Quarterly report pursuant to Section 13 or 15(d)

INVESTMENT SECURITIES AND OTHER SECURITIES

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INVESTMENT SECURITIES AND OTHER SECURITIES
 3 Months Ended
Mar. 31, 2021
Investments, Debt and Equity Securities [Abstract]  
INVESTMENT SECURITIES AND OTHER SECURITIES INVESTMENT SECURITIES AND OTHER SECURITIES
Debt securities purchased in which Huntington has the intent and ability to hold to their maturity are classified as held-to-maturity securities.  All other debt and equity securities are classified as either available-for-sale or other securities.
The following tables provide amortized cost, fair value, and gross unrealized gains and losses by investment category at March 31, 2021 and December 31, 2020:
Unrealized
(dollar amounts in millions) Amortized
Cost (1)
Gross
Gains
Gross
Losses
 Fair Value
March 31, 2021
Available-for-sale securities:
U.S. Treasury $ 5  $ —  $ —  $ 5 
Federal agencies:
Residential CMO $ 3,081  $ 100  $ (9) $ 3,172 
Residential MBS 10,708  61  (124) 10,645 
Commercial MBS 1,277  13  (63) 1,227 
Other agencies 44  2  —  46 
Total U.S. Treasury, federal agency and other agency securities 15,115  176  (196) 15,095 
Municipal securities 3,050  91  (19) 3,122 
Private-label CMO 50  —  —  50 
Asset-backed securities 244  4  (1) 247 
Corporate debt 888  —  (31) 857 
Other securities/Sovereign debt 4  —  —  4 
Total available-for-sale securities $ 19,351  $ 271  $ (247) $ 19,375 
Held-to-maturity securities:
Federal agencies:
Residential CMO $ 1,604  $ 74  $ —  $ 1,678 
Residential MBS 3,259  69  (18) 3,310 
Commercial MBS 2,719  114  —  2,833 
Other agencies 230  8  —  238 
Total federal agency and other agency securities 7,812  265  (18) 8,059 
Municipal securities 3  —  —  3 
Total held-to-maturity securities $ 7,815  $ 265  $ (18) $ 8,062 
Other securities, at cost:
Non-marketable equity securities:
Federal Home Loan Bank stock $ 52  $ —  $ —  $ 52 
Federal Reserve Bank stock 300  —  —  300 
Other securities, at fair value
Mutual funds 42  —  —  42 
Equity securities 16  1  —  17 
Total other securities $ 410  $ 1  $ —  $ 411 
(1)Amortized cost amounts excludes accrued interest receivable, which is recorded within other assets on the Consolidated Balance Sheets. At March 31, 2021, accrued interest receivable on available-for-sale securities and held-to-maturity securities totaled $40 million and $18 million, respectively.
Unrealized
(dollar amounts in millions) Amortized
Cost (1)		 Gross
Gains		 Gross
Losses		 Fair Value
December 31, 2020
Available-for-sale securities:
U.S. Treasury $ 5  $ —  $ —  $ 5 
Federal agencies:
Residential CMO $ 3,550  $ 121  $ (5) $ 3,666 
Residential MBS 7,843  97  (5) 7,935 
Commercial MBS 1,151  21  (9) 1,163 
Other agencies 60  2  —  62 
Total U.S. Treasury, federal agency and other agency securities 12,609  241  (19) 12,831 
Municipal securities 2,928  91  (15) 3,004 
Private-label CMO 9  —  —  9 
Asset-backed securities 185  7  —  192 
Corporate debt 440  5  —  445 
Other securities/Sovereign debt 4  —  —  4 
Total available-for-sale securities $ 16,175  $ 344  $ (34) $ 16,485 
Held-to-maturity securities:
Federal agencies:
Residential CMO $ 1,779  $ 88  $ —  $ 1,867 
Residential MBS 3,715  103  —  3,818 
Commercial MBS 3,118  191  —  3,309 
Other agencies 246  12  —  258 
Total federal agency and other agency securities 8,858  394  —  9,252 
Municipal securities 3  —  —  3 
Total held-to-maturity securities $ 8,861  $ 394  $ —  $ 9,255 
Other securities, at cost:
Non-marketable equity securities:
Federal Home Loan Bank stock $ 60  $ —  $ —  $ 60 
Federal Reserve Bank stock 299  —  —  299 
Other securities, at fair value
Mutual funds 50  —  —  50 
Equity securities 8  1  —  9 
Total other securities $ 417  $ 1  $ —  $ 418 
(1)Amortized cost amounts excludes accrued interest receivable, which is recorded within other assets on the Consolidated Balance Sheets. At December 31, 2020, accrued interest receivable on available-for-sale securities and held-to-maturity securities totaled $32 million and $20 million, respectively.
