Annual report pursuant to Section 13 and 15(d)

FAIR VALUES OF ASSETS AND LIABILITIES (Tables)

v3.22.0.1
FAIR VALUES OF ASSETS AND LIABILITIES (Tables)
 12 Months Ended
Dec. 31, 2021
Fair Value Disclosures [Abstract]  
Assets and liabilities measured at fair value on a recurring basis
Assets and liabilities measured at fair value on a recurring basis are summarized in the following tables:
Fair Value Measurements at Reporting Date Using Netting Adjustments (1) December 31, 2021
(dollar amounts in millions) Level 1 Level 2 Level 3
Assets
Trading account securities:
Municipal securities $ —  $ 46  $ —  $ —  $ 46 
Available-for-sale securities:
U.S. Treasury securities 5  —  —  —  5 
Residential CMOs —  4,649  —  —  4,649 
Residential MBS —  15,508  —  —  15,508 
Commercial MBS —  1,865  —  —  1,865 
Other agencies —  248  —  —  248 
Municipal securities —  49  3,477  —  3,526 
Private-label CMO —  86  20  —  106 
Asset-backed securities —  312  70  —  382 
Corporate debt —  2,167  —  —  2,167 
Other securities/sovereign debt —  4  —  —  4 
5  24,888  3,567  —  28,460 
Other securities 65  7  —  —  72 
Loans held for sale —  1,270  —  —  1,270 
Loans held for investment —  152  19  —  171 
MSRs —  —  351  —  351 
Other assets:
Derivative assets —  1,055  10  (465) 600 
Assets held in trust for deferred compensation plans 156  —  —  —  156 
Liabilities
Derivative liabilities —  737  6  (624) 119 
Fair Value Measurements at Reporting Date Using Netting Adjustments (1) December 31, 2020
(dollar amounts in millions) Level 1 Level 2 Level 3
Assets
Trading account securities:
Municipal securities $ —  $ 62  $ —  $ —  $ 62 
Available-for-sale securities:
U.S. Treasury securities 5  —  —  —  5 
Residential CMOs —  3,666  —  —  3,666 
Residential MBS —  7,935  —  —  7,935 
Commercial MBS —  1,163  —  —  1,163 
Other agencies —  62  —  —  62 
Municipal securities —  53  2,951  —  3,004 
Private-label CMO —  —  9  —  9 
Asset-backed securities —  182  10  —  192 
Corporate debt —  445  —  —  445 
Other securities/sovereign debt —  4  —  —  4 
5  13,510  2,970  —  16,485 
Other securities 59  —  —  —  59 
Loans held for sale —  1,198  —  —  1,198 
Loans held for investment —  71  23  —  94 
MSRs —  —  210  —  210 
Other assets:
Derivative assets —  1,903  43  (889) 1,057 
Assets held in trust for deferred compensation plans 73  —  —  —  73 
Liabilities
Derivative liabilities —  1,031  2  (917) 116 
(1)Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions and cash collateral held or placed with the same counterparties.
Roll forward of derivatives measured on a recurring basis and classified as Level 3
The following tables present a rollforward of the balance sheet amounts measured at fair value on a recurring basis and classified as Level 3. The classification of an item as Level 3 is based on the significance of the unobservable inputs to the overall fair value measurement. However, Level 3 measurements may also include observable components of value that can be validated externally. Accordingly, the gains and losses in the table below include changes in fair value due in part to observable factors that are part of the valuation methodology.
