| OTHER COMPREHENSIVE INCOME The components of Huntington’s OCI for the three-month and nine-month periods ended September 30, 2021 and 2020, were as follows:
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Three Months Ended
September 30, 2021 |
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Tax (expense) |
| (dollar amounts in millions) |
Pretax |
|
benefit |
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After-tax |
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| Unrealized gains (losses) on available-for-sale securities arising during the period |
$ |
(112) |
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$ |
26 |
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$ |
(86) |
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| Less: Reclassification adjustment for realized net losses (gains) included in net income |
5 |
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(1) |
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4 |
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| Net change in unrealized holding gains (losses) on available-for-sale securities |
(107) |
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25 |
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(82) |
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|
| Net change in fair value on cash flow hedges |
(43) |
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14 |
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|
(29) |
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| Foreign currency translation adjustment (1) |
(7) |
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— |
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(7) |
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| Net unrealized gains (losses) on net investment hedges |
9 |
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— |
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9 |
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| Translation adjustments, net of hedges (1) |
2 |
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— |
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2 |
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| Net change in pension and other post-retirement obligations |
3 |
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— |
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3 |
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| Total other comprehensive income |
$ |
(145) |
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$ |
39 |
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$ |
(106) |
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Three Months Ended
September 30, 2020 |
|
Tax (expense) |
| (dollar amounts in millions) |
Pretax |
|
benefit |
|
After-tax |
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| Unrealized gains (losses) on available-for-sale securities arising during the period |
$ |
— |
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$ |
— |
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$ |
— |
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| Less: Reclassification adjustment for realized net losses (gains) included in net income |
6 |
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(1) |
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5 |
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| Net change in unrealized gains (losses) on available-for-sale securities |
6 |
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(1) |
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5 |
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| Net change in fair value on cash flow hedges |
(52) |
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12 |
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(40) |
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| Net change in pension and other post-retirement obligations |
3 |
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(1) |
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2 |
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| Total other comprehensive income |
$ |
(43) |
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$ |
10 |
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$ |
(33) |
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Nine Months Ended
September 30, 2021 |
|
Tax (expense) |
| (dollar amounts in millions) |
Pretax |
|
benefit |
|
After-tax |
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| Unrealized gains (losses) on available-for-sale securities arising during the period |
$ |
(311) |
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$ |
70 |
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$ |
(241) |
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| Less: Reclassification adjustment for realized net losses (gains) included in net income |
27 |
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|
(6) |
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21 |
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| Net change in unrealized holding gains (losses) on available-for-sale securities |
(284) |
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|
64 |
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|
(220) |
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|
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| Net change in fair value on cash flow hedges |
(135) |
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|
33 |
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|
(102) |
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| Foreign currency translation adjustment (1) |
(13) |
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— |
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(13) |
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| Net unrealized gains (losses) on net investment hedges |
9 |
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— |
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|
9 |
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| Translation adjustments, net of hedges (1) |
(4) |
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— |
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(4) |
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| Net change in pension and other post-retirement obligations |
12 |
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(3) |
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9 |
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| Total other comprehensive loss |
$ |
(411) |
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$ |
94 |
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$ |
(317) |
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Nine Months Ended
September 30, 2020 |
|
Tax (expense) |
| (dollar amounts in millions) |
Pretax |
|
benefit |
|
After-tax |
|
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| Unrealized gains (losses) on available-for-sale securities arising during the period |
$ |
274 |
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|
$ |
(61) |
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$ |
213 |
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| Less: Reclassification adjustment for realized net losses (gains) included in net income |
35 |
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|
(8) |
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27 |
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| Net change in unrealized holding gains (losses) on available-for-sale securities |
309 |
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|
(69) |
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|
240 |
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| Net change in fair value on cash flow hedges |
358 |
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(79) |
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|
279 |
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| Net change in pension and other post-retirement obligations (2) |
(8) |
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2 |
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|
(6) |
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| Total other comprehensive income |
$ |
659 |
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$ |
(146) |
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$ |
513 |
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(1)Foreign investments are deemed to be permanent in nature and, therefore, Huntington does not provide for taxes on foreign currency translation adjustments.
