The documents indicate that there is **no specific explanation** provided for the sharp decline in cash in Q1 2024. However, it is noted that fluctuations like these are **typically influenced by operational cash flow needs, changes in deposit levels, loan growth, or adjustments in liquidity management strategies**. Additionally, the documents mention that there was a **28% increase** in interest-earning deposits with banks during the same period, which suggests a **potential reallocation** of cash into these higher-yield accounts.  **[0000049196-24-000042_hban20240331_8kex992.htm:2]** **[0000049196-24-000035_hban20240331_8kex992.htm:2]** **[0000049196-24-000047_hban-20240331.htm:38]** 

Why did cash drop so sharply in Q1 2024?

The documents indicate that HBAN’s Q4 2024 Trading account securities were affected by a **$1 billion securities repositioning** initiative, during which corporate securities were sold to unlock capital for reinvestment into higher-yield opportunities. This broad portfolio adjustment appears to have been influenced by prevailing **market conditions**, **portfolio management strategies**, and **liquidity needs**. However, the documents do not provide a definitive explanation for the surge and only highlight these potential contributing factors.  **[HBAN_3412797_17]** **[0000049196-25-000006_hban20241231_8kex992.htm:4]** 

What drove the sudden surge in Trading account securities in Q4 2024?

In Q1 2024, the notable increase in interest-earning deposits was primarily due to an increase in average deposits with banks, which contributed to the overall growth in average earning assets for the quarter.  **[0000049196-24-000047_hban-20240331.htm:7]** **[0000049196-24-000035_hban20240331_8kex991.htm:3]** 

What caused the notable increase in interest-earning deposits in Q1 2024?

The dramatic change in Q4 2024 was primarily driven by a **substantial reduction in securities sold under agreements to repurchase**. Specifically, repurchase agreements declined from **$618 million** in 2023 to **$142 million** in 2024, while **other borrowings** increased slightly from **$2 million** to **$57 million**. This shift in funding sources led to the overall change in short-term borrowings in Q4 2024.  **[0000049196-25-000020_hban-20241231.htm:172]** 

Why did short-term borrowings spike so dramatically in Q4 2024?

The available documents do not provide a definitive explanation for the massive jump in **Other securities** in Q4 2024. They do, however, note that the **quarterly average balance** increased from **$727 million** in Q4 2023 to **$824 million** in Q4 2024 and that the **year-end balance** increased from **$725 million** to **$823 million**, representing approximately a **13-14% year-over-year increase**.  **[0000049196-25-000006_hban20241231_8kex992.htm:8]** **[0000049196-25-000006_hban20241231_8kex992.htm:4]** **[0000049196-25-000020_hban-20241231.htm:135]**  Although no specific causes are cited, these changes typically result from adjustments in the bank’s investment portfolio, such as the purchase of additional securities or reclassifications.

What explains the massive jump in Other securities by Q4 2024?

14f8c6b556a9f35a5e5e6903671c9555b8f20b07b9a40331d76b2a83bfbe97b2

The **Total Interest Expense** was so high in Q1 2024 primarily because of **higher deposit costs**, **increased long-term debt costs**, and a **shift in the funding mix**. Specifically, interest expense on deposits surged to **$857 million** from **$406 million** (a **111% increase**), and interest expense on long-term debt increased from **$153 million** to **$217 million** (a **42% increase**), driven by higher rates in a rising interest rate environment. These factors collectively contributed to the significant rise in Total Interest Expense for the quarter.  **[0000049196-24-000047_hban-20240331.htm:39]** **[0000049196-24-000042_hban20240331_8kex992.htm:10]** 

Why was Total Interest Expense so high in Q1 2024?

The decline in Net Interest Income after Provision for Credit Losses in Q1 2024 was primarily driven by two factors. **First**, there was a **$122 million (9%) drop in net interest income** due to a **39 basis point decrease** in the net interest margin to **3.01%**, along with a **10% increase in average interest-bearing liabilities** that was only partly offset by a **3% rise in average earning assets**. **Second**, the provision for credit losses increased by **$22 million (26%)** to **$107 million**. Together, these changes led to an overall decline of **$144 million (11%)** compared to Q1 2023.  **[0000049196-24-000047_hban-20240331.htm:5]** **[0000049196-24-000047_hban-20240331.htm:4]** 

What led to the decline in Net Interest Income after Provision for Credit Losses in Q1 2024?

