Sean Serhan's questions to HBAN leadership • Q3 2024
Question
Sean Serhan inquired about the strategy and credit outlook for the auto lending business, given increased production and peer commentary, and asked for an update on adjustments to the bank's hedging program.
Answer
CFO Zachary Wasserman described auto lending as a terrific, optimizable asset class with prime credit quality. CCO Brendan Lawlor and CEO Stephen Steinour emphasized that credit performance remains strong and within historical norms due to disciplined underwriting. Regarding hedging, Wasserman explained they are dynamically reducing asset sensitivity by letting options expire, adding forward-starting receivers, and adjusting the securities portfolio.