DERIVATIVE FINANCIAL INSTRUMENTS (Tables)
|
3 Months Ended |
Mar. 31, 2021 |
|---|
| Derivative Instruments and Hedging Activities Disclosure [Abstract] |
|
| Asset and liability derivatives included in accrued income and other assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2021 |
|
December 31, 2020 |
| (dollar amounts in millions) |
Notional Value |
|
Asset |
|
Liability |
|
Notional Value |
|
Asset |
|
Liability |
| Derivatives designated as Hedging Instruments |
|
|
|
|
|
|
|
|
|
|
|
| Interest rate contracts |
$ |
24,937 |
|
|
$ |
638 |
|
|
$ |
42 |
|
|
$ |
27,056 |
|
|
$ |
719 |
|
|
$ |
51 |
|
| Derivatives not designated as Hedging Instruments |
|
|
|
|
|
|
|
|
|
|
|
| Interest rate contracts |
55,792 |
|
|
1,034 |
|
|
686 |
|
|
44,495 |
|
|
1,074 |
|
|
828 |
|
| Foreign exchange contracts |
2,737 |
|
|
44 |
|
|
42 |
|
|
2,718 |
|
|
46 |
|
|
47 |
|
| Commodities contracts |
1,660 |
|
|
101 |
|
|
98 |
|
|
1,952 |
|
|
107 |
|
|
103 |
|
| Equity contracts |
502 |
|
|
12 |
|
|
6 |
|
|
517 |
|
|
— |
|
|
4 |
|
| Total Contracts |
$ |
85,628 |
|
|
$ |
1,829 |
|
|
$ |
874 |
|
|
$ |
76,738 |
|
|
$ |
1,946 |
|
|
$ |
1,033 |
|
|
| 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, 2021 and 2020, 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) |
|
|
2021 |
|
2020 |
|
|
|
|
| Interest rate contracts: |
|
|
|
|
|
|
|
|
|
|
| Customer |
|
Capital markets fees |
|
$ |
12 |
|
|
$ |
18 |
|
|
|
|
|
| Mortgage Banking |
|
Mortgage banking income |
|
(6) |
|
|
96 |
|
|
|
|
|
| Interest rate floors |
|
Interest and fee income on loans and leases |
|
(2) |
|
|
— |
|
|
|
|
|
| Interest rate caps |
|
Interest expense on long-term debt |
|
144 |
|
|
— |
|
|
|
|
|
| Foreign exchange contracts |
|
Capital markets fees |
|
6 |
|
|
6 |
|
|
|
|
|
| Commodities contracts |
|
Capital markets fees |
|
— |
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Equity contracts |
|
Other noninterest expense |
|
(7) |
|
|
(2) |
|
|
|
|
|
| Total |
|
|
|
$ |
147 |
|
|
$ |
120 |
|
|
|
|
|
|
| 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, 2021 and December 31, 2020, identified by the underlying interest rate-sensitive instruments.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2021 |
| (dollar amounts in millions) |
Fair Value Hedges |
|
Cash Flow Hedges |
|
Economic Hedges |
|
Total |
| Instruments associated with: |
|
|
|
|
|
|
|
| Investment securities |
$ |
3,190 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
3,190 |
|
| Loans |
— |
|
|
16,350 |
|
|
1,271 |
|
|
17,621 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Long-term debt |
5,397 |
|
|
— |
|
|
8,000 |
|
|
13,397 |
|
|
|
|
|
|
|
|
|
| Total notional value at March 31, 2021 |
$ |
8,587 |
|
|
$ |
16,350 |
|
|
$ |
9,271 |
|
|
$ |
34,208 |
|
|
|
|
|
|
|
|
|
|
December 31, 2020 |
| (dollar amounts in millions) |
Fair Value Hedges |
|
Cash Flow Hedges |
|
Economic Hedges |
|
Total |
| Instruments associated with: |
|
|
|
|
|
|
|
| Investment securities |
$ |
3,484 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
3,484 |
|
| Loans |
— |
|
|
17,375 |
|
|
1,271 |
|
|
18,646 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Long-term debt |
6,197 |
|
|
— |
|
|
5,000 |
|
|
11,197 |
|
| Total notional value at December 31, 2020 |
