Company: HBAN
Filing Date: 2025-04-29
Form Type: 10-Q
Source: 0000049196-25-000038
Chunk: 76

Company: HUNTINGTON BANCSHARES INC /MD/
Filing Date: 2025-04-29
Form: 10-Q
Item: Part I, Item 2
Chunk 76
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9 4.3 -5.8 -12.6 

 The change in sensitivity from December 31, 2024 was driven primarily by market rates and changes to actual balance sheet composition. 

Use of Derivatives to Manage Interest Rate Risk

An integral component of our interest rate risk management strategy is the use of derivative instruments to minimize significant fluctuations in earnings caused by changes in market interest rates. A variety of derivative financial instruments, principally interest rate swaps, swaptions, floors, forward contracts, and forward-starting interest rate swaps, are used in asset and liability management activities to protect against the risk of adverse price or interest rate movements. These instruments provide flexibility in adjusting Huntington’s sensitivity to changes in interest rates without exposure to loss of principal and higher funding requirements.

Table 16 shows all swap and floor positions that are utilized for purposes of managing our exposures to the variability of interest rates. The interest rate variability may impact either the fair value of the assets and liabilities or the cash flows attributable to net interest margin. These positions are used to protect the fair value of asset and liabilities by converting the contractual interest rate on a specified amount of assets and liabilities (i.e., notional amounts) to another interest rate index. The positions are also used to hedge the variability in cash flows attributable to the contractually specified interest rate by converting the variable-rate index into a fixed rate. The volume, maturity, and mix of derivative positions change frequently as we adjust our broader interest rate risk management objectives and the balance sheet positions to be hedged. For further information, including the notional amount and fair values of these derivatives, refer to Note 13 - “Derivative Financial Instruments” of the Notes to Unaudited Consolidated Financial Statements. 

20     Huntington Bancshares Incorporated

The table below presents additional information about the interest rate swaps and floors used in Huntington’s asset and liability management activities.

Table 16 - Information on Asset Liability Management Instruments Weighted-Average Maturity (years)Weighted-AverageFixed Rate(dollar amounts in millions)Notional ValueFair ValueAt March 31, 2025Asset conversion swapsSecurities (1):Pay Fixed - Receive SOFR$10,059 1.67 $299 1.38 %Pay Fixed - Receive SOFR - forward-starting (2)928 7.21 34 2.81 Loans:Receive Fixed - Pay SOFR10,275 2.23 (160)2.94 Receive Fixed