Company: HBAN
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0000049196-25-000079
Chunk: 233

Company: HUNTINGTON BANCSHARES INC /MD/
Filing Date: 2025-10-28
Form: 10-Q
Item: Part I, Item 8
Chunk 233
---
 do not have recourse to the general assets of Huntington.The economic performance of the VIE is most significantly impacted by the performance of the underlying loans. The VIE is exposed to credit and prepayment risk, which are managed through credit enhancements in the form of reserve accounts, over-collateralization, excess interest on the loans, and the subordination of certain classes of asset-backed securities.Consolidated VIEs at September 30, 2025 and December 31, 2024 also included investments in LIHTC operating entities that were syndicated and where we serve as the general partner and manager. As manager of these entities, we have the power to direct the activities that most significantly impact economic performance, as well as an obligation to absorb significant expected losses, of the entities.Unconsolidated VIEsThe following tables provide a summary of the assets and liabilities included in Huntington’s Unaudited Consolidated Financial Statements, as well as the maximum exposure to losses, associated with its interests related to unconsolidated VIEs for which Huntington holds an interest in, but is not the primary beneficiary.(dollar amounts in millions)Total AssetsTotal LiabilitiesMaximum Exposure to LossAt September 30, 2025Affordable housing tax credit partnerships$2,469 $1,017 $2,469 Trust preferred securities14 248 — Other investments1,367 180 1,367 Total$3,850 $1,445 $3,836 At December 31, 2024Affordable housing tax credit partnerships$2,382 $1,065 $2,382 Trust preferred securities14 248 — Other investments1,201 168 1,201 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