Annual report pursuant to Section 13 and 15(d)

FAIR VALUES OF ASSETS AND LIABILITIES (Tables)

v3.24.0.1
FAIR VALUES OF ASSETS AND LIABILITIES (Tables)
 12 Months Ended
Dec. 31, 2023
Fair Value Disclosures [Abstract]  
Assets and liabilities measured at fair value on a recurring basis
Fair Value Measurements at Reporting Date Using Netting Adjustments (1) At December 31, 2023
(dollar amounts in millions) Level 1 Level 2 Level 3
Assets
Trading account securities:
U.S. Treasury securities $ 91  $ —  $ —  $ —  $ 91 
Other agencies —  2  —  —  2 
Municipal securities —  32  —  —  32 
Total trading account securities
 91  34  —  —  125 
Available-for-sale securities:
U.S. Treasury securities 2,856  —  —  —  2,856 
Residential CMO —  3,184  —  —  3,184 
Residential MBS —  11,382  —  —  11,382 
Commercial MBS —  1,827  —  —  1,827 
Other agencies —  155  —  —  155 
Municipal securities —  38  3,335  —  3,373 
Private-label CMO —  99  20  —  119 
Asset-backed securities —  281  75  —  356 
Corporate debt —  2,043  —  —  2,043 
Other securities/sovereign debt —  10  —  —  10 
Total available-for-sale securities 2,856  19,019  3,430  —  25,305 
Other securities 30  2  —  —  32 
Loans held for sale —  506  —  —  506 
Loans held for investment —  120  54  —  174 
MSRs —  —  515  —  515 
Other assets:
Derivative assets —  1,720  3  (1,330) 393 
Assets held in trust for deferred compensation plans 177  —  —  —  177 
Liabilities
Derivative liabilities $ —  $ 1,416  $ 5  $ (751) $ 670 
Fair Value Measurements at Reporting Date Using Netting Adjustments (1) At December 31, 2022
(dollar amounts in millions) Level 1 Level 2 Level 3
Assets
Trading account securities:
Municipal securities $ —  $ 19  $ —  $ —  $ 19 
Available-for-sale securities:
U.S. Treasury securities 103  —  —  —  103 
Residential CMOs —  2,914  —  —  2,914 
Residential MBS —  12,263  —  —  12,263 
Commercial MBS —  1,953  —  —  1,953 
Other agencies —  182  —  —  182 
Municipal securities —  42  3,248  —  3,290 
Private-label CMO —  108  20  —  128 
Asset-backed securities —  298  74  —  372 
Corporate debt —  2,214  —  —  2,214 
Other securities/sovereign debt —  4  —  —  4 
Total available-for-sale securities 103  19,978  3,342  —  23,423 
Other securities 31  1  —  —  32 
Loans held for sale —  520  —  —  520 
Loans held for investment —  169  16  —  185 
MSRs —  —  494  —  494 
Other assets:
Derivative assets —  2,161  3  (1,808) 356 
Assets held in trust for deferred compensation plans 155  —  —  —  155 
Liabilities
Derivative liabilities $ —  $ 2,332  $ 5  $ (1,345) $ 992 
(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
Available-for-sale securities Loans held for investment
(dollar amounts in millions) MSRs Derivative
instruments		 Municipal
securities		 Private-
label
CMO		 Asset-
backed
securities
Year Ended December 31, 2023
Opening balance $ 494  $ (2) $ 3,248  $ 20  $ 74  $ 16 
Transfers into Level 3 —  —  —  —  —  41 
Transfers out of Level 3 (1) —  (23) —  —  —  — 
Total gains/losses for the period:
Included in earnings:
Mortgage banking income 7  25  —  —  —  — 
Interest and fee income —  —  (2) (1) —  (3)
Noninterest income —  (2) —  —  —  — 
Included in OCI —  —  73  —  1  — 
Purchases/originations 63  —  928  1  —  — 
Sales (1) —  —  —  —  — 
Settlements (48) —  (912) —  —  — 
Closing balance $ 515  $ (2) $ 3,335  $ 20  $ 75  $ 54 
Change in unrealized gains or losses for the period included in earnings for assets held at end of the reporting date $ 7  $ (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 —  —  47  —  1  — 
Level 3 Fair Value Measurements
Available-for-sale securities Loans held for investment
(dollar amounts in millions) MSRs
Derivative
instruments
Municipal
securities
 Private-
label
CMO
Asset-
backed
securities
Year Ended December 31, 2022
Opening balance $ 351  $ 4  $ 3,477  $ 20  $ 70  $ 19 
Transfers out of Level 3 (1) —  (3) —  —  —  — 
Total gains/losses for the period:
Included in earnings:
Mortgage banking income 114  (3) —  —  —  1 
