Quarterly report pursuant to Section 13 or 15(d)

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

v3.22.1
DERIVATIVE FINANCIAL INSTRUMENTS (Tables)
 3 Months Ended
Mar. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Asset and liability derivatives included in accrued income and other assets
The following table presents the fair values and notional values of all derivative instruments included in the Unaudited Condensed Consolidated Balance Sheets at March 31, 2022 and December 31, 2021. Amounts in the table below are presented gross without the impact of any net collateral arrangements.
March 31, 2022 December 31, 2021
(dollar amounts in millions) Notional Value Asset Liability Notional Value Asset Liability
Derivatives designated as Hedging Instruments
Interest rate contracts $ 25,686  $ 574  $ 309  $ 21,306  $ 258  $ 32 
Foreign exchange contracts 205  5  —  210  1  — 
Derivatives not designated as Hedging Instruments
Interest rate contracts 43,554  598  538  45,286  587  498 
Foreign exchange contracts 3,661  40  43  3,524  29  31 
Commodities contracts 978  335  336  1,077  178  177 
Equity contracts 685  8  3  685  12  5 
Total Contracts $ 74,769  $ 1,560  $ 1,229  $ 72,088  $ 1,065  $ 743 
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, 2022 and 2021, 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) 2022 2021
Interest rate contracts:
Customer Capital markets fees $ 10  $ 12 
Mortgage banking Mortgage banking income (47) (6)
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 10  6 
Commodities contracts Capital markets fees 1  — 
Equity contracts Other noninterest expense 1  (7)
Total $ (25) $ 147 
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, 2022 and December 31, 2021, identified by the underlying interest rate-sensitive instruments.
March 31, 2022
(dollar amounts in millions) Fair Value Hedges Cash Flow Hedges Economic Hedges Total
Instruments associated with:
Investment securities $ 9,481  $ —  $ —  $ 9,481 
Loans —  12,925  271  13,196 
Long-term debt 3,280  —  —  3,280 
Total notional value at March 31, 2022 $ 12,761  $ 12,925  $ 271  $ 25,957 
December 31, 2021
(dollar amounts in millions) Fair Value Hedges Cash Flow Hedges Economic Hedges Total
Instruments associated with:
Investment securities $ 8,228  $ —  $ —  $ 8,228 
Loans —  11,150  271  11,421 
Long-term debt 1,928  —  —  1,928 
Total notional value at December 31, 2021 $ 10,156  $ 11,150  $ 271  $ 21,577 
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, 2022 and 2021.
Three Months Ended
March 31,
(dollar amounts in millions) 2022 2021
Interest rate contracts
Change in fair value of interest rate swaps hedging investment securities (1) $ 418  $ 43 
Change in fair value of hedged investment securities (1) (430) (44)
Change in fair value of interest rate swaps hedging long-term debt (2) (98) (50)
Change in fair value of hedged long term debt (2) 98  52 
(1)Recognized in Interest income—available-for-sale securities—taxable in the Unaudited Condensed Consolidated Statements of Income
(2)Recognized in Interest expense—long-term debt in the Unaudited Condensed Consolidated Statements of Income.
Amounts recorded on the balance sheet related to cumulative basis adjustments
As of March 31, 2022, and December 31, 2021, 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, 2022 December 31, 2021 March 31, 2022 December 31, 2021
Assets
Investment securities (1) $ 18,364  $ 17,150  $ (547) $ (117)
Liabilities
Long-term debt (2) 3,237  1,981  (54) 45 
(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, 2022, the amortized cost basis of the closed portfolios used in these hedging relationships was $16.5 billion, the cumulative basis adjustments associated with these hedging relationships was $478 million, and the amounts of the designated hedging instruments were $8.6 billion.
(2)Excluded from the above table are the cumulative amount of fair value hedge adjustments remaining for long-term debt for which hedge accounting has been discontinued in the amounts of $12 million at March 31, 2022 and $17 million at December 31, 2021.
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, 2022 and December 31, 2021.

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, 2022 $ 1,560  $ (859) $ 701  $ (59) $ (149) $ 493 
December 31, 2021 1,065  (465) 600  (65) (31) 504 
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,
2022		 December 31,
2021
Notional value $ 1,050  $ 1,330 
Trading assets —  19 
Trading liabilities (24) — 

Three Months Ended
March 31, 2022
(dollar amounts in millions) 2022 2021
Trading gains $ (47) $ (46)
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, 2022 $ 1,229  $ (684) $ 545  $ (82) $ (17) $ 446 
December 31, 2021 743  (624) 119  (3) (116) —