Quarterly report pursuant to Section 13 or 15(d)

FAIR VALUES OF ASSETS AND LIABILITIES (Tables)

v3.22.1
FAIR VALUES OF ASSETS AND LIABILITIES (Tables)
 3 Months Ended
Mar. 31, 2022
Fair Value Disclosures [Abstract]  
Assets and liabilities measured at fair value on a recurring basis
Assets and Liabilities measured at fair value on a recurring basis
Fair Value Measurements at Reporting Date Using Netting Adjustments (1) March 31, 2022
(dollar amounts in millions) Level 1 Level 2 Level 3
Assets
Trading account securities:
Municipal securities $ —  $ 74  $ —  $ —  $ 74 
Available-for-sale securities:
U.S. Treasury securities 5  —  —  —  5 
Residential CMOs —  2,916  —  —  2,916 
Residential MBS —  13,901  —  —  13,901 
Commercial MBS —  1,850  —  —  1,850 
Other agencies —  225  —  —  225 
Municipal securities —  47  3,282  —  3,329 
Private-label CMO —  126  19  —  145 
Asset-backed securities —  334  62  —  396 
Corporate debt —  2,381  —  —  2,381 
Other securities/sovereign debt —  4  —  —  4 
Total available-for-sale securities
 5  21,784  3,363  —  25,152 
Other securities 60  6  —  —  66 
Loans held for sale —  835  —  —  835 
Loans held for investment —  154  18  —  172 
MSRs —  —  416  —  416 
Other assets:
Derivative assets —  1,557  3  (859) 701 
Assets held in trust for deferred compensation plans 140  —  —  —  140 
Liabilities
Derivative liabilities —  1,216  13  (684) 545 
Fair Value Measurements at Reporting Date Using
Netting Adjustments (1)
 December 31, 2021
(dollar amounts in millions)
Level 1
Level 2
Level 3
Assets
Trading account securities:
Municipal securities $ —  $ 46  $ —  $ —  $ 46 
Available-for-sale securities:
U.S. Treasury securities 5  —  —  —  5 
Residential CMOs —  4,649  —  —  4,649 
Residential MBS —  15,508  —  —  15,508 
Commercial MBS —  1,865  —  —  1,865 
Other agencies —  248  —  —  248 
Municipal securities —  49  3,477  —  3,526 
Private-label CMO —  86  20  —  106 
Asset-backed securities —  312  70  —  382 
Corporate debt —  2,167  —  —  2,167 
Other securities/sovereign debt —  4  —  —  4 
Total available-for-sale securities 5  24,888  3,567  —  28,460 
Other securities 65  7  —  —  72 
Loans held for sale —  1,270  —  —  1,270 
Loans held for investment —  152  19  —  171 
MSRs —  —  351  —  351 
Other assets:
Derivative assets —  1,055  10  (465) 600 
Assets held in trust for deferred compensation plans 156  —  —  —  156 
Liabilities
Derivative liabilities —  737  6  (624) 119 
(1)Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions and cash collateral held or placed with the same counterparties.
Rollforward of financial instruments measured on a recurring basis and classified as Level 3
The following tables present a rollforward of the balance sheet amounts measured at fair value on a recurring basis and classified as Level 3. The classification of an item as Level 3 is based on the significance of the unobservable inputs to the overall fair value measurement. However, Level 3 measurements may also include observable components of value that can be validated externally. Accordingly, the gains and losses in the table below include changes in fair value due in part to observable factors that are part of the valuation methodology.
