Company: HBAN
Filing Date: 2025-04-29
Form Type: 10-Q
Source: 0000049196-25-000038
Chunk: 146

Company: HUNTINGTON BANCSHARES INC /MD/
Filing Date: 2025-04-29
Form: 10-Q
Item: Part I, Item 2
Chunk 146
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201 Total$3,597 $1,481 $3,583 Affordable Housing and Other Tax Credit InvestmentsHuntington makes certain equity investments in various limited partnerships that sponsor affordable housing projects utilizing the LIHTC pursuant to Section 42 of the Internal Revenue Code. The purpose of these investments is to achieve a satisfactory return on capital, to facilitate the sale of additional affordable housing product offerings, and to assist in achieving goals associated with the Community Reinvestment Act. The primary activities of the limited partnerships include the identification, development, and operation of multi-family housing that is leased to qualifying residential tenants. Generally, these types of investments are funded through a combination of debt and equity.Huntington uses the proportional amortization method to account for a majority of its investments in these entities. These investments are included in other assets. Investments that do not meet the requirements of the proportional amortization method are accounted for using the equity method. Investment losses are included in Other noninterest income in the Unaudited Consolidated Statements of Income.

2025 1Q Form 10-Q     75

The following table presents the balances of Huntington’s affordable housing tax credit investments and related unfunded commitments.(dollar amounts in millions)At March 31, 2025At December 31, 2024Affordable housing tax credit investments$3,702 $3,628 Less: amortization(1,289)(1,246)Net affordable housing tax credit investments$2,413 $2,382 Unfunded commitments$1,024 $1,065 The following table presents other information relating to Huntington’s affordable housing tax credit investments.Three Months Ended(dollar amounts in millions)March 31, 2025March 31, 2024Tax credits and other tax benefits recognized$86 $76 Proportional amortization expense included in provision for income taxes70 63 There were no sales of affordable housing tax credit investments during the three-month periods ended March 31, 2025 and 2024. There was no impairment recognized for the three-month periods ended March 31, 2025 and 2024. Trust-Preferred SecuritiesHuntington has certain wholly-owned trusts whose assets, liabilities, equity, income, and expenses are not included within Huntington’s Unaudited Consolidated Financial Statements. These trusts have been formed for the sole purpose of issuing trust-preferred securities, from which the proceeds are then invested in Huntington junior subordinated debentures, which