Company: HBAN
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0000049196-25-000020
Chunk: 176

Company: HUNTINGTON BANCSHARES INC /MD/
Filing Date: 2025-02-14
Form: 10-K
Item: Item 7
Chunk 176
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 Condition and Results of Operations” Discussion of Results of Operations included in our 2023 Form 10-K, filed with the SEC on February 16, 2024. 

Average Balance Sheet / Net Interest Income

Our primary source of revenue is net interest income, which is the difference between interest income from earning assets (primarily loans and leases and securities), and interest expense from funding sources (primarily interest-bearing deposits and borrowings). Earning asset balances and related funding sources, as well as changes in the levels of interest rates, impact net interest income. The difference between the average yield on earning assets and the average rate paid for interest-bearing liabilities is the net interest spread. Noninterest-bearing sources of funds, such as demand deposits and shareholders’ equity, also support earning assets. The impact of the noninterest-bearing sources of funds, often referred to as “free” funds, is captured in the net interest margin, which is calculated as net interest income divided by average earning assets. Both the net interest margin and net interest spread are presented on an FTE basis, which means that tax-free interest income has been adjusted to a pretax equivalent income, assuming a 21% tax rate. Information related to major components of our net interest income (FTE) and related yields are presented on the following table.

50     Huntington Bancshares Incorporated

Table of Contents

Table 2 - Consolidated Average Balance Sheet and Net Interest Margin Analysis Year Ended December 31,20242023AverageInterest Income/ExpenseYield/AverageInterest Income/ ExpenseYield/Change in Average Balances(dollar amounts in millions)Balances(FTE) (1)Rate (2)Balances(FTE) (1)Rate (2)AmountPercentAssets:Interest-earning deposits with banks$11,113 $598 5.38 %$9,309 $492 5.30 %$1,804 19 %Securities:Trading account securities265 13 5.04 77 4 5.14 188 244 Available-for-sale securities:Taxable24,232 1,251 5.16 20,539 1,016 4.95 3,693 18 Tax-exempt2,779 141 5.08 2,720 132 4.84 59 2 Total available-for-sale securities27,011 1,392 5.15 23,259 1,148 4