Investment securities and cash collateral pledged to Huntington

[Table of](#ib75bcbc468d84ef69c01608c63d6bb19_10) [Content](#ib75bcbc468d84ef69c01608c63d6bb19_10)Huntington enters into transactions with broker-dealers and banks for various risk management purposes. These types of transactions generally are high dollar volume. Huntington enters into collateral and master netting agreements with these counterparties, and routinely exchanges cash and high quality securities collateral. Huntington enters into transactions with customers to meet their financing, investing, payment and risk management needs. These types of transactions generally are low dollar volume. Huntington enters into master netting agreements with customer counterparties; however, collateral is generally not exchanged with customer counterparties.In addition to the customer derivative credit exposure, aggregate credit risk associated with broker-dealer and bank derivative transactions was net excess collateral of $280 million and net credit risk of $44 million at September 30, 2022 and December 31, 2021, respectively. The net credit risk associated with derivatives is calculated after considering master netting agreements and is reduced by collateral that has been pledged by the counterparty.At September 30, 2022, Huntington pledged $298 million of investment securities and cash collateral to counterparties, while other counterparties pledged $861 million of investment securities and cash collateral to Huntington to satisfy collateral netting agreements. In the event of credit downgrades, Huntington would not be required to provide additional collateral.The following tables present the gross amounts of these assets and liabilities with any offsets to arrive at the net amounts recognized in the Unaudited Condensed Consolidated Balance Sheets at September 30, 2022 and December 31, 2021.  


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| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
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| Offsetting of Financial Assets and Derivative Assets |
|  |  |  |  | Gross amountsoffset in the unauditedcondensedconsolidatedbalance sheets |  | Net amounts ofassetspresented inthe unaudited condensedconsolidatedbalance sheets |  | Gross amounts not offset in theunaudited condensed consolidatedbalance sheets |  |  |
| (dollar amounts in millions) |  | Gross amountsof recognizedassets |  |  |  | Financialinstruments |  | Cash collateralreceived |  | Net amount |
| September 30, 2022 |  | $ | 2,523  |  |  | $ | (2,104) |  |  | $ | 419  |  |  | $ | (6) |  |  | $ | (121) |  |  | $ | 292  |  |
| December 31, 2021 |  | 1,065  |  |  | (465) |  |  | 600  |  |  | (65) |  |  | (31) |  |  | 504  |  |



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| Offsetting of Financial Liabilities and Derivative Liabilities |
|  |  |  |  | Gross amountsoffset in the unauditedcondensedconsolidatedbalance sheets |  | Net amounts ofliabilitiespresented inthe unaudited condensedconsolidatedbalance sheets |  | Gross amounts not offset in theunaudited condensed consolidatedbalance sheets |  |  |
| (dollar amounts in millions) |  | Gross amountsof recognizedliabilities |  |  |  | Financialinstruments |  | Cash collateraldelivered |  | Net amount |
| September 30, 2022 |  | $ | 2,663  |  |  | $ | (1,460) |  |  | $ | 1,203  |  |  | $ | (79) |  |  | $ | (148) |  |  | $ | 976  |  |
| December 31, 2021 |  | 743  |  |  | (624) |  |  | 119  |  |  | (3) |  |  | (116) |  |  | —  |  |

15. VIEs Unconsolidated VIEsThe following tables provide a summary of the assets and liabilities included in Huntington’s Unaudited Condensed Consolidated Financial Statements, as well as the maximum exposure to losses, associated with its interests related to unconsolidated VIEs for which Huntington holds an interest in, but is not the primary beneficiary, of the VIE at September 30, 2022, and December 31, 2021:

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| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | September 30, 2022 |
| (dollar amounts in millions) | Total Assets |  | Total Liabilities |  | Maximum Exposure to Loss |
| Affordable Housing Tax Credit Partnerships | $ | 1,910  |  |  | $ | 1,169  |  |  | $ | 1,910  |  |
| Trust Preferred Securities | 8  |  |  | 179  |  |  | —  |  |
| Other Investments | 522  |  |  | 148  |  |  | 522  |  |
| Total | $ | 2,440  |  |  | $ | 1,496  |  |  | $ | 2,432  |  |

82 Huntington Bancshares Incorporated  

