| OTHER COMPREHENSIVE INCOME
The components of Huntington’s OCI in the three years ended December 31, 2019, 2018, and 2017, were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019 |
|
Tax (expense) |
(dollar amounts in millions) |
Pretax |
|
Benefit |
|
After-tax |
Unrealized holding gains (losses) on available-for-sale securities arising during the period |
$ |
403 |
|
|
$ |
(89 |
) |
|
$ |
314 |
|
Less: Reclassification adjustment for realized net losses (gains) included in net income |
26 |
|
|
(5 |
) |
|
21 |
|
Net change in unrealized holding gains (losses) on available-for-sale securities |
429 |
|
|
(94 |
) |
|
335 |
|
Net change in fair value on cash flow hedges |
26 |
|
|
(3 |
) |
|
23 |
|
Net change in pension and other post-retirement obligations |
(7 |
) |
|
2 |
|
|
(5 |
) |
Total other comprehensive income (loss) |
$ |
448 |
|
|
$ |
(95 |
) |
|
$ |
353 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018 |
|
|
|
Tax (expense) |
|
|
(dollar amounts in millions) |
Pretax |
|
Benefit |
|
After-tax |
Unrealized holding gains (losses) on available-for-sale securities arising during the period |
$ |
(151 |
) |
|
$ |
35 |
|
|
$ |
(116 |
) |
Less: Reclassification adjustment for realized net losses (gains) included in net income |
41 |
|
|
(9 |
) |
|
32 |
|
Net change in unrealized holding gains (losses) on available-for-sale securities |
(110 |
) |
|
26 |
|
|
(84 |
) |
Net change in pension and other post-retirement obligations |
4 |
|
|
— |
|
|
4 |
|
Total other comprehensive income (loss) |
$ |
(106 |
) |
|
$ |
26 |
|
|
$ |
(80 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017 |
|
|
|
Tax (expense) |
|
|
(dollar amounts in millions) |
Pretax |
|
Benefit |
|
After-tax |
Noncredit-related impairment recoveries (losses) on debt securities not expected to be sold |
$ |
4 |
|
|
$ |
(2 |
) |
|
$ |
2 |
|
|
Unrealized holding gains (losses) on available-for-sale debt securities
arising during the period
|
(87 |
) |
|
31 |
|
|
(56 |
) |
Less: Reclassification adjustment for net gains (losses) included in net income |
26 |
|
|
(9 |
) |
|
17 |
|
Net change in unrealized holding gains (losses) on available-for-sale debt securities |
(57 |
) |
|
20 |
|
|
(37 |
) |
Net change in unrealized holding gains (losses) on available-for-sale equity securities |
1 |
|
|
(1 |
) |
|
— |
|
|
Unrealized gains and losses on derivatives used in cash flow hedging relationships
arising during the period
|
3 |
|
|
(1 |
) |
|
2 |
|
Less: Reclassification adjustment for net losses (gains) losses included in net income |
1 |
|
|
— |
|
|
1 |
|
Net change in unrealized gains (losses) on derivatives used in cash flow hedging relationships |
4 |
|
|
(1 |
) |
|
3 |
|
Net change in pension and post-retirement obligations |
— |
|
|
— |
|
|
— |
|
Total other comprehensive income (loss) |
$ |
(52 |
) |
|
$ |
18 |
|
|
$ |
(34 |
) |
Activity in accumulated OCI for the two years ended December 31, 2019 and 2018 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollar amounts in millions) |
Unrealized
gains (losses) on
debt
securities (1)
|
|
Change in fair value related to cash flow hedges |
|
Unrealized
gains (losses) for
pension and other
post-retirement
obligations
|
|
Total |
December 31, 2017 |
$ |
(278 |
) |
|
$ |
— |
|
|
$ |
(250 |
) |
|
$ |
(528 |
) |
Cumulative-effect adjustments (ASU 2016-01) |
(1 |
) |
|
|
|
|
|
(1 |
) |
Other comprehensive income before reclassifications |
(116 |
) |
|
— |
|
|
— |
|
|
(116 |
) |
Amounts reclassified from accumulated OCI to earnings |
32 |
|
|
— |
|
|
4 |
|
|
36 |
|
Period change |
(84 |
) |
|
— |
|
|
4 |
|
|
(80 |
) |
December 31, 2018 |
(363 |
) |
|
— |
|
|
(246 |
) |
|
(609 |
) |
Other comprehensive income before reclassifications |
314 |
|
|
23 |
|
|
— |
|
|
337 |
|
Amounts reclassified from accumulated OCI to earnings |
21 |
|
|
— |
|
|
(5 |
) |
|
16 |
|
Period change |
335 |
|
|
23 |
|
|
(5 |
) |
|
353 |
|
December 31, 2019 |
$ |
(28 |
) |
|
$ |
23 |
|
|
$ |
(251 |
) |
|
$ |
(256 |
) |
(1)
AOCI amounts at December 31, 2019, 2018, and 2017 include $121 million, $137 million, and $95 million, respectively, net of unrealized losses on securities transferred from the available-for-sale securities portfolio to the held-to-maturity securities portfolio. The net unrealized losses will be recognized in earnings over the remaining life of the security using the effective interest method.
|