Level 3 Fair Value Measurements
Three Months Ended March 31, 2022
Available-for-sale securities Loans held for investment
(dollar amounts in millions) MSRs
Derivative
instruments
Municipal
securities
 Private-
label CMO
Asset-backed
securities
Three Months Ended March 31, 2022
Opening balance $ 351  $ 4  $ 3,477  $ 20  $ 70  $ 19 
Transfers out of Level 3 (1) —  (7) —  —  —  — 
Total gains/losses for the period:
Included in earnings:
Mortgage banking income 51  (7) —  —  —  — 
Interest and fee income —  —  (2) (1) —  — 
Provision for credit losses —  —  (4) —  —  — 
Included in OCI —  —  (120) —  (1) — 
Purchases/originations 29  —  172  —  —  — 
Sales —  —  —  —  —  — 
Repayments —  —  —  —  —  (1)
Settlements (15) —  (241) —  (7) — 
Closing balance $ 416  $ (10) $ 3,282  $ 19  $ 62  $ 18 
Change in unrealized gains or losses for the period included in earnings for assets held at end of the reporting date $ 51  $ (16) $ —  $ —  $ —  $ — 
Change in unrealized gains or losses for the period included in other comprehensive income for assets held at the end of the reporting period —  —  (118) —  (1) — 
Three Months Ended March 31, 2021
Opening balance 210  41  2,951  9  10  23 
Transfers out of Level 3 (1) —  (39) —  —  —  — 
Total gains/losses for the period:
Included in earnings:
Mortgage banking income 51  8  —  —  —  — 
Included in OCI —  —  (4) —  —  — 
Purchases/originations 33  —  209  2  37  — 
Repayments —  —  —  —  —  (1)
Settlements (20) —  (86) —  —  — 
Closing balance 274  10  3,070  11  47  22 
Change in unrealized gains or losses for the period included in earnings for assets held at end of the reporting date $ 51  $ (26) $ —  $ —  $ —  $ — 
Change in unrealized gains or losses for the period included in other comprehensive income for assets held at the end of the reporting period —  —  (5) —  —  — 
(1)Transfers out of Level 3 represent the settlement value of the derivative instruments (i.e. interest rate lock agreements) that are transferred to loans held for sale, which is classified as Level 2.
Assets and liabilities under the fair value option
The following tables present the fair value and aggregate principal balance of certain assets and liabilities under the fair value option:
(dollar amounts in millions) Total Loans Loans that are 90 or more days past due
Fair value
carrying
amount
Aggregate
unpaid
principal
 Difference
Fair value
carrying
amount
Aggregate
unpaid
principal
 Difference
March 31, 2022
Assets
Loans held for sale $ 835  $ 846  $ (11) $ —  $ —  $ — 
Loans held for investment 172  177  (5) 5  5  — 
December 31, 2021
Assets
Loans held for sale $ 1,270  $ 1,237  $ 33  $ —  $ —  $ — 
Loans held for investment 171  177  (6) 4  4  — 

The following table presents the net gains (losses) from fair value changes.
(dollar amounts in millions) Three Months Ended March 31,
Assets 2022 2021
Loans held for sale (1) $ (44) $ (34)
Loans held for investment 1  — 
(1)The net gains (losses) from fair value changes are included in Mortgage banking income on the Unaudited Condensed Consolidated Statements of Income.
Assets measured at fair value on a nonrecurring basis
The amounts measured at fair value on a nonrecurring basis were as follows:
Fair Value Measurements Using Significant Other Unobservable Inputs (Level 3) Total Gains (Losses)
Three Months Ended March 31,
(dollar amounts in millions) March 31, 2022 December 31, 2021 2022 2021
Collateral-dependent loans $ 17  $ 39  $ (1) $ (1)
Quantitative information about significant unobservable level 3 fair value measurement inputs
The table below presents quantitative information about the significant unobservable inputs for assets and liabilities measured at fair value on a recurring and nonrecurring basis:
Quantitative Information about Level 3 Fair Value Measurements
At March 31, 2022 (1) At December 31, 2021 (1)
(dollar amounts in millions) Valuation Technique Significant Unobservable Input Range Weighted Average Range Weighted Average
Measured at fair value on a recurring basis:
MSRs Discounted cash flow Constant prepayment rate 6  % - 26% 9  % 8  % —% 23  % 12  %
Spread over forward interest rate swap rates 4  % - 11% 5  % 3  % —% 11  % 5  %
Derivative assets Consensus Pricing Net market price (11) % - 6% (2) % (4) % —% 8  % 1  %
Estimated pull through % 10  % - 100% 91  % 6  % —% 100  % 92  %
Municipal securities Discounted cash flow Discount rate 1  % - 3% 3  % —  % —% 2  % 1  %
Asset-backed securities Cumulative default —  % - 64% 5  % —  % —% 64  % 5  %
Loss given default 5  % - 60% 24  % 5  % —% 80  % 23  %
(1)     Certain disclosures related to quantitative level 3 fair value measurements do not include those deemed to be immaterial.