Interest and fee income —  —  (5) (3) —  — 
Provision for credit losses —  —  (4) —  —  — 
Included in OCI —  —  (262) —  (1) — 
Purchases/originations/acquisitions 85  —  1,087  4  31  — 
Repayments —  —  —  —  —  (4)
Settlements (56) —  (1,045) (1) (26) — 
Closing balance $ 494  $ (2) $ 3,248  $ 20  $ 74  $ 16 
Change in unrealized gains or losses for the period included in earnings for assets held at end of the reporting date $ 114  $ (8) $ —  $ —  $ —  $ — 
Change in unrealized gains or losses for the period included in other comprehensive income for assets held at the end of the reporting period —  —  (257) —  (1) — 
Level 3 Fair Value Measurements
      Available-for-sale securities Loans held for investment
(dollar amounts in millions) MSRs
Derivative
instruments
Municipal
securities
Private
label CMO
Asset-
backed
securities
Year Ended December 31, 2021
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 (or changes in net assets) 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) —  —  — 
(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
Available-for-sale securities Loans held for investment
(dollar amounts in millions) MSRs Derivative
instruments		 Municipal
securities		 Private-
label
CMO		 Asset-
backed
securities
Year Ended December 31, 2023
Opening balance $ 494  $ (2) $ 3,248  $ 20  $ 74  $ 16 
Transfers into Level 3 —  —  —  —  —  41 
Transfers out of Level 3 (1) —  (23) —  —  —  — 
Total gains/losses for the period:
Included in earnings:
Mortgage banking income 7  25  —  —  —  — 
Interest and fee income —  —  (2) (1) —  (3)
Noninterest income —  (2) —  —  —  — 
Included in OCI —  —  73  —  1  — 
Purchases/originations 63  —  928  1  —  — 
Sales (1) —  —  —  —  — 
Settlements (48) —  (912) —  —  — 
Closing balance $ 515  $ (2) $ 3,335  $ 20  $ 75  $ 54 
Change in unrealized gains or losses for the period included in earnings for assets held at end of the reporting date $ 7  $ (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 —  —  47  —  1  — 
Level 3 Fair Value Measurements
Available-for-sale securities Loans held for investment
(dollar amounts in millions) MSRs
Derivative
instruments
Municipal
securities
 Private-
label
CMO
Asset-
backed
securities
Year Ended December 31, 2022
Opening balance $ 351  $ 4  $ 3,477  $ 20  $ 70  $ 19 
Transfers out of Level 3 (1) —  (3) —  —  —  — 
Total gains/losses for the period:
Included in earnings:
Mortgage banking income 114  (3) —  —  —  1 
Interest and fee income —  —  (5) (3) —  — 
Provision for credit losses —  —  (4) —  —  — 
Included in OCI —  —  (262) —  (1) — 
Purchases/originations/acquisitions 85  —  1,087  4  31  — 
Repayments —  —  —  —  —  (4)
Settlements (56) —  (1,045) (1) (26) — 
Closing balance $ 494  $ (2) $ 3,248  $ 20  $ 74  $ 16 
Change in unrealized gains or losses for the period included in earnings for assets held at end of the reporting date $ 114  $ (8) $ —  $ —  $ —  $ — 
Change in unrealized gains or losses for the period included in other comprehensive income for assets held at the end of the reporting period —  —  (257) —  (1) — 
Level 3 Fair Value Measurements
      Available-for-sale securities Loans held for investment
(dollar amounts in millions) MSRs
Derivative
instruments
Municipal
securities
Private
label CMO
Asset-
backed
securities
Year Ended December 31, 2021
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 (or changes in net assets) 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) —  —  — 
(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
At December 31, 2023
Loans held for sale $ 506  $ 489  $ 17  $ —  $ —  $ — 
Loans held for investment 174  184  (10) 2  3  (1)
At December 31, 2022
Loans held for sale $ 520  $ 513  $ 7  $ —  $ —  $ — 
Loans held for investment 185  190  $ (5) 11  11  — 
The following table presents the net (losses) gains from fair value changes:
 
Year Ended December 31,
(dollar amounts in millions) 2023 2022 2021
Loans held for sale (1)
$ 10  $ (26) $ (31)
Loans held for investment (5) 1  (1)
