Company: HBAN
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0000049196-25-000020
Chunk: 78

Company: HUNTINGTON BANCSHARES INC /MD/
Filing Date: 2025-02-14
Form: 10-K
Item: Item 8
Chunk 78
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 executed to modify interest rate characteristics of designated commercial loans in order to reduce the impact of changes in future cash flows due to market interest rate changes.

148     Huntington Bancshares Incorporated

Table of Contents

The following table presents the gross notional values of derivatives used in Huntington’s asset and liability management activities, identified by the underlying interest rate-sensitive instruments.At December 31, 2024(dollar amounts in millions)Fair Value HedgesCash Flow HedgesEconomic HedgesTotalInstruments associated with:Investment securities$10,987 $— $— $10,987 Loans— 23,300 175 23,475 Long-term debt11,347 — — 11,347 Total notional value$22,334 $23,300 $175 $45,809 At December 31, 2023(dollar amounts in millions)Fair Value HedgesCash Flow HedgesEconomic HedgesTotalInstruments associated with:Investment securities$11,649 $— $— $11,649 Loans— 16,675 175 16,850 Long-term debt9,693 — — 9,693 Total notional value$21,342 $16,675 $175 $38,192 These derivative financial instruments were entered into for the purpose of managing the interest rate risk of assets and liabilities. Net amounts receivable or payable on contracts hedging either interest earning assets or interest bearing liabilities were accrued as an adjustment to either interest income or interest expense. Adjustments to interest income were also recorded for the amounts related to the amortization of premiums for floors that were not included in the measurement of hedge effectiveness, as well as the amounts related to terminated hedges reclassified from AOCI. The net amounts resulted in decreases to net interest income of $231 million for the year ended December 31, 2024 and $248 million for the year ended December 31, 2023, and an increase to net interest income of $76 million for the year ended December 31, 2022.Fair Value HedgesThe changes in fair value of the fair value hedges are recorded through earnings and offset against changes in the fair value of the hedged item.Huntington has designated $11.0 billion of interest rate swaps as fair value hedges of fixed-rate investment securities using the portfolio layer method. This approach allows the Company to designate as the hedged item a stated