(2)Includes a settlement gain recognized in other noninterest income on the Unaudited Condensed Consolidated Statements of Income.
Activity in accumulated OCI for the three-month and nine-month periods ended September 30, 2021 and 2020, 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 |
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Translation adjustments, net of hedges |
|
Unrealized
gains
(losses) for
pension and
other post-
retirement
obligations (2)
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Total |
| Three Months Ended September 30, 2021 |
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| Balance, beginning of period |
$ |
50 |
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$ |
184 |
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$ |
(6) |
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$ |
(247) |
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$ |
(19) |
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| Other comprehensive income (loss) before reclassifications |
(86) |
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(29) |
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2 |
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— |
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(113) |
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| Amounts reclassified from accumulated OCI to earnings |
4 |
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— |
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— |
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3 |
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7 |
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| Period change |
(82) |
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(29) |
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2 |
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|
3 |
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(106) |
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| Balance, end of period |
$ |
(32) |
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$ |
155 |
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$ |
(4) |
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$ |
(244) |
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$ |
(125) |
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| Three Months Ended September 30, 2020 |
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| Balance, beginning of period |
$ |
207 |
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$ |
342 |
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$ |
— |
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|
$ |
(259) |
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$ |
290 |
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| Other comprehensive income before reclassifications |
— |
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|
(40) |
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— |
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— |
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|
(40) |
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| Amounts reclassified from accumulated OCI to earnings |
5 |
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— |
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— |
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2 |
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|
7 |
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| Period change |
5 |
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(40) |
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— |
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2 |
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(33) |
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| Balance, end of period |
$ |
212 |
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$ |
302 |
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$ |
— |
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$ |
(257) |
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$ |
257 |
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|
| (dollar amounts in millions) |
Unrealized
gains (losses) on
debt securities (1)
|
|
Change in fair value related to cash flow hedges |
|
|
|
|
|
Translation adjustments, net of hedges |
|
Unrealized
gains
(losses) for
pension and
other post-
retirement
obligations (2)
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Total |
| Nine Months Ended September 30, 2021 |
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| Balance, beginning of period |
$ |
188 |
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$ |
257 |
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$ |
— |
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$ |
(253) |
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$ |
192 |
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| Other comprehensive loss before reclassifications |
(241) |
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|
(102) |
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|
(4) |
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|
— |
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|
(347) |
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| Amounts reclassified from accumulated OCI to earnings |
21 |
|
|
— |
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|
— |
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|
9 |
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|
30 |
|
| Period change |
(220) |
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|
(102) |
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|
(4) |
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9 |
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|
(317) |
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| Balance, end of period |
$ |
(32) |
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$ |
155 |
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|
$ |
(4) |
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$ |
(244) |
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$ |
(125) |
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| Nine Months Ended September 30, 2020 |
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| Balance, beginning of period |
$ |
(28) |
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$ |
23 |
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|
$ |
— |
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|
$ |
(251) |
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|
$ |
(256) |
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| Other comprehensive income before reclassifications |
213 |
|
|
279 |
|
|
|
|
|
|
— |
|
|
— |
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|
492 |
|
| Amounts reclassified from accumulated OCI to earnings |
27 |
|
|
— |
|
|
|
|
|
|
— |
|
|
(6) |
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|
21 |
|
| Period change |
240 |
|
|
279 |
|
|
|
|
|
|
— |
|
|
(6) |
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|
513 |
|
| Balance, end of period |
$ |
212 |
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|
$ |
302 |
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|
|
|
|
$ |
— |
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|
$ |
(257) |
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$ |
257 |
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(1)AOCI amounts at September 30, 2021 and September 30, 2020 include $41 million and $74 million, respectively, of net 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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