Company: HBAN
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0000049196-25-000020
Chunk: 93

Company: HUNTINGTON BANCSHARES INC /MD/
Filing Date: 2025-02-14
Form: 10-K
Item: Item 8
Chunk 93
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. These activity-based costs are then extended, based on volumes, with the resulting amount allocated to business segments that own the related products. The second phase consists of the allocation of overhead costs to the business segments from Treasury / Other. Huntington utilizes a full-allocation methodology, where all Treasury / Other expenses, except reported acquisition-related net expenses, if any, and a small amount of other residual unallocated expenses, are allocated to the business segments.The management policies and processes utilized in compiling segment financial information are highly subjective and, unlike financial accounting, are not based on authoritative guidance similar to GAAP. As a result, reported segment results are not necessarily comparable with similar information reported by other financial institutions. Furthermore, changes in management structure or allocation methodologies and procedures result in changes in reported segment financial data. Huntington uses an active and centralized FTP methodology to attribute appropriate net interest income to the business segments. The intent of the FTP methodology is to transfer interest rate risk from the business segments by providing modeled duration funding of assets and liabilities. The result is to centralize the financial impact, management, and reporting of interest rate risk in the Treasury / Other function where it can be centrally monitored and managed. The Treasury / Other function charges (credits) an internal cost of funds for assets held in (or pays for funding provided by) each business segment. The FTP rate is based on prevailing market interest rates for comparable duration assets (or liabilities). The primary components of the FTP rate include a base (market) rate, a liquidity premium, contingent liquidity and collateral charges, and option cost.

160     Huntington Bancshares Incorporated

Table of Contents

The following tables present certain operating basis financial information for each reportable business segment reconciled to Huntington’s consolidated financial results.Income Statements(dollar amounts in millions)Consumer & Regional BankingCommercial BankingTreasury / OtherHuntingtonConsolidatedYear Ended December 31, 2024Net interest income (loss)$4,070 $2,123 $(848)$5,345 Provision for credit losses284 136 — 420 Net interest income (loss) after provision for credit losses3,786 1,987 (848)4,925 Noninterest income1,301 716 23 2,040 Noninterest expense:Direct personnel costs1,135 607 959 2,701 Other noninterest expense, including corporate allocations2,038 611 (788)1,861 Total noninterest expense3,173 1,218 171