The drop in **Income after Income Taxes** in Q1 2024 was driven by several factors. **Lower Net Interest Income** played a major role, marked by a decline of **$122 million** due to a **39 basis point drop in the net interest margin** and increased average interest-bearing liabilities. Additionally, the **Provision for Credit Losses** rose by **$22 million**, impacting the bottom line. **Noninterest Income** also fell, notably because the Q1 2023 gain of **$57 million** from the sale of the RPS business was not repeated in Q1 2024, while **Noninterest Expenses** increased by **$51 million** due to costs such as a **$32 million FDIC DIF special assessment expense** along with higher spending on professional services and marketing. Finally, even though the **Provision for Income Taxes** decreased by **$58 million**, it was not enough to counterbalance the declines elsewhere, contributing to an overall decrease of **$182 million (30%)** in income after taxes.  **[0000049196-24-000047_hban-20240331.htm:4]** **[0000049196-24-000047_hban-20240331.htm:5]** **[0000049196-24-000047_hban-20240331.htm:4]** **[0000049196-24-000047_hban-20240331.htm:9]** 

Why did Income after Income Taxes drop in Q1 2024?

The net income attributable to Huntington fell in Q1 2024 primarily due to several factors. The bank incurred a **$32 million FDIC special assessment expense** (or **$25 million after tax**, about **$0.02 per common share**), along with a **$7 million staffing efficiency-related expense** (or **$5 million after tax**). Additionally, there was a **$45 million decline in noninterest income (9%)**, a **$22 million increase (26%) in the provision for credit losses**, and a **$51 million increase in noninterest expense (5%)**. Moreover, the positive impact of a **$57 million gain (or $44 million after tax; $0.03 per common share) from the prior-year sale of the RPS business** was absent in Q1 2024, further contributing to the decline.  **[0000049196-24-000047_hban-20240331.htm:4]** 

What caused Net Income Attributable to Huntington to fall in Q1 2024?

3cda065a4961087f1267a57e0a52e0b93cb040f14c44379568453585175b79bc

Operating cash flow in Q3 2024 turned negative due to a combination of factors. **Net income declined**, reducing the overall cash generation from operations. In addition, there were **significant adverse changes in working capital components**, notably a substantial negative swing in **other liabilities**, outflows in **other assets**, and a larger negative impact from **trading account securities**. These factors together contributed to turning operating cash flow negative in Q3 2024.  **[0000049196-24-000095_hban-20240930.htm:44]** 

Why did operating cash flow turn negative in Q3 2024?

The drastic swing in proceeds from sales of available-for-sale securities in Q4 2024 was primarily caused by the sale of approximately **$1 billion of corporate debt investment securities**. This strategic transaction not only resulted in a significant change in the proceeds figures, but it also impacted pre-tax income by reducing it by **$21 million** (or **$0.01 on an after-tax EPS basis**), reflecting a deliberate adjustment in the company's investment portfolio to manage risk and optimize returns.  **[0000049196-25-000020_hban-20241231.htm:139]** **[20250117CL98869:0]** **[0000049196-25-000006_hban20241231_8kex991.htm:0]** 

What caused the drastic swing in proceeds from sales of available-for-sale securities in Q4 2024?

The reversal in the deferred income tax value in Q4 2024 was primarily driven by a significant reduction in the benefit from federal deferred tax provisions—from a benefit of **$(291) million in 2023** to **$(24) million in 2024**—along with a similar change in the state deferred tax provision, which decreased from a benefit of **$(11) million in 2023** to **$(2) million in 2024**. Additionally, the effect of **general business credits** of **$(271) million** and **tax-exempt income** of **$(29) million** helped reduce the overall tax liability, while the increase in **affordable housing investment amortization, net of tax benefits** to **$193 million in 2024** (up from **$148 million** in 2023) also influenced the deferred tax calculations.  **[0000049196-25-000020_hban-20241231.htm:186]** **[0000049196-25-000020_hban-20241231.htm:187]** 

Why did the deferred income tax value reverse in Q4 2024?

