Quarterly report pursuant to Section 13 or 15(d)

INVESTMENT SECURITIES AND OTHER SECURITIES

v3.22.1
INVESTMENT SECURITIES AND OTHER SECURITIES
3 Months Ended
Mar. 31, 2022
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, 2022 and December 31, 2021:
Unrealized
(dollar amounts in millions) Amortized
Cost (1)
Gross
Gains
Gross
Losses
Fair Value
March 31, 2022
Available-for-sale securities:
U.S. Treasury $ $ —  $ —  $
Federal agencies:
Residential CMO 2,994  49  (127) 2,916 
Residential MBS 14,427  435  (961) 13,901 
Commercial MBS 2,073  —  (223) 1,850 
Other agencies 229  (5) 225 
Total U.S. Treasury, federal agency and other agency securities 19,728  485  (1,316) 18,897 
Municipal securities 3,422  (100) 3,329 
Private-label CMO 148  —  (3) 145 
Asset-backed securities 415  —  (19) 396 
Corporate debt 2,515  70  (204) 2,381 
Other securities/Sovereign debt —  — 
Total available-for-sale securities $ 26,232  $ 562  $ (1,642) $ 25,152 
Held-to-maturity securities:
Federal agencies:
Residential CMO $ 5,081  $ —  $ (221) $ 4,860 
Residential MBS 10,009  (495) 9,518 
Commercial MBS 1,922  (62) 1,861 
Other agencies 176  —  (4) 172 
Total federal agency and other agency securities 17,188  (782) 16,411 
Municipal securities —  — 
Total held-to-maturity securities $ 17,190  $ $ (782) $ 16,413 
Other securities, at cost:
Non-marketable equity securities:
Federal Home Loan Bank stock $ 465  $ —  $ —  $ 465 
Federal Reserve Bank stock 513  —  —  513 
Equity securities 12  —  —  12 
Other securities, at fair value:
Mutual funds 60  —  —  60 
Equity securities —  — 
Total other securities $ 1,056  $ —  $ —  $ 1,056 
(1)Amortized cost amounts excludes accrued interest receivable, which is recorded within accrued income and other receivables on the Consolidated Balance Sheets. At March 31, 2022, accrued interest receivable on available-for-sale securities and held-to-maturity securities totaled $67 million and $37 million, respectively.
Unrealized
(dollar amounts in millions) Amortized
Cost (1)
Gross
Gains
Gross
Losses
Fair Value
December 31, 2021
Available-for-sale securities:
U.S. Treasury $ $ —  $ —  $
Federal agencies:
Residential CMO 4,649  40  (40) 4,649 
Residential MBS 15,533  135  (160) 15,508 
Commercial MBS 1,896  (38) 1,865 
Other agencies 248  (1) 248 
Total U.S. Treasury, federal agency and other agency securities 22,331  183  (239) 22,275 
Municipal securities 3,497  62  (33) 3,526 
Private-label CMO 106  (1) 106 
Asset-backed securities 385  (4) 382 
Corporate debt 2,183  22  (38) 2,167 
Other securities/Sovereign debt —  — 
Total available-for-sale securities $ 28,506  $ 269  $ (315) $ 28,460 
Held-to-maturity securities:
Federal agencies:
Residential CMO $ 2,602  $ 35  $ (20) $ 2,617 
Residential MBS 7,475  41  (59) 7,457 
Commercial MBS 2,175  45  (5) 2,215 
Other agencies 193  —  198 
Total federal agency and other agency securities 12,445  126  (84) 12,487 
Municipal securities —  — 
Total held-to-maturity securities $ 12,447  $ 126  $ (84) $ 12,489 
Other securities, at cost:
Non-marketable equity securities:
Federal Home Loan Bank stock $ 52  $ —  $ —  $ 52 
Federal Reserve Bank stock 512  —  —  512 
Equity securities 12  —  —  12 
Other securities, at fair value:
Mutual funds 65  —  —  65 
Equity securities — 
Total other securities $ 647  $ $ —  $ 648 
(1)Amortized cost amounts excludes accrued interest receivable, which is recorded within accrued income and other receivables on the Consolidated Balance Sheets. At December 31, 2021, accrued interest receivable on available-for-sale securities and held-to-maturity securities totaled $62 million and $26 million, respectively.