Level 3 Fair Value Measurements
Year Ended December 31, 2021
Available-for-sale securities Loans held for investment
(dollar amounts in millions) MSRs Derivative
instruments		 Municipal
securities		 Private-
label
CMO		 Asset-
backed
securities
Opening balance $ 210  $ 41  $ 2,951  $ 9  $ 10  $ 23 
Transfers out of Level 3 (1) —  (132) —  —  —  — 
Total gains/losses for the period:
Included in earnings:
Mortgage banking income 27  88  —  —  —  — 
Interest and fee income —  —  (1) (2) —  — 
Included in OCI —  —  (46) —  —  — 
Purchases/originations/acquisitions 194  7  1,835  11  115  — 
Sales —  —  (369) —  —  — 
Repayments —  —  —  —  —  (4)
Settlements (80) —  (893) 2  (55) — 
Closing balance $ 351  $ 4  $ 3,477  $ 20  $ 70  $ 19 
Change in unrealized gains or losses for the period included in earnings for assets held at end of the reporting date $ 27  $ (41) $ —  $ —  $ —  $ — 
Change in unrealized gains or losses for the period included in other comprehensive income for assets held at the end of the reporting period $ —  $ —  $ (47) $ —  $ —  $ — 
Level 3 Fair Value Measurements
Year Ended December 31, 2020
Available-for-sale securities Loans held for investment
(dollar amounts in millions) MSRs
Derivative
instruments
Municipal
securities
 Private-
label
CMO
Asset-
backed
securities
Opening balance $ 7  $ 6  $ 2,999  $ 2  $ 48  $ 26 
Fair value election for serving assets previously measured using the amortized method 205  —  —  —  — 
Transfers out of Level 3 (1) —  (198) —  —  —  — 
Total gains/losses for the period:
Included in earnings:
Mortgage banking income (104) 233  —  —  —  — 
Interest and fee income —  —  (2) —  —  — 
Included in OCI —  —  65  —  —  — 
Purchases/originations 102  —  623  7  28  — 
Repayments —  —  —  —  —  (3)
Settlements —  —  (734) —  (66) — 
Closing balance $ 210  $ 41  $ 2,951  $ 9  $ 10  $ 23 
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets held at end of the reporting date $ (104) $ 34  $ —  $ —  $ —  $ — 
Change in unrealized gains or losses for the period included in other comprehensive income for assets held at the end of the reporting period $ —  $ —  $ 68  $ —  $ —  $ — 
Level 3 Fair Value Measurements
Year Ended December 31, 2019
      Available-for-sale securities Loans held for investment
(dollar amounts in millions) MSRs
Derivative
instruments
Municipal
securities
Private
label CMO
Asset-
backed
securities
Opening balance $ 10  $ 2  $ 3,165  $ —  $ —  $ 30 
Transfers out of Level 3 (1) —  (62) —  —  —  — 
Total gains/losses for the period:
Included in earnings:
Mortgage banking income (3) 66  —  —  —  — 
Interest and fee income —  —  (1) —  —  1 
Included in OCI —  —  77  —  —  — 
Purchases/originations —  —  254  2  55  — 
Sales —  —  —  —  —  — 
Repayments —  —  —  —  —  (5)
Settlements —  —  (496) —  (7) — 
Closing balance $ 7  $ 6  $ 2,999  $ 2  $ 48  $ 26 
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets held at end of the reporting date $ (3) $ 3  $ —  $ —  $ —  $ — 
Change in unrealized gains or losses for the period included in other comprehensive income for assets held at the end of the reporting period $ —  $ —  $ 74  $ —  $ —  $ — 
(1)     Transfers out of Level 3 represent the settlement value of the derivative instruments (i.e. interest rate lock agreements) that are transferred to loans held for sale, which is classified as Level 2.
Roll forward of assets measured on a recurring basis and classified as Level 3
Level 3 Fair Value Measurements
Year Ended December 31, 2021
Available-for-sale securities Loans held for investment
(dollar amounts in millions) MSRs Derivative
instruments		 Municipal
securities		 Private-
label
CMO		 Asset-
backed
securities
Opening balance $ 210  $ 41  $ 2,951  $ 9  $ 10  $ 23 
Transfers out of Level 3 (1) —  (132) —  —  —  — 
Total gains/losses for the period:
Included in earnings:
Mortgage banking income 27  88  —  —  —  — 
Interest and fee income —  —  (1) (2) —  — 
Included in OCI —  —  (46) —  —  — 
Purchases/originations/acquisitions 194  7  1,835  11  115  — 
Sales —  —  (369) —  —  — 
Repayments —  —  —  —  —  (4)
Settlements (80) —  (893) 2  (55) — 
Closing balance $ 351  $ 4  $ 3,477  $ 20  $ 70  $ 19 
Change in unrealized gains or losses for the period included in earnings for assets held at end of the reporting date $ 27  $ (41) $ —  $ —  $ —  $ — 
Change in unrealized gains or losses for the period included in other comprehensive income for assets held at the end of the reporting period $ —  $ —  $ (47) $ —  $ —  $ — 
Level 3 Fair Value Measurements
Year Ended December 31, 2020
Available-for-sale securities Loans held for investment
(dollar amounts in millions) MSRs
Derivative
instruments
Municipal
securities
 Private-
label
CMO
Asset-
backed
securities
Opening balance $ 7  $ 6  $ 2,999  $ 2  $ 48  $ 26 
