| OTHER COMPREHENSIVE INCOME |
OTHER COMPREHENSIVE INCOME The components of Huntington’s OCI for the three-month and six-month periods ended June 30, 2022 and 2021, were as follows:
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| (dollar amounts in millions) |
Pretax |
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Tax (Expense) benefit |
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After-tax |
| Three Months Ended June 30, 2022 |
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| Unrealized losses on available-for-sale securities arising during the period |
$ |
(1,147) |
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|
$ |
264 |
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|
$ |
(883) |
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| Reclassification adjustment for realized net losses included in net income |
82 |
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|
(19) |
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|
63 |
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| Total unrealized losses on available-for-sale securities |
(1,065) |
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|
245 |
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|
(820) |
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| Net impact of fair value hedges on available-for-sale securities |
161 |
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(38) |
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123 |
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|
|
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| Change in fair value related to cash flow hedges |
(111) |
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|
25 |
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|
(86) |
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| Foreign currency translation adjustment (1) |
(8) |
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— |
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|
(8) |
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| Net unrealized gains (losses) on net investment hedges |
6 |
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— |
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|
6 |
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| Translation adjustments, net of hedges (1) |
(2) |
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— |
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(2) |
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| Change in accumulated unrealized gains for pension and other post retirement obligations |
2 |
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(1) |
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|
1 |
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| Other comprehensive loss |
$ |
(1,015) |
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$ |
231 |
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$ |
(784) |
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| Three Months Ended June 30, 2021 |
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| Unrealized gains on available-for-sale securities arising during the period |
$ |
88 |
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|
$ |
(20) |
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$ |
68 |
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| Reclassification adjustment for realized net losses included in net income |
13 |
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(3) |
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|
10 |
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| Total unrealized losses on available-for-sale securities |
101 |
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(23) |
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78 |
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| Net impact of fair value hedges on available-for-sale securities |
(6) |
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1 |
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(5) |
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| Change in fair value related to cash flow hedges |
(42) |
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8 |
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(34) |
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| Translation adjustments, net of hedges (1) |
(6) |
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— |
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|
(6) |
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| Change in accumulated unrealized gains for pension and other post retirement obligations |
3 |
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|
1 |
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4 |
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| Other comprehensive income |
$ |
50 |
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$ |
(13) |
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$ |
37 |
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| Six Months Ended June 30, 2022 |
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| Unrealized losses on available-for-sale securities arising during the period |
$ |
(2,687) |
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$ |
618 |
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$ |
(2,069) |
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| Reclassification adjustment for realized net losses (gains) included in net income |
91 |
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(21) |
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70 |
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| Total unrealized gains (losses) on available-for-sale securities |
(2,596) |
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|
597 |
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(1,999) |
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| Net impact of fair value hedges on available-for-sale securities |
592 |
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|
(137) |
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|
455 |
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| Change in fair value related to cash flow hedges |
(421) |
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|
95 |
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|
(326) |
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| Foreign currency translation adjustment (1) |
(6) |
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— |
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|
(6) |
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| Net unrealized gains (losses) on net investment hedges |
4 |
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|
— |
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|
4 |
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| Translation adjustments, net of hedges (1) |
(2) |
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|
— |
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|
(2) |
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| Change in accumulated unrealized gains for pension and other post retirement obligations |
5 |
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|
(2) |
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|
3 |
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| Other comprehensive loss |
$ |
(2,422) |
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$ |
553 |
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$ |
(1,869) |
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| Six Months Ended June 30, 2021 |
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| Unrealized losses on available-for-sale securities arising during the period |
$ |
(199) |
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$ |
44 |
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$ |
(155) |
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| Reclassification adjustment for realized net losses (gains) included in net income |
22 |
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(5) |
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17 |
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| Total unrealized losses on available-for-sale securities |
(177) |
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39 |
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(138) |
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| Net impact of fair value hedges on available-for-sale securities |
38 |
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(9) |
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29 |
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| Change in fair value related to cash flow hedges |
(130) |
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28 |
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(102) |
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| Translation adjustments, net of hedges (1) |
(6) |
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— |
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|
(6) |
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| Change in accumulated unrealized gains for pension and other post retirement obligations |
6 |
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— |
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|
6 |
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| Other comprehensive loss |
$ |
(269) |
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$ |
58 |
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$ |
(211) |
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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.