(1)The net gains (losses) 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 Significant Unobservable Inputs (Level 3) Total Gains/(Losses) Year Ended
(dollar amounts in millions) December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 December 31, 2021
Collateral-dependent loans $ 40  $ 16  $ (21) $ (1) $ (4)
Quantitative information about significant unobservable level 3 fair value measurement inputs
The following table presents quantitative information about the significant unobservable inputs for assets and liabilities measured at fair value:
Quantitative Information about Level 3 Fair Value Measurements (1)
At December 31, 2023 At December 31, 2022
(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 4  % - 37  % 9  % 5  % - 40  % 7  %
Spread over forward interest rate swap rates 5  % - 13  % 5  % 5  % - 13  % 6  %
Municipal securities and asset-backed securities Discounted cash flow Discount rate 4  % - 6  % 5  % 5  % - 5  % 5  %
Cumulative default —  % - 64  % 6  % —  % - 64  % 7  %
Loss given default 20  % - 20  % 20  % 20  % - 20  % 20  %
(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
At December 31, 2023
Financial Assets
Cash and short-term assets $ 10,323  $ —  $ —  $ 10,323  $ 10,323 
Trading account securities —  —  125  125  125 
Available-for-sale securities —  —  25,305  25,305  25,305 
Held-to-maturity securities 15,750  —  —  15,750  13,718 
Other securities 693  —  32  725  725 
Loans held for sale —  10  506  516  516 
Net loans and leases (1) 119,553  —  174  119,727  116,781 
Derivative assets —  —  393  393  393 
Assets held in trust for deferred compensation plans —  —  177  177  177 
Financial Liabilities
Deposits (2) 151,230  —  —  151,230  151,183 
Short-term borrowings 620  —  —  620  620 
Long-term debt 12,394  —  —  12,394  12,276 
Derivative liabilities —  —  670  670  670 
At December 31, 2022
Financial Assets
Cash and short-term assets $ 6,918  $ —  $ —  $ 6,918  $ 6,918 
Trading account securities —  —  19  19  19 
Available-for-sale securities —  —  23,423  23,423  23,423 
Held-to-maturity securities 17,052  —  —  17,052  14,754 
Other securities 822  —  32  854  854 
Loans held for sale —  9  520  529  529 
Net loans and leases (1) 117,217  —  185  117,402  112,591 
Derivative assets —  —  356  356  356 
Assets held in trust for deferred compensation plans —  —  155  155  155 
Financial Liabilities
Deposits (2) 147,914  —  —  147,914  147,796 
Short-term borrowings 2,027  —  —  2,027  2,027 
Long-term debt 9,686  —  —  9,686  9,564 
Derivative liabilities —  —  992  992  992 
(1)Includes collateral-dependent loans.
(2)Includes $1.4 billion and $462 million in time deposits in excess of the FDIC insurance coverage limit at December 31, 2023 and December 31, 2022, respectively.
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)
At December 31, 2023
Financial Assets
Trading account securities $ 91  $ 34  $ —  $ —  $ 125 
Available-for-sale securities 2,856  19,019  3,430  —  25,305 
Held-to-maturity securities —  13,718  —  —  13,718 
Other securities (2) 30  2  —  —  32 
Loans held for sale —  506  10  —  516 
Net loans and leases —  120  116,661  —  116,781 
Derivative assets —  1,720  3  (1,330) 393 
Financial Liabilities
Deposits —  135,627  15,556  —  151,183 
Short-term borrowings —  620  —  —  620 
Long-term debt —  8,929  3,347  —  12,276 
Derivative liabilities —  1,416  5  (751) 670 
At December 31, 2022
Financial Assets
Trading account securities $ —  $ 19  $ —  $ —  $ 19 
Available-for-sale securities 103  19,978  3,342  —  23,423 
Held-to-maturity securities —  14,754  —  —  14,754 
Other securities (2) 31  1  —  —  32 
Loans held for sale —  520  9  —  529 
Net loans and leases —  169  112,422  —  112,591 
Derivative assets —  2,161  3  (1,808) 356 
Financial Liabilities
Deposits —  142,081  5,715  —  147,796 
Short-term borrowings —  2,027  —  —  2,027 
Long-term debt —  8,680  884  —  9,564 
Derivative liabilities —  2,332  5  (1,345) 992 
(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.