The following table provides the amortized cost and fair value of securities by contractual maturity at March 31, 2021 and December 31, 2020. Expected maturities may differ from contractual maturities as issuers may have the right to call or prepay obligations with or without incurring penalties.
March 31, 2021 December 31, 2020
(dollar amounts in millions)
Amortized
Cost
Fair
Value
Amortized
Cost
Fair
Value
Available-for-sale securities:
Under 1 year $ 366  $ 357  $ 308  $ 304 
After 1 year through 5 years 1,228  1,237  1,145  1,154 
After 5 years through 10 years 2,127  2,144  1,607  1,654 
After 10 years 15,630  15,637  13,115  13,373 
Total available-for-sale securities $ 19,351  $ 19,375  $ 16,175  $ 16,485 
Held-to-maturity securities:
After 1 year through 5 years $ 142  $ 148  $ 160  $ 169 
After 5 years through 10 years 121  126  131  138 
After 10 years 7,552  7,788  8,570  8,948 
Total held-to-maturity securities $ 7,815  $ 8,062  $ 8,861  $ 9,255 
The following tables provide detail on investment securities with unrealized losses aggregated by investment category and the length of time the individual securities have been in a continuous loss position at March 31, 2021 and December 31, 2020:
Less than 12 Months Over 12 Months Total
(dollar amounts in millions) Fair
Value		 Gross Unrealized
Losses		 Fair
Value		 Gross Unrealized
Losses		 Fair
Value		 Gross Unrealized
Losses
March 31, 2021
Available-for-sale securities:
Federal agencies:
Residential CMO $ 413  $ (9) $ —  $ —  $ 413  $ (9)
Residential MBS 7,919  (124) —  —  7,919  (124)
Commercial MBS 761  (63) —  —  761  (63)
Total federal agency and other agency securities 9,093  (196) —  —  9,093  (196)
Municipal securities 163  (7) 463  (12) 626  (19)
Asset-backed securities 65  (1) —  —  65  (1)
Corporate debt 816  (31) —  —  816  (31)
Total temporarily impaired available-for-sale securities $ 10,137  $ (235) $ 463  $ (12) $ 10,600  $ (247)
Held-to-maturity securities:
Federal agencies:
Residential MBS $ 1,235  (18) —  —  1,235  (18)
Total temporarily impaired held-to-maturity securities $ 1,235  $ (18) $ —  $ —  $ 1,235  $ (18)
Less than 12 Months Over 12 Months Total
(dollar amounts in millions) Fair
Value		 Gross Unrealized
Losses		 Fair
Value		 Gross Unrealized
Losses		 Fair
Value		 Gross Unrealized
Losses
December 31, 2020
Available-for-sale securities:
Federal agencies:
Residential CMO $ 302  $ (5) $ —  $ —  $ 302  $ (5)
Residential MBS 1,633  (5) —  —  1,633  (5)
Commercial MBS 321  (9) —  —  321  (9)
Total federal agency and other agency securities 2,256  (19) —  —  2,256  (19)
Municipal securities 110  (3) 490  (12) 600  (15)
Asset-backed securities 15  —  —  —  15  — 
Corporate debt 51  —  —  —  51  — 
Total temporarily impaired available-for-sale securities
 $ 2,432  $ (22) $ 490  $ (12) $ 2,922  $ (34)
At March 31, 2021 and December 31, 2020, the carrying value of investment securities pledged to secure public and trust deposits, trading account liabilities, U.S. Treasury demand notes, security repurchase agreements and to support borrowing capacity totaled $13.9 billion and $14.4 billion, respectively. There were no securities of a single issuer, which were not governmental or government-sponsored, that exceeded 10% of shareholders’ equity at either March 31, 2021 or December 31, 2020. At March 31, 2021, all HTM debt securities are considered AAA rated. In addition, there were no HTM debt securities considered past due at March 31, 2021.
AFS Securities Impairment/HTM Securities Allowance for Credit Losses
Based on an evaluation of available information including security type, counterparty credit quality, past events, current conditions, and reasonable and supportable forecasts that are relevant to collectability, Huntington has concluded that it expects to receive all contractual cash flows from each security held in its AFS and HTM debt securities portfolio. As such, no allowance or impairment is recorded with respect to securities as of March 31, 2021 and December 31, 2020.