Activity in accumulated OCI for the three-month and six-month periods ended June 30, 2022 and 2021, were as follows:
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| (dollar amounts in millions) |
Unrealized
gains (losses) on
available-for-sale securities (1)
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Net impact of fair value hedges on available-for-sale securities |
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Change in fair value related to cash flow hedges |
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Translation adjustments, net of hedges |
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Unrealized
gains
(losses) for
pension and
other post-
retirement
obligations (2)
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Total |
| Three Months Ended June 30, 2022 |
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| Balance, beginning of period |
$ |
(1,332) |
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$ |
421 |
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$ |
(177) |
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$ |
(3) |
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$ |
(223) |
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$ |
(1,314) |
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| Other comprehensive income (loss) before reclassifications |
(883) |
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123 |
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(86) |
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(2) |
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— |
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|
(848) |
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| Amounts reclassified from accumulated OCI to earnings |
63 |
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— |
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— |
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— |
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1 |
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|
64 |
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| Period change |
(820) |
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|
123 |
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(86) |
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(2) |
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|
1 |
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(784) |
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| Balance, end of period |
$ |
(2,152) |
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$ |
544 |
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$ |
(263) |
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$ |
(5) |
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$ |
(222) |
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$ |
(2,098) |
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| Three Months Ended June 30, 2021 |
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| Balance, beginning of period |
$ |
(28) |
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$ |
36 |
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$ |
187 |
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|
$ |
— |
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|
$ |
(251) |
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|
$ |
(56) |
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| Other comprehensive income (loss) before reclassifications |
68 |
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|
(5) |
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|
(34) |
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(6) |
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— |
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|
23 |
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| Amounts reclassified from accumulated OCI to earnings |
10 |
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— |
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— |
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— |
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|
4 |
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|
14 |
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| Period change |
78 |
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(5) |
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(34) |
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(6) |
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4 |
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37 |
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| Balance, end of period |
$ |
50 |
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$ |
31 |
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$ |
153 |
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$ |
(6) |
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$ |
(247) |
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$ |
(19) |
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| Six Months Ended June 30, 2022 |
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| Balance, beginning of period |
$ |
(153) |
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$ |
89 |
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$ |
63 |
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$ |
(3) |
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$ |
(225) |
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$ |
(229) |
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| Other comprehensive loss before reclassifications |
(2,069) |
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|
455 |
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(326) |
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|
(2) |
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|
— |
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|
(1,942) |
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| Amounts reclassified from accumulated OCI to earnings |
70 |
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|
— |
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|
— |
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|
— |
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|
3 |
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|
73 |
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| Period change |
(1,999) |
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|
455 |
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|
(326) |
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|
(2) |
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|
3 |
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(1,869) |
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| Balance, end of period |
$ |
(2,152) |
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|
$ |
544 |
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|
$ |
(263) |
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|
$ |
— |
|
$ |
(5) |
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$ |
— |
|
$ |
(222) |
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$ |
(2,098) |
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| Six Months Ended June 30, 2021 |
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| Balance, beginning of period |
$ |
188 |
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|
$ |
2 |
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|
$ |
255 |
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|
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|
$ |
— |
|
|
$ |
(253) |
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|
$ |
192 |
|
| Other comprehensive income before reclassifications |
(155) |
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|
29 |
|
|
(102) |
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|
|
|
|
|
(6) |
|
|
— |
|
|
(234) |
|
| Amounts reclassified from accumulated OCI to earnings |
17 |
|
|
— |
|
|
— |
|
|
|
|
|
|
— |
|
|
6 |
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|
23 |
|
| Period change |
(138) |
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|
29 |
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|
(102) |
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|
|
(6) |
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|
6 |
|
|
(211) |
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| Balance, end of period |
$ |
50 |
|
|
$ |
31 |
|
$ |
— |
|
$ |
153 |
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|
|
|
|
$ |
— |
|
$ |
(6) |
|
$ |
— |
|
$ |
(247) |
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|
$ |
(19) |
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(1)AOCI amounts at June 30, 2022 and June 30, 2021 include $73 million and $48 million, respectively, of net unrealized losses (after-tax) 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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