Company: HBAN
Filing Date: 2025-04-29
Form Type: 10-Q
Source: 0000049196-25-000038
Chunk: 82

Company: HUNTINGTON BANCSHARES INC /MD/
Filing Date: 2025-04-29
Form: 10-Q
Item: Part I, Item 2
Chunk 82
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 an improvement in unrealized losses on available-for-sale securities and an increase in trading securities. At March 31, 2025, the duration of the investment securities portfolio, net of hedging, was 3.8 years. Securities are pledged to secure borrowing capacity with the FHLB and the Federal Reserve, discussed further in the Bank Liquidity and Sources of Funding section below. 

Bank Liquidity and Sources of Funding

Our primary source of funding for the Bank is customer deposits. At March 31, 2025, customer deposits funded 75% of total assets (119% of total loans and leases). To the extent we are unable to obtain sufficient liquidity through customer deposits, cash and cash equivalents, and investment securities, we may meet our liquidity needs through sources of wholesale funding and asset securitization or sale. Additionally, the Bank may also access funding through intercompany notes or parent company deposits placed at the Bank.

The Bank maintains borrowing capacity at both the FHLB and the FRB secured by pledged loans and securities. The Bank does not consider borrowing capacity at the FRB a primary source of funding; however, it could be used as a potential source of liquidity in a stressed environment or during a market disruption. The amount of available contingent borrowing capacity may fluctuate based on the level of borrowings outstanding and level of assets pledged.

A summary of the Bank’s primary contingent liquidity sources is presented in the following table.

Table 18 - Selected Contingent Liquidity Sources(dollar amounts in millions)At March 31, 2025At December 31, 2024Unused secured borrowing capacity:FRB$67,235 $70,020 FHLB15,827 15,524 Unpledged investment securities (at market value)10,650 5,786 Interest-earning deposits held at FRB13,712 11,162 Primary contingent liquidity sources$107,424 $102,492 

As of March 31, 2025, we believe the Bank has sufficient liquidity and capital resources to meet its cash flow obligations over the next 12 months and for the foreseeable future.

Parent Company Liquidity

The parent company’s funding requirements consist primarily of dividends to shareholders, debt service, income taxes, operating expenses, funding of nonbank subsidiaries, repurchases of our stock, and acquisitions. The parent company obtains funding to meet obligations from dividends and interest received from the Bank, interest and dividends received from direct subsidiaries, net taxes collected from subsidiaries