OTHER COMPREHENSIVE INCOME
The components of Huntington’s OCI for the three-month and six-month periods ended June 30, 2020 and 2019, were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2020 |
|
Tax (expense) |
(dollar amounts in millions) |
Pretax |
|
Benefit |
|
After-tax |
Unrealized gains (losses) on available-for-sale securities arising during the period |
$ |
57 |
|
|
$ |
(13 |
) |
|
$ |
44 |
|
Less: Reclassification adjustment for realized net losses (gains) included in net income |
23 |
|
|
(5 |
) |
|
18 |
|
Net change in unrealized holding gains (losses) on available-for-sale securities |
80 |
|
|
(18 |
) |
|
62 |
|
Net change in fair value on cash flow hedges |
14 |
|
|
(3 |
) |
|
11 |
|
Net change in pension and other post-retirement obligations (1) |
(12 |
) |
|
2 |
|
|
(10 |
) |
Total other comprehensive income (loss) |
$ |
82 |
|
|
$ |
(19 |
) |
|
$ |
63 |
|
(1) Includes a settlement gain recognized in other noninterest income on the Unaudited Condensed Consolidated Statements of Income.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2019 |
|
Tax (expense) |
(dollar amounts in millions) |
Pretax |
|
Benefit |
|
After-tax |
Unrealized gains (losses) on available-for-sale securities arising during the period |
$ |
163 |
|
|
$ |
(36 |
) |
|
$ |
127 |
|
Less: Reclassification adjustment for realized net losses (gains) included in net income |
9 |
|
|
(2 |
) |
|
7 |
|
Net change in unrealized gains (losses) on available-for-sale securities |
172 |
|
|
(38 |
) |
|
134 |
|
Net change in fair value on cash flow hedges |
60 |
|
|
(13 |
) |
|
47 |
|
Net change in pension and other post-retirement obligations |
1 |
|
|
— |
|
|
1 |
|
Total other comprehensive income (loss) |
$ |
233 |
|
|
$ |
(51 |
) |
|
$ |
182 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2020 |
|
Tax (expense) |
(dollar amounts in millions) |
Pretax |
|
Benefit |
|
After-tax |
Unrealized holding gains (losses) on available-for-sale securities arising during the period |
$ |
274 |
|
|
$ |
(61 |
) |
|
$ |
213 |
|
Less: Reclassification adjustment for realized net losses (gains) included in net income |
28 |
|
|
(6 |
) |
|
22 |
|
Net change in unrealized holding gains (losses) on available-for-sale securities |
302 |
|
|
(67 |
) |
|
235 |
|
Net change in fair value on cash flow hedges |
409 |
|
|
(90 |
) |
|
319 |
|
Net change in pension and other post-retirement obligations (1) |
(10 |
) |
|
2 |
|
|
(8 |
) |
Total other comprehensive income (loss) |
$ |
701 |
|
|
$ |
(155 |
) |
|
$ |
546 |
|
(1) Includes a settlement gain recognized in other noninterest income on the Unaudited Condensed Consolidated Statements of Income.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2019 |
|
Tax (expense) |
(dollar amounts in millions) |
Pretax |
|
Benefit |
|
After-tax |
Unrealized holding gains (losses) on available-for-sale securities arising during the period |
$ |
347 |
|
|
$ |
(77 |
) |
|
$ |
270 |
|
Less: Reclassification adjustment for realized net losses (gains) included in net income |
13 |
|
|
(3 |
) |
|
10 |
|
Net change in unrealized holding gains (losses) on available-for-sale securities |
360 |
|
|
(80 |
) |
|
280 |
|
Net change in fair value on cash flow hedges |
68 |
|
|
(14 |
) |
|
54 |
|
Net change in pension and other post-retirement obligations |
2 |
|
|
— |
|
|
2 |
|
Total other comprehensive income (loss) |
$ |
430 |
|
|
$ |
(94 |
) |
|
$ |
336 |
|
Activity in accumulated OCI for the three-month and six-month periods ended June 30, 2020 and 2019, 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 (2)
|
|
Total |
Three Months Ended June 30, 2020 |
|
|
|
|
|
|
|
Balance, beginning of period |
$ |
145 |
|
|
$ |
331 |
|
|
$ |
(249 |
) |
|
$ |
227 |
|
Other comprehensive income before reclassifications |
44 |
|
|
11 |
|
|
— |
|
|
55 |
|
Amounts reclassified from accumulated OCI to earnings |
18 |
|
|
— |
|
|
(10 |
) |
|
8 |
|
Period change |
62 |
|
|
11 |
|
|
(10 |
) |
|
63 |
|
Balance, end of period |
$ |
207 |
|
|
$ |
342 |
|
|
$ |
(259 |
) |
|
$ |
290 |
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2019 |
|
|
|
|
|
|
|
Balance, beginning of period |
$ |
(217 |
) |
|
$ |
7 |
|
|
$ |
(245 |
) |
|
$ |
(455 |
) |
Other comprehensive income before reclassifications |
127 |
|
|
47 |
|
|
— |
|
|
174 |
|
Amounts reclassified from accumulated OCI to earnings |
7 |
|
|
— |
|
|
1 |
|
|
8 |
|
Period change |
134 |
|
|
47 |
|
|
1 |
|
|
182 |
|
Balance, end of period |
$ |
(83 |
) |
|
$ |
54 |
|
|
$ |
(244 |
) |
|
$ |
(273 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 (2)
|
|
Total |
Six Months Ended June 30, 2020 |
|
|
|
|
|
|
|
Balance, beginning of period |
$ |
(28 |
) |
|
$ |
23 |
|
|
$ |
(251 |
) |
|
$ |
(256 |
) |
Other comprehensive income before reclassifications |
213 |
|
|
319 |
|
|
— |
|
|
532 |
|
Amounts reclassified from accumulated OCI to earnings |
22 |
|
|
— |
|
|
(8 |
) |
|
14 |
|
Period change |
235 |
|
|
319 |
|
|
(8 |
) |
|
546 |
|
Balance, end of period |
$ |
207 |
|
|
$ |
342 |
|
|
$ |
(259 |
) |
|
$ |
290 |
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2019 |
|
|
|
|
|
|
|
Balance, beginning of period |
$ |
(363 |
) |
|
$ |
— |
|
|
$ |
(246 |
) |
|
$ |
(609 |
) |
Other comprehensive income before reclassifications |
270 |
|
|
54 |
|
|
— |
|
|
324 |
|
Amounts reclassified from accumulated OCI to earnings |
10 |
|
|
— |
|
|
2 |
|
|
12 |
|
Period change |
280 |
|
|
54 |
|
|
2 |
|
|
336 |
|
Balance, end of period |
$ |
(83 |
) |
|
$ |
54 |
|
|
$ |
(244 |
) |
|
$ |
(273 |
) |
|
|
(1) |
AOCI amounts at June 30, 2020, March 31, 2020 and June 30, 2019 include $81 million, $87 million and $131 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.
|
(2)
Amounts for the three months and six months ended June 30, 2020 include a settlement gain recognized in other noninterest income on the Unaudited Condensed Consolidated Statements of Income.
|