DERIVATIVE FINANCIAL INSTRUMENTS (Tables)
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12 Months Ended |
Dec. 31, 2019 |
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| Derivative Instruments and Hedging Activities Disclosure [Abstract] |
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| Gross notional values of derivatives used in asset and liability management activities |
The following table presents the gross notional values of derivatives used in Huntington’s asset and liability management activities at December 31, 2019 and December 31, 2018, identified by the underlying interest rate-sensitive instruments:
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December 31, 2019 |
(dollar amounts in millions) |
Fair Value Hedges |
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Cash Flow Hedges |
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Total |
Instruments associated with: |
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Loans |
$ |
— |
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|
$ |
18,375 |
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$ |
18,375 |
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Investment securities |
— |
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|
12 |
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|
12 |
|
Long-term debt |
7,540 |
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|
— |
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|
7,540 |
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Total notional value at December 31, 2019 |
$ |
7,540 |
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|
$ |
18,387 |
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|
$ |
25,927 |
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December 31, 2018 |
(dollar amounts in millions) |
Fair Value Hedges |
|
Cash Flow Hedges |
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Total |
Instruments associated with: |
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Investment securities |
$ |
— |
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|
$ |
12 |
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$ |
12 |
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Long-term debt |
4,865 |
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|
— |
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|
4,865 |
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Total notional value at December 31, 2018 |
$ |
4,865 |
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|
$ |
12 |
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|
$ |
4,877 |
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| Additional information about the interest rate swaps used in asset and liability management activities |
The following table presents additional information about the interest rate swaps and floors used in Huntington’s asset and liability management activities at December 31, 2019 and December 31, 2018:
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December 31, 2019 |
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Average Maturity (years) |
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Weighted-Average Rate |
(dollar amounts in millions) |
Notional Value |
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Fair Value |
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Receive |
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Pay |
Asset conversion swaps |
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Receive fixed—generic |
$ |
8,637 |
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|
3.3 |
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$ |
23 |
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|
1.66 |
% |
|
1.06 |
% |
Liability conversion swaps |
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Receive fixed—generic |
7,540 |
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|
2.3 |
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|
151 |
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|
2.20 |
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|
1.79 |
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Total swap portfolio at December 31, 2019 |
$ |
16,177 |
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|
2.9 |
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$ |
174 |
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|
1.91 |
% |
|
1.40 |
% |
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December 31, 2019 |
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(dollar amounts in millions) |
Notional Value |
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Average Maturity (years) |
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Fair Value |
Interest rate floors |
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Designated interest rate floors |
$ |
9,750 |
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|
1.6 |
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$ |
46 |
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Total floors portfolio at December 31, 2019 |
$ |
9,750 |
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1.6 |
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$ |
46 |
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December 31, 2018 |
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Average Maturity (years) |
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Weighted-Average Rate |
(dollar amounts in millions) |
Notional Value |
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Fair Value |
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Receive |
|
Pay |
Asset conversion swaps |
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Receive fixed—generic |
$ |
12 |
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1.2 |
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$ |
— |
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2.20 |
% |
|
2.46 |
% |
Liability conversion swaps |
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Receive fixed—generic |
4,865 |
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2.6 |
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2 |
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2.24 |
% |
|
2.54 |
% |
Total swap portfolio at December 31, 2018 |
$ |
4,877 |
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|
2.6 |
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$ |
2 |
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2.24 |
% |
|
2.54 |
% |
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| Asset and liability derivatives included in accrued income and other assets |
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December 31, 2019 |
December 31, 2018 |
(dollar amounts in millions) |
Asset |
|
Liability |
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Asset |
|
Liability |
Derivatives designated as Hedging Instruments |
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Interest rate contracts |
$ |
256 |
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$ |
36 |
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$ |
44 |
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$ |
42 |
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Derivatives not designated as Hedging Instruments |
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Interest rate contracts |
420 |
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|
314 |
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|
261 |
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|
165 |
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Foreign exchange contracts |
19 |
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18 |
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23 |
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19 |
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Commodities contracts |
155 |
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152 |
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172 |
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|
168 |
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Equity contracts |
6 |
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1 |
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— |
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|
10 |
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Total Contracts |
$ |
856 |
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$ |
521 |
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$ |
500 |
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$ |
404 |
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| Increase or (decrease) to interest expense for derivatives designated as fair value hedges |
The following table presents the change in fair value for derivatives designated as fair value hedges as well as the offsetting change in fair value on the hedged item for the years ended December 31, 2019 and 2018:
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Year Ended December 31, |
(dollar amounts in millions) |
2019 |
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2018 |
|
2017 |
Interest rate contracts |
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Change in fair value of interest rate swaps hedging long-term debt (1) |
$ |
127 |
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$ |
112 |
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$ |
(53 |
) |
Change in fair value of hedged long term debt (1) |
(125 |
) |
|
(104 |
) |
|
54 |
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(1)
Recognized in Interest expense - long-term debt in the Consolidated Statements of Income.
