Company: HBAN
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0000049196-25-000020
Chunk: 23

Company: HUNTINGTON BANCSHARES INC /MD/
Filing Date: 2025-02-14
Form: 10-K
Item: Item 8
Chunk 23
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 determining how much of a valuation allowance is recognized on a quarterly basis. In determining the requirements for a valuation allowance, sources of possible taxable income are evaluated including future reversals of existing taxable temporary differences, future taxable income exclusive of reversing temporary differences and carryforwards, taxable income in appropriate carryback years, and tax-planning strategies. Huntington applies a more likely than not recognition threshold for all tax uncertainties.Share-Based Compensation — Huntington uses the fair value based method of accounting for awards of HBAN stock granted to employees under various share-based compensation plans. Share-based compensation costs are recognized prospectively for all new awards granted under these plans. Compensation expense relating to stock options is calculated using a methodology that is based on the underlying assumptions of the Black-Scholes option pricing model and is charged to expense over the requisite service period (e.g., vesting period) taking into account retirement eligibility. Compensation expense relating to restricted stock awards is based upon the fair value of the awards on the date of grant and is charged to earnings over the requisite service period (e.g., vesting period) taking into account the retirement eligibility of the award.Stock Repurchases — Acquisitions of Huntington stock are recorded at cost.

2024 Form 10-K     107

Table of Contents

2. ACCOUNTING STANDARDS UPDATE

Accounting standards adopted in the current periodStandardSummary of guidanceEffects on financial StatementsASU 2023-02 - Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method •Permits the election of the proportional amortization method for any tax equity investment that meets specific criteria. •Requires that the election be made on a tax-credit-program-by-tax-credit-program basis.•Receipt of tax credits must be accounted for using the flow through method.•Requires that a liability be recorded for delayed equity contributions. •Expands disclosure requirements for the nature of investments and financial statement effect. •Huntington adopted the standard effective January 1, 2024 on a modified retrospective basis.                                                                         •The adoption did not result in a material impact on Huntington’s Consolidated Financial Statements.ASU 2023-07 - Segment Reporting (Topic 280): Improvement to Reportable Segments•Requires disclosure of the position and title of the CODM and significant segment expenses that the CODM is regularly provided.      •Requires the disclosure of other segment items representing the difference between segment revenue and expense and the profit and loss measure of the segment.   •Allows for