Quarterly report pursuant to Section 13 or 15(d)

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

v3.20.1
DERIVATIVE FINANCIAL INSTRUMENTS (Tables)
3 Months Ended
Mar. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Asset and liability derivatives included in accrued income and other assets
 
March 31, 2020
 
December 31, 2019
(dollar amounts in millions)
Notional Value
 
Asset
 
Liability
 
Notional Value
 
Asset
 
Liability
Derivatives designated as Hedging Instruments
 
 
 
 
 
 
 
 
 
 
 
Interest rate contracts
$
27,415

 
$
971

 
$
72

 
$
25,927

 
$
256

 
$
36

Derivatives not designated as Hedging Instruments
 
 
 
 
 
 
 
 
 
 
 
Interest rate contracts
31,136

 
1,063

 
928

 
27,614

 
420

 
314

Foreign exchange contracts
2,110

 
44

 
42

 
2,173

 
19

 
18

Commodities contracts
2,606

 
306

 
303

 
3,020

 
155

 
152

Equity contracts
408

 

 
27

 
427

 
6

 
1

Total Contracts
$
63,675

 
$
2,384

 
$
1,372

 
$
59,161

 
$
856

 
$
521


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 Condensed Consolidated Income Statement for the three-month periods ended March 31, 2020 and 2019, respectively.
 
 
Location of Gain or (Loss) Recognized in Income
on Derivative
 
Amount of Gain or (Loss) Recognized in Income on Derivative
 
 
 
Three Months Ended March 31,
(dollar amounts in millions)
 
 
2020
 
2019
Interest rate contracts:
 

 
 
 
 
Customer
 
Capital markets fees
 
$
18

 
$
10

Mortgage Banking
 
Mortgage banking income
 
96

 
12

Foreign exchange contracts
 
Capital markets fees
 
6

 
8

Commodities contracts
 
Capital markets fees
 
2

 
(6
)
Equity contracts
 
Other noninterest expense
 
(2
)
 
(1
)
Total
 
 
 
$
120

 
$
23


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, 2020 and December 31, 2019, identified by the underlying interest rate-sensitive instruments.
 
March 31, 2020
(dollar amounts in millions)
Fair Value Hedges
 
Cash Flow Hedges
 
Total
Instruments associated with:
 
 
 
 
 
Loans
$

 
$
19,375

 
$
19,375

Long-term debt
8,040

 

 
8,040

Total notional value at March 31, 2020
$
8,040

 
$
19,375

 
$
27,415

 
 
 
 
 
 
 
December 31, 2019
(dollar amounts in millions)
Fair Value Hedges
 
Cash Flow Hedges
 
Total
Instruments associated with:
 
 
 
 
 
Loans

 
18,375

 
18,375

Investment securities
$

 
$
12

 
$
12

Long-term debt
7,540

 

 
7,540

Total notional value at December 31, 2019
$
7,540

 
$
18,387

 
$
25,927


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 for the three-month periods ended March 31, 2020 and 2019.
 
Three Months Ended March 31, 2020
(dollar amounts in millions)
2020
 
2019
Interest rate contracts
 
 
 
Change in fair value of interest rate swaps hedging long-term debt (1)
$
200

 
$
41

Change in fair value of hedged long term debt (1)
(190
)
 
(41
)
(1)
Recognized in Interest expense—long-term debt in the Unaudited Condensed Consolidated Statements of Income.
Amounts recorded on the balance sheet related to cumulative basis adjustments
As of March 31, 2020, and December 31, 2019, the following amounts were recorded on the balance sheet related to cumulative basis adjustments for fair value hedges.
 
Carrying Amount of the Hedged Liabilities
 
Cumulative Amount of Fair Value Hedging Adjustment To Hedged Liabilities
(dollar amounts in millions)
March 31, 2020
 
December 31, 2019
 
March 31, 2020
 
December 31, 2019
Long-term debt
$
7,775

 
$
7,578

 
$
304

 
$
114

The cumulative amount of fair value hedging adjustments remaining for any hedged assets and liabilities for which hedge accounting has been discontinued was $(84) million and $(93) million at March 31, 2020 and December 31, 2019, respectively.
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 Condensed Consolidated Balance Sheets at March 31, 2020 and December 31, 2019.
Offsetting of Financial Assets and Derivative Assets
 
 
 
 
Gross amounts
offset in the unaudited
condensed
consolidated
balance sheets
 
Net amounts of
assets
presented in
the unaudited condensed
consolidated
balance sheets
 
Gross amounts not offset in the
unaudited condensed consolidated
balance sheets
 
 
(dollar amounts in millions)
 
Gross amounts
of recognized
assets
 
 
 
Financial
instruments
 
Cash collateral
received
 
Net amount
March 31, 2020
Derivatives
$
2,384

 
$
(1,302
)
 
$
1,082

 
$
(115
)
 
$
(62
)
 
$
905

December 31, 2019
Derivatives
856

 
(404
)
 
452

 
(65
)
 
(29
)
 
358


Offsetting of financial liabilities and derivative liabilities
Offsetting of Financial Liabilities and Derivative Liabilities
 
 
 
 
Gross amounts
offset in the unaudited
condensed
consolidated
balance sheets
 
Net amounts of
liabilities
presented in
the unaudited condensed
consolidated
balance sheets
 
Gross amounts not offset in the
unaudited condensed consolidated
balance sheets
 
 
(dollar amounts in millions)
 
Gross amounts
of recognized
liabilities
 
 
 
Financial
instruments
 
Cash collateral
delivered
 
Net amount
March 31, 2020
Derivatives
$
1,372

 
$
(1,066
)
 
$
306

 
$

 
$
(108
)
 
$
198

December 31, 2019
Derivatives
521

 
(417
)
 
104

 

 
(75
)
 
29