The following table provides the amortized cost and fair value of securities by contractual maturity at March 31, 2022 and December 31, 2021. 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, 2022 December 31, 2021
(dollar amounts in millions)
Amortized
Cost
Fair
Value
Amortized
Cost
Fair
Value
Available-for-sale securities:
Under 1 year $ 379  $ 377  $ 377  $ 374 
After 1 year through 5 years 2,103  2,030  1,888  1,880 
After 5 years through 10 years 3,350  3,205  3,166  3,180 
After 10 years 20,400  19,540  23,075  23,026 
Total available-for-sale securities $ 26,232  $ 25,152  $ 28,506  $ 28,460 
Held-to-maturity securities:
Under 1 year $ $ $ $
After 1 year through 5 years 98  97  162  164 
After 5 years through 10 years 44  43  44  45 
After 10 years 17,046  16,271  12,239  12,278 
Total held-to-maturity securities $ 17,190  $ 16,413  $ 12,447  $ 12,489 
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, 2022 and December 31, 2021:
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, 2022
Available-for-sale securities:
Federal agencies:
Residential CMO $ 2,254  $ (115) $ 100  $ (12) $ 2,354  $ (127)
Residential MBS 11,723  (754) 2,020  (207) 13,743  (961)
Commercial MBS 1,419  (145) 400  (78) 1,819  (223)
Other agencies 158  (5) —  —  158  (5)
Total federal agency and other agency securities 15,554  (1,019) 2,520  (297) 18,074  (1,316)
Municipal securities 2,492  (88) 278  (12) 2,770  (100)
Private-label CMO 107 (3) 107 (3)
Asset-backed securities 332  (17) 24  (2) 356  (19)
Corporate debt 2,095  (169) 265  (35) 2,360  (204)
Total temporarily impaired available-for-sale securities $ 20,580  $ (1,296) $ 3,087  $ (346) $ 23,667  $ (1,642)
Held-to-maturity securities:
Federal agencies:
Residential CMO $ 4,803  $ (221) $ —  $ —  $ 4,803  $ (221)
Residential MBS 8,780  (471) 242  (24) 9,022  (495)
Commercial MBS 1,841  (62) —  —  1,841  (62)
Other agencies 173  (4) —  —  173  (4)
Total federal agency and other agency securities 15,597  (758) 242  (24) 15,839  (782)
Total temporarily impaired held-to-maturity securities $ 15,597  $ (758) $ 242  $ (24) $ 15,839  $ (782)
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, 2021
Available-for-sale securities:
Federal agencies:
Residential CMO $ 2,925  $ (40) $ —  $ —  $ 2,925  $ (40)
Residential MBS 13,491  (160) —  —  13,491  (160)
Commercial MBS 1,251  (38) —  —  1,251  (38)
Other agencies 140  (1) —  —  140  (1)
Total federal agency and other agency securities 17,807  (239) —  —  17,807  (239)
Municipal securities 859  (22) 319  (11) 1,178  (33)
Private-label CMO 78  (1) —  —  78  (1)
Asset-backed securities 237  (4) —  —  237  (4)
Corporate debt 1,766  (38) —  —  1,766  (38)
Total temporarily impaired available-for-sale securities $ 20,747  $ (304) $ 319  $ (11) $ 21,066  $ (315)
Held-to-maturity securities:
Federal agencies:
Residential CMO $ 1,453  $ (20) $ —  $ —  $ 1,453  $ (20)
Residential MBS 5,837  (59) —  —  5,837  (59)
Commercial MBS 318  (5) —  —  318  (5)
Total federal agency and other agency securities 7,608  (84) —  —  7,608  (84)
Total temporarily impaired held-to-maturity securities $ 7,608  $ (84) $ —  $ —  $ 7,608  $ (84)
During the 2022 first quarter, Huntington transferred $4.2 billion of securities from the AFS portfolio to the HTM portfolio. At the time of the transfer, AOCI included $58 million of net unrealized losses (after-tax) attributed to these securities. This loss will be amortized into interest income over the remaining life of the securities.
At March 31, 2022 and December 31, 2021, 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 $30.3 billion and $21.7 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, 2022 or December 31, 2021. At March 31, 2022, all HTM debt securities are considered AAA rated. In addition, there were no HTM debt securities considered past due at March 31, 2022.
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 of cash flows, as of March 31, 2022, Huntington has concluded that except for one municipal bond classified as an AFS debt security for which a charge-off of $4 million was recognized, it expects to receive all contractual cash flows from each security held in its AFS and HTM debt securities portfolio. There was no allowance related to investment securities as of March 31, 2022 or December 31, 2021.