Quarterly report pursuant to Section 13 or 15(d)

ACCOUNTING STANDARDS UPDATE

v3.22.1
ACCOUNTING STANDARDS UPDATE
 3 Months Ended
Mar. 31, 2022
Accounting Standards Update and Change in Accounting Principle [Abstract]  
ACCOUNTING STANDARDS UPDATE ACCOUNTING STANDARDS UPDATE
Accounting standards yet to be adopted
Standard Summary of guidance Effects on financial statements
ASU 2021-08-Business Combinations (Topic 805) Issued October 2021
•The amendments in this update require that an acquirer apply topic 606 to the recognition and measurement of revenue contract assets and liabilities acquired in a business combination.

•Effective for fiscal years ending after December 15, 2022, including interim periods within those fiscal years.
•Adoption of the ASU will be applied prospectively to all business combinations occurring after the adoption date, with early adoption permitted. An entity that elects to early adopt in an interim period should retroactively adjust for any business combination that occurred during the annual period of adoption, this includes the interim period.
•The update is not expected to have a material impact on Huntington’s Consolidated financial statements.
ASU 2022-01-Derivatives and Hedging (Topic 815): Fair Value Hedging - Portfolio Layer Method Issued March 2022
•The amendments in this update expands the current last-of-layer method to allow for multiple hedged layers in a single closed portfolio. To reflect the expansion, the last-of-layer method has been renamed the portfolio layer method. The standard also expands the scope of the portfolio layer method to include nonprepayable financial assets.
•Effective for fiscal years ending after December 15, 2022, including interim periods within those years. Adoption of the ASU will be applied on a modified retrospective basis by means of a cumulative-effect adjustment to the opening balance of retained earning on the initial application date, except for the amendments related to disclosures. Disclosure amendments may be applied either prospectively from the initial adoption date or on a retrospective basis. Early adoption is permitted on any date after the issuance of the standard, if adopted in an interim period the effects of adopting amendments related to basis adjustments should be reflected at the beginning of the fiscal year of adoption.
•The ASU also gives entities the options to reclassify debt securities classified in the held-to-maturity category at the date of adoption to the available-for-sale category if the entity applies the portfolio layer method hedging to one or more closed portfolios that include those debt securities.
•Huntington is currently evaluating the impact of the ASU on its Consolidated financial statements based on which transactions Huntington may apply the portfolio layer method.
ASU 2022-02- Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures Issued March 2022
•The amendments in this update eliminates TDR accounting for entities that have adopted Update 2016-13, while enhancing disclosure requirements for certain loan modifications when a borrower is experiencing financial difficulty. The ASU also requires current period gross write-offs by year of origination for financing receivables and net investment in leases.
•Effective for fiscal years ending after December 15, 2022, including interim periods within those fiscal years.
•Adoption of the ASU will be applied prospectively, except for the portion of the standard related to the recognition and measurement of TDRs an entity may elect to use a modified retrospective transition method with a cumulative effect adjustment to retained earnings at the beginning of the period of adoption. An entity that elects to early adopt in an interim period should apply the guidance as of the beginning of the fiscal year that includes the interim period. An entity may also chose to early adopt the amendments about TDRs and related disclosure enhancements separately from amendments about vintage disclosures.
•Huntington is currently evaluating the impact of the ASU on its Consolidated financial statements, as well as which adoption method to apply.