Huntington Bancshares Incorporated operates as a multi-state diversified regional bank holding company for The Huntington National Bank that provides commercial and consumer deposit, lending, and other banking services in the United States. These include, but are not limited to, payments, mortgage banking, direct and indirect consumer financing, investment banking, capital markets, advisory, equipment financing, distribution finance, investment management, trust, brokerage, insurance, and other...
Huntington Bancshares Incorporated operates as a multi-state diversified regional bank holding company for The Huntington National Bank that provides commercial and consumer deposit, lending, and other banking services in the United States. These include, but are not limited to, payments, mortgage banking, direct and indirect consumer financing, investment banking, capital markets, advisory, equipment financing, distribution finance, investment management, trust, brokerage, insurance, and other financial products and services.
The company’s full-service branches and private client group offices are located in Ohio, Colorado, Florida, Illinois, Indiana, Kentucky, Michigan, Minnesota, North Carolina, Pennsylvania, West Virginia, and Wisconsin. The company also maintains a local banking presence in South Carolina and Texas, along with conducting select financial services and other activities in other states.
Business Segments
The key elements of the company’s strategy are to use a consultative and advisory sales approach to provide solutions that are specific to each customer; leverage each business segment in terms of its products and expertise to benefit customers; and develop prospects who may want to have multiple products and services as part of their relationship with it.
Segments
The company operates through two business segments, Consumer & Regional Banking and Commercial Banking, along with the Treasury/Other function.
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 serves its customers through its network of regional banking and national specialty finance channels, including branches and ATMs, online and mobile banking, its customer call centers, and strategic national partnerships.
The company has a Fair Play banking philosophy: providing differentiated products and services, built on a strong foundation of customer friendly products and advocacy. The company’s brand resonates with consumers and businesses, helping it acquire new customers and deepen relationships with current customers. 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 Finance, Regional Banking, Branch Banking, and Wealth Management customers.
Consumer Finance provides direct and indirect consumer loans, as well as dealer finance loans and deposits. 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. 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. In addition, the company’s payments business provides credit and debit cards and treasury management services to its 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 located in Ohio, Colorado, Illinois, Indiana, Kentucky, Michigan, Minnesota, North Carolina, 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.
In addition, the company offers its customers a wide variety of financial solutions, ranging from payment instruments, such as consumer and small business credit and debit cards, payables solutions, including ACH processing and account reconciliation, and receivables solutions, including remote deposit capture, billing services, and lockbox services. The company offers merchant services to its business and commercial customers. The company also offers its customers with money movement services through payment platforms, such as Real-Time Payments (RTP) and Zelle.
Commercial Banking
The Commercial Banking segment provides expertise through bankers, capabilities, and digital channels, which 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 it 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 its 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, Native American financial services, mortgage financial services, fund finance, and global services. The company’s expertise in these markets allows it 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.
Loan Portfolio
The company’s commercial loan portfolio is diversified by product type, customer size, and geography, and consists of the following:
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 it 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. 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. The company mitigates its risk on these loans by requiring collateral values that exceed the loan amount and underwriting the loan with projected cash flow in excess of the debt service requirement. These loans are made to finance properties, such as apartment buildings, office and industrial buildings, and retail shopping centers, and are repaid through cash flows related to the operation, sale, or refinance of the property. Appropriate appraisals are obtained at origination and updated on an as needed basis in compliance with regulatory requirements and the company’s credit policies. 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 include industrial finance, specialty finance, healthcare finance, technology finance, and specialized transportation, franchise, and government.
The consumer portfolio is comprised primarily 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. Applications are underwritten centrally using consistent credit policies and processes. All residential mortgage loan decisions utilize a full appraisal for collateral valuation.
Automobile– Automobile loans are comprised primarily of indirect loans made through automotive dealerships and include exposure in selected states outside of the company’s primary banking markets. The exposure outside of the company’s core footprint states represents 19% of the total exposure, with no individual state representing more than 6% of the total exposure. Applications are underwritten using an automated underwriting system that applies consistent policies and processes across the portfolio.
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. Products include closed-end loans, which are generally fixed-rate with principal and interest payments, and variable-rate, interest-only lines-of-credit which do not require payment of principal during the 10-year revolving period. The home equity line of credit converts to a 20-year amortizing structure at the end of the revolving period. Applications are underwritten centrally in conjunction with an automated underwriting system. The home equity underwriting criteria is based on minimum credit scores, debt-to-income ratios, and LTV ratios, with current collateral valuations.
RV and Marine– RV and marine includes loans provided to consumers primarily for the purpose of financing recreational vehicles and boats. Loans are originated on an indirect basis through a series of dealerships across 35 states. The loans are underwritten centrally using an application and decisioning system similar to automobile loans. The portfolio includes 39% of the balances within the company’s core footprint states.
Other Consumer– Other consumer loans primarily consist of consumer loans, including credit cards, personal unsecured loans, and overdraft balances. The company originates these products within its established set of credit policies and guidelines.
The company’s loan and lease portfolio is a managed mix of consumer and commercial credits. The company manages the overall credit exposure and portfolio composition via a credit concentration policy. The policy designates specific loan types, collateral types, and loan structures to be formally tracked and assigned maximum exposure limits as a percentage of capital. Commercial lending by NAICS categories, specific limits for CRE project types, loans secured by residential real estate, large dollar exposures, and designated high risk loan categories represent examples of specifically tracked components of the company’s concentration management process. The company’s concentration management policy is approved by the ROC and is used to ensure a high quality, well diversified portfolio that is consistent with its overall objective of maintaining an aggregate moderate-to-low risk appetite.
Investment Portfolio
As of December 31, 2024, the company’s investment portfolio included U.S. Treasury; federal agencies, such as residential MBS, residential CMO, and commercial MBS; other agencies; municipal securities; corporate debt; asset-backed securities; private-label CMO; and other securities/sovereign debt.
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 statutory and regulatory framework that governs the company is generally intended to protect depositors and customers, the DIF, the U.S. banking and financial system, and financial markets as a whole.
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.
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. Under the Change in Bank Control Act, a person or entity generally must provide prior notice to the Federal Reserve before acquiring the power to vote 10% or more of the company’s outstanding common stock.
The bank is subject to the Bank Secrecy Act and, therefore, is required to implement compliance policies, procedures, and internal controls, provide its employees with AML training, designate an AML compliance officer, and undergo a periodic independent auditing and testing to assess the effectiveness of its AML program, among other requirements. The bank has implemented an AML compliance program, including policies, procedures, and internal controls that are designed to comply with these AML requirements. Huntington is a BHC under the BHC Act that has elected to be an FHC.
Huntington is subject to primary supervision, regulation, and examination by the Federal Reserve, which serves as the primary regulator of the company’s consolidated organization. The primary regulators of the company’s non-bank subsidiaries directly regulate the activities of those subsidiaries, with the Federal Reserve exercising a supervisory role. Such non-bank subsidiaries include, for example, broker-dealers and investment advisers both registered with the SEC. Like other lenders, the bank and other of the company’s subsidiaries also 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. Similar state laws may impose additional requirements on the company and its subsidiaries.
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. 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 b ank accepts customer deposits that are insured by the DIF and, therefore, must pay insurance premiums.
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.
History
Huntington Bancshares Incorporated was founded in 1866. The company was incorporated under Maryland law in 1966.