Carrying amounts and estimated fair values of financial instruments
The following table provides the carrying amounts and estimated fair values of Huntington’s financial instruments:

(dollar amounts in millions) Amortized Cost Lower of Cost or Market
Fair Value or
Fair Value Option
 Total Carrying Amount Estimated Fair Value
March 31, 2022
Financial Assets
Cash and short-term assets $ 4,622  $ —  $ —  $ 4,622  $ 4,622 
Trading account securities —  —  74  74  74 
Available-for-sale securities —  —  25,152  25,152  25,152 
Held-to-maturity securities 17,190  —  —  17,190  16,413 
Other securities 990  —  66  1,056  1,056 
Loans held for sale —  235  835  1,070  1,069 
Net loans and leases (1) 110,627  —  172  110,799  109,138 
Derivative assets —  —  701  701  701 
Assets held in trust for deferred compensation plans —  —  140  140  140 
Financial Liabilities
Deposits 146,965  —  —  146,965  147,313 
Short-term borrowings 652  —  —  652  652 
Long-term debt 6,508  —  —  6,508  6,799 
Derivative liabilities —  —  545  545  545 
December 31, 2021
Financial Assets
Cash and short-term assets $ 5,914  $ —  $ —  $ 5,914  $ 5,914 
Trading account securities —  —  46  46  46 
Available-for-sale securities —  —  28,460  28,460  28,460 
Held-to-maturity securities 12,447  —  —  12,447  12,489 
Other securities 576  —  72  648  648 
Loans held for sale —  406  1,270  1,676  1,621 
Net loans and leases (1) 109,066  —  171  109,237  109,695 
Derivative assets —  —  600  600  600 
Assets held in trust for deferred compensation plans —  —  156  156  156 
Financial Liabilities
Deposits 143,263  —  —  143,263  143,574 
Short-term borrowings 334  —  —  334  334 
Long-term debt 7,108  —  —  7,108  7,319 
Derivative liabilities —  —  119  119  119 
(1)Includes collateral-dependent loans.
The following table presents the level in the fair value hierarchy for the estimated fair values at March 31, 2022 and December 31, 2021:
Estimated Fair Value Measurements at Reporting Date Using Netting Adjustments (1)  Presented Balance
(dollar amounts in millions) Level 1 Level 2 Level 3
March 31, 2022
Financial Assets
Trading account securities $ —  $ 74  $ —  $ 74 
Available-for-sale securities 5  21,784  3,363  25,152 
Held-to-maturity securities —  16,413  —  16,413 
Other securities (2) 60  6  —  66 
Loans held for sale —  835  234  1,069 
Net loans and leases —  154  108,984  109,138 
Derivative assets —  1,557  3  $ (859) 701 
Financial Liabilities
Deposits —  143,324  3,989  147,313 
Short-term borrowings —  652  —  652 
Long-term debt —  5,933  866  6,799 
Derivative liabilities —  1,216  13  (684) 545 
December 31, 2021
Financial Assets
Trading account securities $ —  $ 46  $ —  $ 46 
Available-for-sale securities 5  24,888  3,567  28,460 
Held-to-maturity securities —  12,489  —  12,489 
Other securities (2) 65  7  —  72 
Loans held for sale —  1,270  351  1,621 
Net loans and leases —  152  109,543  109,695 
Derivative assets —  1,055  10  $ (465) 600 
Financial Liabilities
Deposits —  139,047  4,527  143,574 
Short-term borrowings —  334  —  334 
Long-term debt —  6,441  878  7,319 
Derivative liabilities —  737  6  (624) 119 
(1)Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions and cash collateral held or placed with the same counterparties.
(2)Excludes securities without readily determinable fair values.