Annual report pursuant to Section 13 and 15(d)

INVESTMENT SECURITIES AND OTHER SECURITIES

v3.22.4
INVESTMENT SECURITIES AND OTHER SECURITIES
12 Months Ended
Dec. 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.
Unrealized
(dollar amounts in millions) Amortized
Cost (1)(2)
Gross
Gains
Gross
Losses
Fair Value
At December 31, 2022
Available-for-sale securities:
U.S. Treasury $ 103  $ —  $ —  $ 103 
Federal agencies:
Residential CMO 3,336  —  (422) 2,914 
Residential MBS 14,349  (2,090) 12,263 
Commercial MBS 2,565  —  (612) 1,953 
Other agencies 190  (9) 182 
Total U.S. Treasury, federal agency, and other agency securities 20,543  (3,133) 17,415 
Municipal securities 3,527  (238) 3,290 
Private-label CMO 146  —  (18) 128 
Asset-backed securities 416  —  (44) 372 
Corporate debt 2,467  132  (385) 2,214 
Other securities/Sovereign debt
—  — 
Total available-for-sale securities $ 27,103  $ 138  $ (3,818) $ 23,423 
Held-to-maturity securities:
Federal agencies:
Residential CMO $ 4,970  $ $ (714) $ 4,260 
Residential MBS 10,295  —  (1,375) 8,920 
Commercial MBS 1,652  —  (204) 1,448 
Other agencies 133  —  (9) 124 
Total federal agency and other agency securities 17,050  (2,302) 14,752 
Municipal securities —  — 
Total held-to-maturity securities $ 17,052  $ $ (2,302) $ 14,754 
Other securities, at cost:
Non-marketable equity securities:
Federal Home Loan Bank stock $ 312  $ —  $ —  $ 312 
Federal Reserve Bank stock 500  —  —  500 
Equity securities 10  —  —  10 
Other securities, at fair value
Mutual funds 31  —  —  31 
Equity securities —  — 
Total other securities $ 854  $ —  $ —  $ 854 
(1)Amortized cost amounts exclude accrued interest receivable, which is recorded within accrued income and other receivables on the Consolidated Balance Sheets. At December 31, 2022, accrued interest receivable on available-for-sale securities and held-to-maturity securities totaled $64 million and $39 million, respectively.
(2)Excluded from the amortized cost are portfolio level basis adjustments for securities designated in fair value hedges under the portfolio layer method. The basis adjustments totaled $849 million and represent a reduction to the amortized cost of the securities being hedged. The securities being hedged under the portfolio layer method are primarily Residential CMO and Residential MBS securities.
Unrealized
(dollar amounts in millions) Amortized
Cost (1)
Gross
Gains
Gross
Losses
Fair Value
At 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 exclude 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. Expected maturities may differ from contractual maturities as issuers may have the right to call or prepay obligations with or without incurring penalties.
At December 31,
2022 2021
(dollar amounts in millions)
Amortized
Cost
Fair
Value
Amortized
Cost
Fair
Value
Available-for-sale securities:
Under 1 year $ 518  $ 511  $ 377  $ 374 
After 1 year through 5 years 2,182  2,033  1,888  1,880 
After 5 years through 10 years 3,106  2,814  3,166  3,180 
After 10 years 21,297  18,065  23,075  23,026 
Total available-for-sale securities $ 27,103  $ 23,423  $ 28,506  $ 28,460 
Held-to-maturity securities:
Under 1 year $ —  $ —  $ $
After 1 year through 5 years 72  68  162  164 
After 5 years through 10 years 71  66  44  45 
After 10 years 16,909  14,620  12,239  12,278 
Total held-to-maturity securities $ 17,052  $ 14,754  $ 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.
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
At December 31, 2022
Available-for-sale securities:
Federal agencies:
Residential CMO $ 2,096  $ (224) $ 818  $ (198) $ 2,914  $ (422)
Residential MBS 2,455  (286) 9,490  (1,804) 11,945  (2,090)
Commercial MBS 1,090  (249) 863  (363) 1,953  (612)
Other agencies 40  (1) 56  (8) 96  (9)
Total federal agency and other agency securities 5,681  (760) 11,227  (2,373) 16,908  (3,133)
Municipal securities 2,298  (174) 807  (64) 3,105  (238)
Private-label CMO 64  (13) 43  (5) 107  (18)
Asset-backed securities 174  (10) 199  (34) 373  (44)
Corporate debt 727  (105) 1,487  (280) 2,214  (385)
Total temporarily impaired available-for-sale securities $ 8,944  $ (1,062) $ 13,763  $ (2,756) $ 22,707  $ (3,818)
Held-to-maturity securities:
Federal agencies:
Residential CMO $ 1,702  $ (238) $ 2,283  $ (476) $ 3,985  $ (714)
Residential MBS 4,151  (462) 4,711  (913) 8,862  (1,375)
Commercial MBS 1,201  (154) 247  (50) 1,448  (204)
Other agencies 124  (9) —  —  124  (9)
Total federal agency and other agency securities 7,178  (863) 7,241  (1,439) 14,419  (2,302)
Total temporarily impaired held-to-maturity securities $ 7,178  $ (863) $ 7,241  $ (1,439) $ 14,419  $ (2,302)
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
At 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 2022 and 2021, Huntington transferred $4.2 billion and $3.0 billion, respectively, of securities from the AFS portfolio to the HTM portfolio. At the time of the transfers, AOCI included $58 million of net unrealized losses and $2 million of unrealized gains, respectively, attributed to these securities. The gain or loss will be amortized into interest income over the remaining life of the securities.
At December 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 $26.9 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 December 31, 2022 or December 31, 2021. At December 31, 2022, all HTM debt securities are considered AAA rated. In addition, there were no HTM debt securities considered past due at December 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 December 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 during 2022, 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 securities as of December 31, 2022 or December 31, 2021.