Fair value election for serving assets previously measured using the amortized method 205  —  —  —  — 
Transfers out of Level 3 (1) —  (198) —  —  —  — 
Total gains/losses for the period:
Included in earnings:
Mortgage banking income (104) 233  —  —  —  — 
Interest and fee income —  —  (2) —  —  — 
Included in OCI —  —  65  —  —  — 
Purchases/originations 102  —  623  7  28  — 
Repayments —  —  —  —  —  (3)
Settlements —  —  (734) —  (66) — 
Closing balance $ 210  $ 41  $ 2,951  $ 9  $ 10  $ 23 
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets held at end of the reporting date $ (104) $ 34  $ —  $ —  $ —  $ — 
Change in unrealized gains or losses for the period included in other comprehensive income for assets held at the end of the reporting period $ —  $ —  $ 68  $ —  $ —  $ — 
Level 3 Fair Value Measurements
Year Ended December 31, 2019
      Available-for-sale securities Loans held for investment
(dollar amounts in millions) MSRs
Derivative
instruments
Municipal
securities
Private
label CMO
Asset-
backed
securities
Opening balance $ 10  $ 2  $ 3,165  $ —  $ —  $ 30 
Transfers out of Level 3 (1) —  (62) —  —  —  — 
Total gains/losses for the period:
Included in earnings:
Mortgage banking income (3) 66  —  —  —  — 
Interest and fee income —  —  (1) —  —  1 
Included in OCI —  —  77  —  —  — 
Purchases/originations —  —  254  2  55  — 
Sales —  —  —  —  —  — 
Repayments —  —  —  —  —  (5)
Settlements —  —  (496) —  (7) — 
Closing balance $ 7  $ 6  $ 2,999  $ 2  $ 48  $ 26 
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets held at end of the reporting date $ (3) $ 3  $ —  $ —  $ —  $ — 
Change in unrealized gains or losses for the period included in other comprehensive income for assets held at the end of the reporting period $ —  $ —  $ 74  $ —  $ —  $ — 
(1)     Transfers out of Level 3 represent the settlement value of the derivative instruments (i.e. interest rate lock agreements) that are transferred to loans held for sale, which is classified as Level 2.
Assets and liabilities under the fair value option
The following table presents the fair value and aggregate principal balance of certain assets and liabilities under the fair value option:
Total Loans Loans that are 90 or more days past due
(dollar amounts in millions) Fair value
carrying
amount		 Aggregate
unpaid
principal		 Difference Fair value
carrying
amount		 Aggregate
unpaid
principal		 Difference
December 31, 2021
Assets
Loans held for sale $ 1,270  $ 1,237  $ 33  $ —  $ —  $ — 
Loans held for investment 171  177  (6) 4  4  — 
December 31, 2020
Assets
Loans held for sale $ 1,198  $ 1,134  $ 64  $ 2  $ 2  $ — 
Loans held for investment 94  99  $ (5) 7  8  (1)

The following table presents the net (losses) gains from fair value changes:
  Net (losses) gains from fair value
changes Year Ended December 31,
(dollar amounts in millions) 2021 2020 2019
Assets
Loans held for sale (1)
$ (31) $ 38  $ 7 
Loans held for investment (1) 1  1 
(1)The net (losses) gains from fair value changes are included in Mortgage banking income on the Consolidated Statements of Income.
Assets measured at fair value on a nonrecurring basis
The amounts measured at fair value on a nonrecurring basis were as follows:
Fair Value Measurements Using
(dollar amounts in millions) Fair Value
Quoted Prices
In Active
Markets for
Identical Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Other
Unobservable
Inputs
(Level 3)
 Total
Gains/(Losses)
 Year Ended
December 31, 2021
Collateral-dependent loans $ 39  $ —  $ —  $ 39  $ (4)
December 31, 2020
Collateral-dependent loans 144  —  —  144  (43)
Loans held for sale 124  —  —  124  (63)
Quantitative information about significant unobservable level 3 fair value measurement inputs
The table below presents quantitative information about the significant unobservable inputs for assets and liabilities measured at fair value on a recurring and nonrecurring basis:
Quantitative Information about Level 3 Fair Value Measurements
At December 31, 2021(1) At December 31, 2020(1)
(dollar amounts in millions) Valuation Technique Significant Unobservable  Input Range
Weighted
 Average
 Range
Weighted
 Average
Measured at fair value on a recurring basis:
MSRs Discounted cash flow Constant prepayment rate 8  % - 23  % 12  % 8  % - 24  % 17  %
Spread over forward interest rate swap rates 3  % - 11  % 5  % 4  % - 11  % 5  %
Derivative assets Consensus Pricing Net market price (4) % - 8  % 1  % (4) % - 11  % 3  %
Estimated pull through % 6  % - 100  % 92  % 1  % - 100  % 88  %
Municipal securities Discounted cash flow Discount rate —  % - 2  % 1  % —  % - 1  % 1  %
Asset-backed securities Cumulative default —  % - 64  % 5  % —  % - 39  % 4  %
Loss given default 5  % - 80  % 23  % 5  % - 80  % 25  %
(1)     Certain disclosures related to quantitative level 3 fair value measurements do not include those deemed to be immaterial.
