Quarterly report pursuant to Section 13 or 15(d)

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

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DERIVATIVE FINANCIAL INSTRUMENTS (Tables)
3 Months Ended
Mar. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Asset and liability derivatives included in accrued income and other assets
The following table presents the fair values and notional values of all derivative instruments included in the Unaudited Consolidated Balance Sheets. Amounts in the table below are presented gross without the impact of any net collateral arrangements.
At March 31, 2024 At December 31, 2023
(dollar amounts in millions) Notional Value Asset Liability Notional Value Asset Liability
Derivatives designated as Hedging Instruments
Interest rate contracts $ 41,517  $ 842  $ 704  $ 38,017  $ 868  $ 519 
Foreign exchange contracts 230  —  222  — 
Derivatives not designated as Hedging Instruments
Interest rate contracts 42,315  798  838  41,526  718  757 
Foreign exchange contracts 4,640  47  34  5,257  69  76 
Credit contracts 346  —  381  — 
Commodities contracts 608  47  46  681  62  60 
Equity contracts 820  759  — 
Total contracts $ 90,476  $ 1,740  $ 1,626  $ 86,843  $ 1,723  $ 1,421 
Gains and (losses) recognized in other comprehensive income (loss) (OCI) for derivatives designated as effective cash flow hedges
The following table presents the amount of gain or loss recognized in income for derivatives not designated as hedging instruments under ASC Subtopic 815-10 in the Unaudited Consolidated Income Statement.
Location of Gain or (Loss) Recognized in Income
on Derivative
Amount of Gain or (Loss) Recognized in Income on Derivative
Three Months Ended
(dollar amounts in millions) March 31, 2024 March 31, 2023
Interest rate contracts:
Customer Capital markets fees $ $
Mortgage banking Mortgage banking income (11)
Interest rate swaptions Other noninterest income —  (1)
Foreign exchange contracts Capital markets fees 11  12 
Credit contracts
Other noninterest income
(2) — 
Commodities contracts Capital markets fees
Equity contracts Other noninterest expense (2) (1)
Total $ $ 28 
Gross notional values of derivatives used in asset and liability management activities
The following table presents the gross notional values of derivatives used in Huntington’s asset and liability management activities at March 31, 2024 and December 31, 2023, identified by the underlying interest rate-sensitive instruments.
(dollar amounts in millions) Fair Value Hedges Cash Flow Hedges Economic Hedges Total
At March 31, 2024
Instruments associated with:
Investment securities $ 11,649  $ —  $ —  $ 11,649 
Loans —  17,300  175  17,475 
Long-term debt 12,568  —  —  12,568 
Total notional value $ 24,217  $ 17,300  $ 175  $ 41,692 
At December 31, 2023
Instruments associated with:
Investment securities $ 11,649  $ —  $ —  $ 11,649 
Loans —  16,675  175  16,850 
Long-term debt 9,693  —  —  9,693 
Total notional value $ 21,342  $ 16,675  $ 175  $ 38,192 
Increase or (decrease) to interest expense for derivatives designated as fair value hedges
The following table presents the change in fair value for derivatives designated as fair value hedges as well as the offsetting change in fair value on the hedged item.
Three Months Ended
(dollar amounts in millions) March 31, 2024 March 31, 2023
Interest rate contracts
Change in fair value of interest rate swaps hedging investment securities (1) $ 71  $ (182)
Change in fair value of hedged investment securities (1) (72) 181 
Change in fair value of interest rate swaps hedging long-term debt (2) (128) 116 
Change in fair value of hedged long term debt (2) 128  (116)
(1)Recognized in Interest income—available-for-sale securities—taxable in the Unaudited Consolidated Statements of Income.
(2)Recognized in Interest expense—long-term debt in the Unaudited Consolidated Statements of Income.
Amounts recorded on the balance sheet related to cumulative basis adjustments
The following amounts were recorded on the balance sheet related to cumulative basis adjustments for fair value hedges.
Amortized Cost Cumulative Amount of Fair Value Hedging Adjustment To Hedged Items
(dollar amounts in millions) At March 31, 2024 At December 31, 2023 At March 31, 2024 At December 31, 2023
Assets
Investment securities (1) $ 17,967  $ 18,241  $ (770) $ (698)
Liabilities
Long-term debt (2) 12,250  9,909  (243) (115)
(1)Amounts include the amortized cost basis of closed portfolios used to designate hedging relationships under the portfolio layer method. The hedged item is a layer of the closed portfolio which is expected to be remaining at the end of the hedging relationship. As of March 31, 2024, the amortized cost basis of the closed portfolios used in these hedging relationships was $17.4 billion, the cumulative basis adjustments associated with these hedging relationships was $680 million, and the notional amounts of the designated hedging instruments were $11.0 billion.
(2)Excluded from the above table are the cumulative amount of fair value hedge adjustments remaining for long-term debt for which hedge accounting has been discontinued in the amounts of $(66) million at March 31, 2024 and $(69) million at December 31, 2023.
Offsetting of financial assets and derivatives assets
The following tables present the gross amounts of these assets and liabilities with any offsets to arrive at the net amounts recognized in the Unaudited Consolidated Balance Sheets.
Offsetting of Financial Assets and Derivative Assets
Gross amounts
offset in the unaudited
consolidated
balance sheets
Net amounts of
assets
presented in
the unaudited
consolidated
balance sheets
Gross amounts not offset in the
unaudited consolidated
balance sheets
(dollar amounts in millions) Gross amounts of recognized assets Financial instruments Cash collateral received Net amount
At March 31, 2024 $ 1,740  $ (1,399) $ 341  $ —  $ (10) $ 331 
At December 31, 2023 1,723  (1,330) 393  (45) (4) 344 
MSR Derivative Hedging The notional value of the derivative financial instruments, the corresponding trading assets and liabilities positions, and net trading gains (losses) related to MSR hedging activity is summarized in the following tables.
(dollar amounts in millions) At March 31, 2024 At December 31, 2023
Notional value $ 1,428  $ 1,668 
Trading liabilities (77) (69)
Three Months Ended
(dollar amounts in millions) March 31, 2024 March 31, 2023
Trading (losses) gains
$ (19) $
Offsetting of financial liabilities and derivative liabilities
Offsetting of Financial Liabilities and Derivative Liabilities
Gross amounts offset in the unaudited consolidated balance sheets Net amounts of liabilities presented in the unaudited consolidated balance sheets Gross amounts not offset in the
unaudited consolidated
balance sheets
(dollar amounts in millions) Gross amounts of recognized liabilities Financial instruments Cash collateral delivered Net amount
At March 31, 2024 $ 1,626  $ (872) $ 754  $ (23) $ (87) $ 644 
At December 31, 2023 1,421  (751) 670  —  (93) 577