Company: HBAN
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0000049196-25-000079
Chunk: 230

Company: HUNTINGTON BANCSHARES INC /MD/
Filing Date: 2025-10-28
Form: 10-Q
Item: Part I, Item 8
Chunk 230
---
 to MSR hedging activity are summarized in the following tables.(dollar amounts in millions)At September 30, 2025At December 31, 2024Notional value$2,350 $1,780 Trading liabilities15 45 Three Months EndedNine Months Ended(dollar amounts in millions)September 30, 2025September 30, 2024September 30, 2025September 30, 2024Trading gains (losses)$4 $26 $13 $(3)Derivatives used in customer-related activitiesVarious derivative financial instruments are offered to enable customers to meet their financing and investing objectives and for their risk-management purposes. Derivative financial instruments used in trading activities consist of commodity, interest rate, and foreign exchange contracts. Huntington enters into offsetting third-party contracts with approved, reputable counterparties with substantially matching terms and currencies in order to economically hedge significant exposure related to derivatives used in trading activities.The interest rate or price risk of customer derivatives is mitigated by entering into similar derivatives having offsetting terms with other counterparties. The credit risk to these customers is evaluated and included in the calculation of fair value.The net fair values of these derivative financial instruments, for which the gross amounts are included in other assets or other liabilities at September 30, 2025 and December 31, 2024, were $64 million and $72 million, respectively. The total notional values of derivative financial instruments used by Huntington on behalf of customers, including offsetting derivatives, were $49.7 billion and $45.2 billion at September 30, 2025 and December 31, 2024, respectively. Huntington’s credit risk from customer derivatives was $158 million and $76 million at the same dates, respectively.Credit derivative instruments Huntington enters into credit default swaps to hedge credit risk associated with certain loans and leases. These contracts are accounted for as derivatives, and accordingly, these contracts are recorded at fair value. The total notional value of credit contracts was $160 million and $247 million at September 30, 2025 and December 31, 2024, respectively. The position of these derivatives was a net asset of $3 million at September 30, 2025 and $2 million at December 31, 2024.Financial assets and liabilities that are offset in the Unaudited Consolidated Balance SheetsHuntington records derivatives at fair value as further described in Note 13 - “Fair Values of Assets and Liabilities