Company: HBAN
Filing Date: 2025-04-29
Form Type: 10-Q
Source: 0000049196-25-000038
Chunk: 69

Company: HUNTINGTON BANCSHARES INC /MD/
Filing Date: 2025-04-29
Form: 10-Q
Item: Part I, Item 2
Chunk 69
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, 2025 and December 31, 2024, respectively. 

With declines in demand and property values of office space across the country, the office sector continues to be an area of uncertainty. Our office portfolio, which is predominantly suburban and multi-tenant loans, totaled $1.6 billion, or 1% of total loans and leases, at both March 31, 2025 and December 31, 2024. We have established ACL reserves of approximately 11% for our CRE office portfolio at both March 31, 2025 and December 31, 2024. As of March 31, 2025, there was $15 million of outstanding balances in the office portfolio that were 30 or more days past due.

Credit Quality

(This section should be read in conjunction with Note 4 - “Loans and Leases” and Note 5 - “Allowance for Credit Losses” of the Notes to Unaudited Consolidated Financial Statements.)

We believe the most meaningful way to assess overall credit quality performance is through an analysis of specific performance ratios. This approach forms the basis of the discussion in the sections immediately following: NALs and NPAs, ACL, and NCOs. In addition, we utilize delinquency rates, risk distribution and migration patterns, product segmentation, and origination trends in the analysis of our credit quality performance.

Credit quality performance in the first quarter of 2025 reflected NCOs of $86 million, or 0.26% of average total loans and leases, annualized, a decrease of $6 million, compared to $92 million, or 0.30%, in the year-ago quarter. The decrease reflects an $11 million decrease in commercial NCOs to $44 million, partially offset by a $5 million increase in consumer NCOs to $42 million in the first quarter of 2025. NPAs decreased from December 31, 2024 by $18 million, or 2%, primarily driven by a $44 million decrease in commercial and industrial NALs, partially offset by a $17 million increase in other NPAs.

2025 1Q Form 10-Q     15

NALs and NPAs

The following table presents the detail of our NALs and NPAs.

Table 10 - Nonaccrual Loans and Leases and Nonperforming Assets(dollar amounts in millions)At March 31, 2025At December 31, 202