| OTHER COMPREHENSIVE INCOME The components of Huntington’s OCI for the three-month and nine-month periods ended September 30, 2020 and 2019, were as follows:
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Three Months Ended
September 30, 2020 |
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Tax (expense) |
| (dollar amounts in millions) |
Pretax |
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Benefit |
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After-tax |
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| Unrealized gains (losses) on available-for-sale securities arising during the period |
$ |
— |
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$ |
— |
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$ |
— |
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| Less: Reclassification adjustment for realized net losses (gains) included in net income |
6 |
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(1) |
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5 |
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| Net change in unrealized holding gains (losses) on available-for-sale securities |
6 |
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(1) |
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5 |
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| Net change in fair value on cash flow hedges |
(52) |
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12 |
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(40) |
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| Net change in pension and other post-retirement obligations |
3 |
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(1) |
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2 |
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| Total other comprehensive income (loss) |
$ |
(43) |
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$ |
10 |
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$ |
(33) |
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Three Months Ended
September 30, 2019 |
|
Tax (expense) |
| (dollar amounts in millions) |
Pretax |
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Benefit |
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After-tax |
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| Unrealized gains (losses) on available-for-sale securities arising during the period |
$ |
81 |
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$ |
(18) |
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$ |
63 |
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| Less: Reclassification adjustment for realized net losses (gains) included in net income |
8 |
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(2) |
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6 |
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| Net change in unrealized gains (losses) on available-for-sale securities |
89 |
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(20) |
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69 |
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| Net change in fair value on cash flow hedges |
36 |
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(8) |
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28 |
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| Net change in pension and other post-retirement obligations |
1 |
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— |
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1 |
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| Total other comprehensive income (loss) |
$ |
126 |
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$ |
(28) |
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$ |
98 |
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Nine Months Ended
September 30, 2020 |
|
Tax (expense) |
| (dollar amounts in millions) |
Pretax |
|
Benefit |
|
After-tax |
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| Unrealized gains (losses) on available-for-sale securities arising during the period |
$ |
274 |
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$ |
(61) |
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$ |
213 |
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| Less: Reclassification adjustment for realized net losses (gains) included in net income |
35 |
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(8) |
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27 |
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| Net change in unrealized holding gains (losses) on available-for-sale securities |
309 |
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(69) |
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240 |
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| Net change in fair value on cash flow hedges |
358 |
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(79) |
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279 |
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| Net change in pension and other post-retirement obligations (1) |
(8) |
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2 |
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(6) |
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| Total other comprehensive income (loss) |
$ |
659 |
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$ |
(146) |
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$ |
513 |
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(1) Includes a settlement gain recognized in other noninterest income on the Unaudited Condensed Consolidated Statements of Income.
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Nine Months Ended
September 30, 2019 |
|
Tax (expense) |
| (dollar amounts in millions) |
Pretax |
|
Benefit |
|
After-tax |
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| Unrealized gains (losses) on available-for-sale securities arising during the period |
$ |
428 |
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$ |
(95) |
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$ |
333 |
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| Less: Reclassification adjustment for realized net losses (gains) included in net income |
21 |
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(5) |
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16 |
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| Net change in unrealized holding gains (losses) on available-for-sale securities |
449 |
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(100) |
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349 |
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| Net change in fair value on cash flow hedges |
104 |
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(22) |
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82 |
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| Net change in pension and other post-retirement obligations |
3 |
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— |
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3 |
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| Total other comprehensive income (loss) |
$ |
556 |
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$ |
(122) |
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$ |
434 |
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Activity in accumulated OCI for the three-month and nine-month periods ended September 30, 2020 and 2019, were as follows:
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| (dollar amounts in millions) |
Unrealized gains (losses) on
debt securities (1)
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Change in fair value related to cash flow hedges |
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Unrealized gains
(losses) for
pension and
other post-
retirement
obligations (2)
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Total |
| Three Months Ended September 30, 2020 |
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| Balance, beginning of period |
$ |
207 |
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$ |
342 |
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$ |
(259) |
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$ |
290 |
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| Other comprehensive income before reclassifications |
— |
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(40) |
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— |
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(40) |
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| Amounts reclassified from accumulated OCI to earnings |
5 |
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— |
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2 |
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7 |
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| Period change |
5 |
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(40) |
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2 |
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(33) |
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| Balance, end of period |
$ |
212 |
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$ |
302 |
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$ |
(257) |
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$ |
257 |
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| Three Months Ended September 30, 2019 |
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| Balance, beginning of period |
$ |
(83) |
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$ |
54 |
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$ |
(244) |
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$ |
(273) |
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| Other comprehensive income before reclassifications |
63 |
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28 |
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— |
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|
91 |
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| Amounts reclassified from accumulated OCI to earnings |
6 |
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— |
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1 |
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7 |
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| Period change |
69 |
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28 |
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1 |
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|
98 |
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| Balance, end of period |
$ |
(14) |
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$ |
82 |
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$ |
(243) |
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$ |
(175) |
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| (dollar amounts in millions) |
Unrealized gains (losses) on
debt securities (1)
|
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Change in fair value related to cash flow hedges |
|
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Unrealized gains
(losses) for
pension and
other post-
retirement
obligations (2)
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Total |
| Nine Months Ended September 30, 2020 |
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| Balance, beginning of period |
$ |
(28) |
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$ |
23 |
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$ |
(251) |
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$ |
(256) |
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| Other comprehensive income before reclassifications |
213 |
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|
279 |
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|
— |
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|
492 |
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| Amounts reclassified from accumulated OCI to earnings |
27 |
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— |
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|
(6) |
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21 |
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| Period change |
240 |
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|
279 |
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(6) |
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|
513 |
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| Balance, end of period |
$ |
212 |
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$ |
302 |
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$ |
(257) |
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$ |
257 |
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| Nine Months Ended September 30, 2019 |
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| Balance, beginning of period |
$ |
(363) |
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|
$ |
— |
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$ |
(246) |
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$ |
(609) |
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| Other comprehensive income before reclassifications |
333 |
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|
82 |
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|
— |
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|
415 |
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| Amounts reclassified from accumulated OCI to earnings |
16 |
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|
— |
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|
3 |
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|
19 |
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| Period change |
349 |
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|
82 |
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3 |
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|
434 |
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| Balance, end of period |
$ |
(14) |
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$ |
82 |
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$ |
(243) |
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$ |
(175) |
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(1)AOCI amounts at September 30, 2020, June 30, 2020 and September 30, 2019 include $74 million, $81 million and $126 million, respectively, net of unrealized losses on securities transferred from the available-for-sale securities portfolio to the held-to-maturity securities portfolio. The net unrealized losses will be recognized in earnings over the remaining life of the security using the effective interest method.
(2)Amounts for the nine months ended September 30, 2020 include a settlement gain recognized in other noninterest income on the Unaudited Condensed Consolidated Statements of Income.
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