$ |
9,681 |
|
|
$ |
17,375 |
|
|
$ |
6,271 |
|
|
$ |
33,327 |
|
|
| 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, 2021 and 2020.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, |
|
|
| (dollar amounts in millions) |
|
2021 |
|
2020 |
|
|
|
|
| Interest rate contracts |
|
|
|
|
|
|
|
|
| Change in fair value of interest rate swaps hedging investment securities (1) |
|
$ |
43 |
|
|
$ |
— |
|
|
|
|
|
| Change in fair value of hedged investment securities (1) |
|
(44) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Change in fair value of interest rate swaps hedging long-term debt (2) |
|
(50) |
|
|
200 |
|
|
|
|
|
| Change in fair value of hedged long term debt (2) |
|
52 |
|
|
(190) |
|
|
|
|
|
|
| Amounts recorded on the balance sheet related to cumulative basis adjustments |
As of March 31, 2021, and December 31, 2020, the following amounts were recorded on the balance sheet related to cumulative basis adjustments for fair value hedges.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortized Cost |
|
Cumulative Amount of Fair Value Hedging Adjustment To Hedged Items |
| (dollar amounts in millions) |
March 31, 2021 |
|
December 31, 2020 |
|
March 31, 2021 |
|
December 31, 2020 |
| Assets |
|
|
|
|
|
|
|
| Investment securities (1) |
$ |
5,713 |
|
|
$ |
6,637 |
|
|
$ |
1 |
|
|
$ |
3 |
|
|
|
|
|
|
|
|
|
| Liabilities |
|
|
|
|
|
|
|
| Long-term debt |
5,538 |
|
|
6,383 |
|
|
180 |
|
|
232 |
|
|
|
|
|
|
|
|
|
(1)Amounts include the amortized cost basis of closed portfolios used to designate hedging relationships in which the hedged item is the last layer expected to be remaining at the end of the hedging relationship. As of March 31, 2021, the amortized cost basis of the closed portfolios used in these hedging relationships was $5.3 billion, the cumulative basis adjustments associated with these hedging relationships was $1 million, and the amounts of the designated hedged items were $2.8 billion.
|
| 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, 2021 and December 31, 2020.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 2021 |
|
$ |
1,829 |
|
|
$ |
(816) |
|
|
$ |
1,013 |
|
|
$ |
(82) |
|
|
$ |
(190) |
|
|
$ |
741 |
|
| December 31, 2020 |
|
1,946 |
|
|
(889) |
|
|
1,057 |
|
|
(112) |
|
|
(142) |
|
|
803 |
|
|
| MSR Derivative Hedging |
The notional value of the derivative financial instruments, the corresponding net asset (liability) position recognized in other assets and/or other liabilities, and net trading gains (losses) related to MSR hedging activity is summarized in the following table:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (dollar amounts in millions) |
March 31,
2021 |
December 31,
2020 |
| Notional value |
$ |
875 |
|
|
$ |
1,170 |
|
| Trading assets |
9 |
|
|
43 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2021 |
|
|
| (dollar amounts in millions) |
2021 |
|
2020 |
|
|
|
| Trading gains |
$ |
(46) |
|
|
$ |
57 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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, 2021 |
|
$ |
874 |
|
|
$ |
(703) |
|
|
$ |
171 |
|
|
$ |
(17) |
|
|
$ |
(173) |
|
|
$ |
(19) |
|
| December 31, 2020 |
|
1,033 |
|
|
(917) |
|
|
116 |
|
|
(9) |
|
|
(105) |
|
|
2 |
|
|