43c8e2b279d01fc1103eff585216eb6589b96e636ff9517c81eaa154a35e085f

7d44f0a68546a63de79f643cbc9b4e8dd8c642303f3f8520bdd12d7540676528

Total Interest Income (USD, millions)

Total Interest Expense (USD, millions)

Net Interest Income (USD, millions)

Provision for Credit Losses (USD, millions)

Net Interest Income after Provision for Credit Losses (USD, millions)

Total Noninterest Income (USD, millions)

Total Noninterest Expense (USD, millions)

Income before Income Taxes (USD, millions)

Provision for Income Taxes (USD, millions)

Income after Income Taxes (USD, millions)

Income Attributable to Non-Controlling Interest (USD, millions)

Net Income Attributable to Huntington (USD, millions)

Dividends on Preferred Shares (USD, millions)

Net Income Applicable to Common Shares (USD, millions)

5f0327a3de2ed59de958150b4a7d624738d5c110e9afcde3bd615d9c410455b9

Cash and due from banks (USD, millions)

Interest-earning deposits with banks (USD, millions)

Trading account securities (USD, millions)

Available-for-sale securities (USD, millions)

Held-to-maturity securities (USD, millions)

Other securities (USD, millions)

Loans held for sale (USD, millions)

Loans and leases (USD, millions)

Allowance for loan and lease losses (USD, millions)

Net loans and leases (USD, millions)

Bank owned life insurance (USD, millions)

Accrued income and other receivables (USD, millions)

Premises and equipment (USD, millions)

Goodwill (USD, millions)

Servicing rights and other intangible assets (USD, millions)

Other assets (USD, millions)

Total assets (USD, millions)

Demand deposits—noninterest-bearing (USD, millions)

Interest-bearing deposits (USD, millions)

Total deposits (USD, millions)

Short-term borrowings (USD, millions)

Long-term debt (USD, millions)

Other liabilities (USD, millions)

Total liabilities (USD, millions)

Preferred stock (USD, millions)

Common stock (USD, millions)

Capital surplus (USD, millions)

Less treasury shares, at cost (USD, millions)

Accumulated other comprehensive income (loss) (USD, millions)

Retained earnings (USD, millions)

Total Huntington shareholders’ equity (USD, millions)

Non-controlling interest (USD, millions)

Total equity (USD, millions)

Total liabilities and equity (USD, millions)

6cdf5bc74795551882084867e36eecfeb2d02cc463ee927bfc1bd04658d2aabf

98bd71049cf86a0c6e79d0a151268804847ab9356a396e87db92586d917571d7

960a650e8834f0028e52c3a68ef9a1ba58039470285faeb618a2c43b2661be41

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

2ff895ada94653b75e449fe87c8ec6f591f69905e6645326a5f8792c33b0666c

Number of full-service branches (count)

Number of employees for Consumer & Regional Banking (count)

Number of employees for Commercial Banking (count)

Number of employees total (count)

Percentage of insured deposits (percentage)

Nonperforming assets ratio (percentage)

Nonaccrual loans and leases as a percentage of total loans and leases (percentage)

Net charge-offs as a percentage of average loans and leases (percentage)

Net charge-offs as a percentage of average commercial loans and leases (percentage)

Net charge-offs as a percentage of average consumer loans and leases (percentage)

b995485f4b2326fe60e63db7279712882072354c180abc1f2cfdfd0fddbfbc3b

Consumer & Business Banking

- Payments and Cash Management

- Wealth and Asset Management

- Customer Deposit and Loan Fees

- Capital Markets and Advisory Fees

- Leasing Revenue

- Insurance Income

- Other Noninterest Income

- Net Revenue from Contracts

- Noninterest Income (Other GAAP)

- Total Noninterest Income

Commercial Banking

Treasury / Other

Huntington Consolidated

Total Revenue

d0fb0748ab72c2d43aa6970197611be08dc7eae6cc1723aed325b58689769995

HUNTINGTON BANCSHARES INC /MD/ (HBAN)

Financials