Annual report pursuant to Section 13 and 15(d)

FAIR VALUES OF ASSETS AND LIABILITIES (Tables)

v3.22.4
FAIR VALUES OF ASSETS AND LIABILITIES (Tables)
12 Months Ended
Dec. 31, 2022
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, 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 CMO —  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 —  —  — 
Total available-for-sale securities 103  19,978  3,342  —  23,423 
Other securities 31  —  —  32 
Loans held for sale —  520  —  —  520 
Loans held for investment —  169  16  —  185 
MSRs —  —  494  —  494 
Other assets:
Derivative assets —  2,161  (1,808) 356 
Assets held in trust for deferred compensation plans 155  —  —  —  155 
Liabilities
Derivative liabilities —  2,332  (1,345) 992 
Fair Value Measurements at Reporting Date Using Netting Adjustments (1) At December 31, 2021
(dollar amounts in millions) Level 1 Level 2 Level 3
Assets
Trading account securities:
Municipal securities $ —  $ 46  $ —  $ —  $ 46 
Available-for-sale securities:
U.S. Treasury securities —  —  — 
Residential CMOs —  4,649  —  —  4,649 
Residential MBS —  15,508  —  —  15,508 
Commercial MBS —  1,865  —  —  1,865 
Other agencies —  248  —  —  248 
Municipal securities —  49  3,477  —  3,526 
Private-label CMO —  86  20  —  106 
Asset-backed securities —  312  70  —  382 
Corporate debt —  2,167  —  —  2,167 
Other securities/sovereign debt —  —  — 
Total available-for-sale securities 24,888  3,567  —  28,460 
Other securities 65  —  —  72 
Loans held for sale —  1,270  —  —  1,270 
Loans held for investment —  152  19  —  171 
MSRs —  —  351  —  351 
Other assets:
Derivative assets —  1,055  10  (465) 600 
Assets held in trust for deferred compensation plans 156  —  —  —  156 
Liabilities
Derivative liabilities —  737  (624) 119 
(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, 2022
Opening balance $ 351  $ $ 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) —  —  — 
Interest and fee income —  —  (5) (3) —  — 
Provision for credit losses —  —  (4) —  —  — 
Included in OCI —  —  (262) —  (1) — 
Purchases/originations 85  —  1,087  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  $ $ 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  1,835  11  115  — 
Sales —  —  (369) —  —  — 
Repayments —  —  —  —  —  (4)
Settlements (80) —  (893) (55) — 
Closing balance $ 351  $ $ 3,477  $ 20  $ 70  $ 19 
Change in unrealized gains or losses for the period included in earnings 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) —  —  — 
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, 2020
Opening balance $ $ $ 2,999  $ $ 48  $ 26 
Fair value election for servicing assets previously measured using the amortized method 205  —  —  —  —  — 
Transfers out of Level 3 (1) —  (198) —  —  —  — 
Total gains/losses for the period:
Included in earnings:
Mortgage banking income (104) 233  —  —  —  — 
Interest and fee income —  —  (2) —  —  — 
Included in OCI —  —  65  —  —  — 
Purchases/originations 102  —  623  28  — 
Repayments —  —  —  —  —  (3)
Settlements —  —  (734) —  (66) — 
Closing balance $ 210  $ 41  $ 2,951  $ $ 10  $ 23 
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 $ (104) $ 34  $ —  $ —  $ —  $ — 
Change in unrealized gains or losses for the period included in other comprehensive income for assets held at the end of the reporting period —  —  68  —  —  — 
(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, 2022
Opening balance $ 351  $ $ 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) —  —  — 
Interest and fee income —  —  (5) (3) —  — 
Provision for credit losses —  —  (4) —  —  — 
Included in OCI —  —  (262) —  (1) — 
Purchases/originations 85  —  1,087  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  $ $ 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  1,835  11  115  — 
Sales —  —  (369) —  —  — 
Repayments —  —  —  —  —  (4)
Settlements (80) —  (893) (55) — 
Closing balance $ 351  $ $ 3,477  $ 20  $ 70  $ 19 
Change in unrealized gains or losses for the period included in earnings 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) —  —  — 
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, 2020
