Company: HBAN
Filing Date: 2025-04-29
Form Type: 10-Q
Source: 0000049196-25-000038
Chunk: 122

Company: HUNTINGTON BANCSHARES INC /MD/
Filing Date: 2025-04-29
Form: 10-Q
Item: Part I, Item 2
Chunk 122
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 world. Given the uncertainty associated with key economic scenario assumptions, the March 31, 2025 ACL included a general reserve that consists of various risk profile components to address uncertainty not measured within the quantitative transaction reserve. 

56     Huntington Bancshares Incorporated

6. MORTGAGE LOAN SALES AND SERVICING RIGHTS 

Residential Mortgage PortfolioThe following table summarizes activity relating to residential mortgage loans sold with servicing retained.Three Months Ended(dollar amounts in millions)March 31, 2025March 31, 2024Residential mortgage loans sold with servicing retained$1,009 $811 Pretax gains resulting from above loan sales (1)19 13 Total servicing, late, and other ancillary fees (1)27 26 (1)Included in mortgage banking income.The following table summarizes the changes in MSRs recorded using the fair value method.Three Months Ended(dollar amounts in millions)March 31, 2025March 31, 2024Fair value, beginning of period$573 $515 New servicing assets created20 10 Change in fair value during the period due to:Time decay (1)(7)(6)Payoffs (2)(7)(5)Changes in valuation inputs or assumptions (3)(15)20 Fair value, end of period$564 $534 Loans serviced for third parties, unpaid principal balance, end of period$33,864 $33,303 (1)Represents decrease in value due to passage of time, including the impact from both regularly scheduled principal payments and partial loan paydowns.(2)Represents decrease in value associated with loans that paid off during the period.(3)Represents change in value resulting primarily from market-driven changes in interest rates.The following table summarizes key assumptions and the sensitivity of the MSR value to changes in these assumptions.At March 31, 2025At December 31, 2024Decline in fair value due toDecline in fair value due to(dollar amounts in millions)Actual10%adversechange20%adversechangeActual10%adversechange20%adversechangeConstant prepayment rate (annualized)8.20 %$(15)$(29)7.54 %$(14)$(28)Spread over forward interest rate swap rates567 bps(13)(26)568 bps(13)(26)

7. BORROWINGS 

B