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| Gains and (losses) recognized in other comprehensive income (loss) (OCI) for derivatives designated as effective cash flow hedges |
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Location of Gain or (Loss) Recognized in Income on Derivative |
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Year Ended December 31, |
(dollar amounts in millions) |
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2019 |
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2018 |
Interest rate contracts: |
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Customer |
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Capital markets fees |
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$ |
49 |
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$ |
41 |
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Mortgage Banking |
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Mortgage banking income |
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37 |
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(19 |
) |
Interest rate floors |
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Other noninterest income |
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4 |
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— |
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Foreign exchange contracts |
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Capital markets fees |
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28 |
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27 |
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Commodities contracts |
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Capital markets fees |
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(2 |
) |
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6 |
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Equity contracts |
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Other noninterest expense |
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(4 |
) |
|
4 |
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Total |
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$ |
112 |
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$ |
59 |
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| Offsetting of financial assets and derivatives assets |
The following tables present the gross amounts of these assets and liabilities with any offsets to arrive at the net amounts recognized in the Consolidated Balance Sheets at December 31, 2019 and December 31, 2018:
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Offsetting of Financial Assets and Derivative Assets |
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Gross amounts
offset in the
consolidated
balance sheets
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Net amounts of
assets
presented in
the
consolidated
balance sheets
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Gross amounts not offset in the consolidated balance sheets |
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(dollar amounts in millions) |
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Gross amounts
of recognized
assets
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Financial
instruments
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Cash collateral
received
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Net amount |
December 31, 2019 |
Derivatives |
$ |
856 |
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$ |
(404 |
) |
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$ |
452 |
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$ |
(65 |
) |
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$ |
(29 |
) |
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$ |
358 |
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December 31, 2018 |
Derivatives |
500 |
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|
(291 |
) |
|
209 |
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(4 |
) |
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(53 |
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|
152 |
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| Offsetting of financial liabilities and derivative liabilities |
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Offsetting of Financial Liabilities and Derivative Liabilities |
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Gross amounts
offset in the
consolidated
balance sheets
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Net amounts of
liabilities
presented in
the
consolidated
balance sheets
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Gross amounts not offset in the consolidated balance sheets |
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(dollar amounts in millions) |
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Gross amounts
of recognized
liabilities
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Financial
instruments
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Cash collateral
delivered
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Net amount |
December 31, 2019 |
Derivatives |
$ |
521 |
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$ |
(417 |
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$ |
104 |
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$ |
— |
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$ |
(75 |
) |
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$ |
29 |
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December 31, 2018 |
Derivatives |
404 |
|
|
(217 |
) |
|
187 |
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|
— |
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|
(12 |
) |
|
175 |
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| Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block] |
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Carrying Amount of the Hedged Liabilities |
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Cumulative Amount of Fair Value Hedging Adjustment To Hedged Liabilities |
(dollar amounts in millions) |
December 31, 2019 |
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December 31, 2018 |
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December 31, 2019 |
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December 31, 2018 |
Long-term debt |
$ |
7,578 |
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$ |
4,845 |
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$ |
114 |
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|
$ |
(12 |
) |
The cumulative amount of fair value hedging adjustments remaining for any hedged assets and liabilities for which hedge accounting has been discontinued is $(93) million at December 31, 2019 and $(127) million at December 31, 2018.
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