Opening balance $ $ $ 2,999  $ $ 48  $ 26 
Fair value election for servicing assets previously measured using the amortized method 205  —  —  —  —  — 
Transfers out of Level 3 (1) —  (198) —  —  —  — 
Total gains/losses for the period:
Included in earnings:
Mortgage banking income (104) 233  —  —  —  — 
Interest and fee income —  —  (2) —  —  — 
Included in OCI —  —  65  —  —  — 
Purchases/originations 102  —  623  28  — 
Repayments —  —  —  —  —  (3)
Settlements —  —  (734) —  (66) — 
Closing balance $ 210  $ 41  $ 2,951  $ $ 10  $ 23 
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 $ (104) $ 34  $ —  $ —  $ —  $ — 
Change in unrealized gains or losses for the period included in other comprehensive income for assets held at the end of the reporting period —  —  68  —  —  — 
(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, 2022
Assets
Loans held for sale $ 520  $ 513  $ $ —  $ —  $ — 
Loans held for investment 185  190  (5) 11  11  — 
At December 31, 2021
Assets
Loans held for sale $ 1,270  $ 1,237  $ 33  $ —  $ —  $ — 
Loans held for investment 171  177  $ (6) — 
The following table presents the net (losses) gains from fair value changes:
  Net (losses) gains from fair value
changes Year Ended December 31,
(dollar amounts in millions) 2022 2021 2020
Assets
Loans held for sale (1)
$ (26) $ (31) $ 38 
Loans held for investment (1)
(1)The net (losses) gains 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 Other Unobservable Inputs (Level 3) Total Gains/(Losses) Year Ended
(dollar amounts in millions) December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 December 31, 2020
Collateral-dependent loans $ 16  $ 39  $ (1) $ (4) $ (43)
Loans held for sale —  —  —  —  (63)
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 on a recurring and nonrecurring basis:
Quantitative Information about Level 3 Fair Value Measurements
At December 31, 2022(1) At December 31, 2021(1)
(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 % - 40  % % % - 23  % 12  %
Spread over forward interest rate swap rates % - 13  % % % - 11  % %
Municipal securities and asset-backed securities Discounted cash flow Discount rate % - % % —  % - % %
Cumulative default —  % - 64  % % —  % - 64  % %
Loss given default 20  % - 20  % 20  % % - 80  % 23  %
(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, 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 —  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 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 
At December 31, 2021
Financial Assets
Cash and short-term assets $ 5,914  $ —  $ —  $ 5,914  $ 5,914 
Trading account securities —  —  46  46  46 
Available-for-sale securities —  —  28,460  28,460  28,460 
Held-to-maturity securities 12,447  —  —  12,447  12,489 
Other securities 576  —  72  648  648 
Loans held for sale —  406  1,270  1,676  1,621 
Net loans and leases (1) 109,066  —  171  109,237  109,695 
Derivative assets —  —  600  600  600 
Assets held in trust for deferred compensation plans —  —  156  156  156 
Financial Liabilities
Deposits 143,263  —  —  143,263  143,574 
Short-term borrowings 334  —  —  334  334 
Long-term debt 7,108  —  —  7,108  7,319 
Derivative liabilities —  —  119  119  119 
(1)Includes collateral-dependent loans.
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, 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  —  —  32 
Loans held for sale —  520  —  529 
Net loans and leases —  169  112,422  —  112,591 
Derivative assets —  2,161  (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  (1,345) 992 
At December 31, 2021
Financial Assets
Trading account securities $ —  $ 46  $ —  $ —  $ 46 
Available-for-sale securities 24,888  3,567  —  28,460 
Held-to-maturity securities —  12,489  —  —  12,489 
Other securities (2) 65  —  —  72 
Loans held for sale —  1,270  351  —  1,621 
Net loans and leases —  152  109,543  —  109,695 
Derivative assets —  1,055  10  (465) 600 
Financial Liabilities
Deposits —  139,047  4,527  —  143,574 
Short-term borrowings —  334  —  —  334 
Long-term debt —  6,441  878  —  7,319 
Derivative liabilities —  737  (624) 119 
(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.