounting policies like the Allowance for Credit Losses - The company's critical accounting policies include the allowance for credit losses (ACL) and goodwill, with the ACL estimate highly dependent on macroeconomic forecasts[181][183] - A hypothetical sensitivity analysis shows an adverse economic scenario would increase the quantitative ACL by approximately $0.8 billion, excluding qualitative adjustments[186][187] Item 3. Quantitative and Qualitative Disclosures about Market Risk Refers to the MD&A section for quantitative and qualitative disclosures on market risk - Disclosures for this item are provided in the Market Risk section of the MD&A in this report[381] Item 4. Controls and Procedures Confirms the effectiveness of disclosure controls and procedures as of March 31, 2025 - The CEO and CFO concluded that as of March 31, 2025, the company's disclosure controls and procedures were effective[382] - There were no material changes in internal control over financial reporting during the first quarter of 2025[383] PART II. OTHER INFORMATION Item 1. Legal Proceedings Indicates routine legal matters are not expected to have a material adverse financial effect - For matters where a range of possible loss can be estimated, management currently estimates the aggregate range of reasonably possible loss is $0 to $15 million in excess of any accrued liability[374] - Management does not believe that loss contingencies from pending matters will have a material adverse effect on the company's consolidated financial position[376] Item 1A. Risk Factors Refers to the 2024 Annual Report on Form 10-K for a comprehensive discussion of risk factors - The report refers to the risk factors detailed in the 2024 Annual Report on Form 10-K[386] Item 2. Unregistered Sales of Equity Securities and Use of Proceeds This item is reported as not applicable for the period - Not Applicable[387] Item 5. Other Information Discloses the adoption of a Rule 10b5-1(c) trading plan by the General Counsel - On March 13, 2025, General Counsel Marcy Hingst adopted a Rule 10b5-1(c) trading plan for the sale of up to 54,800 shares of common stock[388] Item 6. Exhibits Provides an index of all exhibits filed with or incorporated by reference into the Form 10-Q