Fair value by balance sheet grouping
The following table provides the carrying amounts and estimated fair values of Huntington’s financial instruments:
(dollar amounts in millions) Amortized Cost Lower of Cost or Market
Fair Value or
Fair Value Option
 Total Carrying Amount Estimated Fair Value
December 31, 2021
Financial Assets
Cash and short-term assets $ 5,914  $ —  $ —  $ 5,914  $ 5,914 
Trading account securities —  —  46  46  46 
Available-for-sale securities —  —  28,460  28,460  28,460 
Held-to-maturity securities 12,447  —  —  12,447  12,489 
Other securities 576  —  72  648  648 
Loans held for sale —  406  1,270  1,676  1,621 
Net loans and leases (1) 109,719  —  171  109,890  110,342 
Derivative assets —  —  600  600  600 
Assets held in trust for deferred compensation plans —  —  156  156  156 
Financial Liabilities
Deposits 143,263  —  —  143,263  143,574 
Short-term borrowings 334  —  —  334  334 
Long-term debt 7,108  —  —  7,108  7,319 
Derivative liabilities —  —  119  119  119 
December 31, 2020
Financial Assets
Cash and short-term assets $ 6,712  $ —  $ —  $ 6,712  $ 6,712 
Trading account securities —  —  62  62  62 
Available-for-sale securities —  —  16,485  16,485  16,485 
Held-to-maturity securities 8,861  —  —  8,861  9,255 
Other securities 359  —  59  418  418 
Loans held for sale —  77  1,198  1,275  1,275 
Net loans and leases (1) 79,700  —  94  79,794  80,477 
Derivative assets —  —  1,057  1,057  1,057 
Assets held in trust for deferred compensation plans —  —  73  73  73 
Financial Liabilities
Deposits 98,948  —  —  98,948  99,021 
Short-term borrowings 183  —  —  183  183 
Long-term debt 8,352  —  —  8,352  8,568 
Derivative liabilities —  —  116  116  116 
(1)Includes collateral-dependent loans.
The following table presents the level in the fair value hierarchy for estimated fair values:
Estimated Fair Value Measurements at Reporting Date Using Netting Presented Balance
(dollar amounts in millions) Level 1 Level 2 Level 3 Adjustments (1)
December 31, 2021
Financial Assets
Trading account securities $ —  $ 46  $ —  $ 46 
Available-for-sale securities 5  24,888  3,567  28,460 
Held-to-maturity securities —  12,489  —  12,489 
Other securities (2) 65  7  —  72 
Loans held for sale —  1,270  351  1,621 
Net loans and leases —  152  110,190  110,342 
Derivative assets —  1,055  10  (465) 600 
Financial Liabilities
Deposits —  139,047  4,527  143,574 
Short-term borrowings —  334  —  334 
Long-term debt —  6,441  878  7,319 
Derivative liabilities —  737  6  (624) 119 
December 31, 2020
Financial Assets
Trading account securities $ —  $ 62  $ —  $ 62 
Available-for-sale securities 5  13,510  2,970  16,485 
Held-to-maturity securities —  9,255  —  9,255 
Other securities (2) 59  —  —  59 
Loans held for sale —  1,198  77  1,275 
Net loans and leases —  71  80,406  80,477 
Derivative assets —  1,903  43  (889) 1,057 
Financial Liabilities
Deposits —  96,656  2,365  99,021 
Short-term borrowings —  183  —  183 
Long-term debt —  7,999  569  8,568 
Derivative liabilities —  1,031  2  (917) 116 
(1)Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions and cash collateral held or placed with the same counterparties.
(2)Excludes securities without readily determinable fair values.