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Huntington Bancshares 8-K Report, Regulation FD Disclosure (Mar 28, 2024)

Reports
Regulation FD·Other Events
Filing Date
Filed March 28, 2024
Period End
March 28, 2024
In the record · 2016–202610-K1110-Q338-K254

HBAN filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 254 current reports (8-K) between 2016 and 2026.

  1. Deal closed8-K · Aug ’16Aug ’16
  2. Leadership change8-K · May ’22May ’22
  3. Leadership change8-K · Sep ’26Sep ’26

01—Abstract

Summary

Summary of the 8-K filed March 28, 2024. Cited figures are marked; the original filing is the authoritative source.

Huntington Bancshares Incorporated reported in this March 28, 2024 Form 8-K, filed under Regulation FD and Item 8.01, two main items.

First, it updates the FDIC special assessment that the company previously disclosed in its 2023 Form 10-K. The assessment is designed to recoup losses to the Deposit Insurance Fund from bank failures in the first half of 2023. Based on uninsured deposits of The Huntington National Bank as of December 31, 2022, Huntington recognized an accrued liability and related expense of approximately $214 milliona in the fourth quarter of 2023.

Following updated FDIC loss estimates in late February 2024 related to the Silicon Valley Bank and Signature Bank closures, Huntington estimates an additional pre-tax expense of approximately $32 millionb in the first quarter of 2024. The FDIC may further adjust the assessment, which could extend collection for additional quarters, add a new special assessment, or end collection early. Second, the company declared a quarterly cash dividend on its 5.70% Series I Non-Cumulative Perpetual Preferred Stock (Nasdaq: HBANM) of $356.25 per share, equivalent to $0.35625 per depositary share.

The dividend is payable June 3, 2024, to shareholders of record on May 15, 2024. The accompanying press release describes Huntington as a $189 billionc asset regional bank holding company headquartered in Columbus, Ohio.

02—Key points

Key Highlights

  1. Recognized an accrued liability and related expense of approximately $214 million in Q4 2023 for the FDIC special assessment, based on uninsured deposits of The Huntington National Bank as of December 31, 2022.
  2. Estimates an additional pre-tax expense of approximately $32 million in Q1 2024 related to the FDIC special assessment, following updated FDIC loss estimates in late February 2024.
  3. The FDIC special assessment is collected at a quarterly rate of 3.36 basis points over eight quarterly assessment periods, subject to change.
  4. Assessment base excludes the first $5 billion of uninsured deposits.
  5. Declared a quarterly cash dividend of $356.25 per share on the 5.70% Series I Non-Cumulative Perpetual Preferred Stock (HBANM), or $0.35625 per depositary share.
  6. Preferred dividend is payable June 3, 2024, to shareholders of record on May 15, 2024.
  7. Press release describes Huntington as a $189 billion asset regional bank holding company with approximately 1,000 branches in 11 states.

03—Questions

Frequently Asked Questions

  1. What is the FDIC special assessment and why does it affect Huntington?

    The FDIC issued a final rule in November 2023 to recoup losses to the Deposit Insurance Fund from bank failures in the first half of 2023. The assessment base is estimated uninsured deposits as of December 31, 2022, excluding the first $5 billion. Huntington's only bank subsidiary, The Huntington National Bank, is subject to it.

  2. How much expense has Huntington recognized or expects related to the special assessment?

    Huntington recognized an accrued liability and related expense of approximately $214 million in the fourth quarter of 2023. It estimates an additional pre-tax expense of approximately $32 million in the first quarter of 2024.

  3. Could the special assessment costs change?

    Yes. Because the loss estimates are uncertain, the FDIC may periodically adjust them. This could extend the assessment for more quarters, impose an additional special assessment, or end collection early if losses are fully recovered. Mergers, failures, or amendments to reported uninsured deposit estimates could also change the assessment.

  4. What dividend did Huntington declare on its preferred stock?

    Huntington declared a quarterly cash dividend of $356.25 per share on its 5.70% Series I Non-Cumulative Perpetual Preferred Stock (Nasdaq: HBANM), equivalent to $0.35625 per depositary share. It is payable June 3, 2024, to holders of record on May 15, 2024.

  5. What are the main risks highlighted in this filing?

    The filing cites risks including deposit outflows of uninsured deposits that could force sales of investment securities at a loss, rising interest rates affecting the value of the securities portfolio, regulatory changes such as increased FDIC special assessments and capital requirements, cybersecurity, and broader economic and market volatility.

04—Continue

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