Company: HBAN
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0000049196-25-000079
Chunk: 29

Company: HUNTINGTON BANCSHARES INC /MD/
Filing Date: 2025-10-28
Form: 10-Q
Item: Part I, Item 1
Chunk 29
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 cuts until reaching a federal funds rate of 3% by the end of 2026. The inflation outlook deteriorates slightly as the impacts of tariffs and other trade policies are expected to cascade through the economy, with near-term inflation expected to rise further above the Federal Reserve’s 2% target until the rate begins to decline in the second half of 2026 but still remaining above target. GDP growth, while positive, has slowed to a current level of approximately 1% and is forecasted to remain below 2% through the end of 2026.

The economic scenarios used included elevated levels of economic uncertainty, such as the impact of specific challenges in the commercial real estate industry, recent inflation levels, the impacts of U.S. trade policies, the U.S. labor market, the expected path of interest rate changes by the Federal Reserve, and the impact of significant conflicts on-going around the world. Given the uncertainty associated with key economic scenario assumptions, the September 30, 2025 ACL included a general reserve that consists of various risk profile components to address uncertainty not measured within the quantitative transaction reserve. 

7. MORTGAGE LOAN SALES AND SERVICING RIGHTS 

Residential Mortgage PortfolioThe following table summarizes activity relating to residential mortgage loans sold with servicing retained.Three Months EndedNine Months Ended(dollar amounts in millions)September 30, 2025September 30, 2024September 30, 2025September 30, 2024Residential mortgage loans sold with servicing retained$1,514 $1,150 $3,691 $2,944 Pretax gains resulting from above loan sales (1)24 17 66 49 Total servicing, late, and other ancillary fees (1)27 27 80 78 (1)Included in mortgage banking income.The following table summarizes the changes in MSRs recorded using the fair value method.Three Months EndedNine Months Ended(dollar amounts in millions)September 30, 2025September 30, 2024September 30, 2025September 30, 2024Fair value, beginning of period$567 $543 $573 $515 New servicing assets created27 12 67 33 Change in fair value during the period due to:Time decay (1)(6)(6)(20)(19)Payoffs (2)(11)(9)(28)(21)Changes in valuation inputs or assumptions (3)(1)(25)(