Company: HBAN
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0000049196-25-000020
Chunk: 85

Company: HUNTINGTON BANCSHARES INC /MD/
Filing Date: 2025-02-14
Form: 10-K
Item: Item 8
Chunk 85
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2024 Form 10-K     153

Table of Contents

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 its investments in these entities. These investments are included in other assets. Investments that do not meet the requirements of the proportional amortization method are accounted for using the equity method. Investment losses are included in Other noninterest income in the Consolidated Statements of Income.The following table presents the balances of Huntington’s affordable housing tax credit investments and related unfunded commitments.At December 31,(dollar amounts in millions)20242023Affordable housing tax credit investments$3,628 $3,335 Less: amortization(1,246)(1,038)Net affordable housing tax credit investments$2,382 $2,297 Unfunded commitments$1,065 $1,279 The following table presents other information relating to Huntington’s affordable housing tax credit investments.  Year Ended December 31,(dollar amounts in millions)202420232022Tax credits and other tax benefits recognized$273 $260 $203 Proportional amortization expense included in provision for income taxes234 205 170 Trust-Preferred SecuritiesHuntington has certain wholly-owned trusts whose assets, liabilities, equity, income, and expenses are not included within Huntington’s Consolidated Financial Statements. These trusts have been formed for the sole purpose of issuing trust-preferred securities, from which the proceeds are then invested in Huntington junior subordinated debentures, which are reflected in Huntington’s Consolidated Balance Sheet as long-term debt. The trust securities are the obligations of the trusts, and as such, are not consolidated within Huntington’s Consolidated Financial Statements.Other InvestmentsOther investments determined to be VIE’s include investments in Small Business Investment Companies, Historic Tax Credit Investments, certain equity method investments, renewable energy financings, and other miscellaneous investments.

154     Huntington Bancshares Incorporated