OTHER COMPREHENSIVE INCOME
The components of Huntington’s OCI for the three-month periods ended March 31, 2020 and 2019, were as follows:
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Three Months Ended
March 31, 2020 |
|
Tax (expense) |
(dollar amounts in millions) |
Pretax |
|
Benefit |
|
After-tax |
Unrealized holding gains (losses) on available-for-sale securities arising during the period |
$ |
217 |
|
|
$ |
(48 |
) |
|
$ |
169 |
|
Less: Reclassification adjustment for realized net losses (gains) included in net income |
5 |
|
|
(1 |
) |
|
4 |
|
Net change in unrealized holding gains (losses) on available-for-sale securities |
222 |
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|
(49 |
) |
|
173 |
|
Net change in fair value on cash flow hedges |
396 |
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|
(88 |
) |
|
308 |
|
Net change in pension and other post-retirement obligations |
2 |
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|
— |
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|
2 |
|
Total other comprehensive income (loss) |
$ |
620 |
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|
$ |
(137 |
) |
|
$ |
483 |
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Three Months Ended
March 31, 2019 |
|
Tax (expense) |
(dollar amounts in millions) |
Pretax |
|
Benefit |
|
After-tax |
Unrealized holding gains (losses) on available-for-sale securities arising during the period |
$ |
184 |
|
|
$ |
(41 |
) |
|
$ |
143 |
|
Less: Reclassification adjustment for realized net losses (gains) included in net income |
4 |
|
|
(1 |
) |
|
3 |
|
Net change in unrealized holding gains (losses) on available-for-sale securities |
188 |
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|
(42 |
) |
|
146 |
|
Net change in fair value on cash flow hedges |
8 |
|
|
(1 |
) |
|
7 |
|
Net change in pension and other post-retirement obligations |
1 |
|
|
— |
|
|
1 |
|
Total other comprehensive income (loss) |
$ |
197 |
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|
$ |
(43 |
) |
|
$ |
154 |
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Activity in accumulated OCI for the three-month periods ended March 31, 2020 and 2019, were as follows:
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(dollar amounts in millions) |
Unrealized gains (losses) on
debt securities (1)
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Change in fair value related to cash flow hedges |
|
Unrealized gains
(losses) for
pension and
other post-
retirement
obligations
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Total |
Three Months Ended March 31, 2020 |
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Balance, beginning of period |
$ |
(28 |
) |
|
$ |
23 |
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|
$ |
(251 |
) |
|
$ |
(256 |
) |
Other comprehensive income before reclassifications |
169 |
|
|
308 |
|
|
— |
|
|
477 |
|
Amounts reclassified from accumulated OCI to earnings |
4 |
|
|
— |
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|
2 |
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|
6 |
|
Period change |
173 |
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|
308 |
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|
2 |
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|
483 |
|
Balance, end of period |
$ |
145 |
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|
$ |
331 |
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|
$ |
(249 |
) |
|
$ |
227 |
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Three Months Ended March 31, 2019 |
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Balance, beginning of period |
$ |
(363 |
) |
|
$ |
— |
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|
$ |
(246 |
) |
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$ |
(609 |
) |
Other comprehensive income before reclassifications |
143 |
|
|
7 |
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|
— |
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|
150 |
|
Amounts reclassified from accumulated OCI to earnings |
3 |
|
|
— |
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|
1 |
|
|
4 |
|
Period change |
146 |
|
|
7 |
|
|
1 |
|
|
154 |
|
Balance, end of period |
$ |
(217 |
) |
|
$ |
7 |
|
|
$ |
(245 |
) |
|
$ |
(455 |
) |
(1)
AOCI amounts at March 31, 2020, December 31, 2019 and March 31, 2019 include $87 million, $121 million and $134 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.
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