| INVESTMENT SECURITIES AND OTHER SECURITIES |
INVESTMENT SECURITIES AND OTHER SECURITIES Debt securities purchased in which Huntington has the intent and ability to hold to their maturity are classified as held-to-maturity securities. All other debt and equity securities are classified as either available-for-sale or other securities.
The following tables provide amortized cost, fair value, and gross unrealized gains and losses by investment category at September 30, 2022 and December 31, 2021:
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|
|
Unrealized |
|
|
| (dollar amounts in millions) |
Amortized
Cost (1)(2)
|
|
Gross
Gains |
|
Gross
Losses |
|
Fair Value |
| September 30, 2022 |
|
|
|
|
|
|
|
| Available-for-sale securities: |
|
|
|
|
|
|
|
| U.S. Treasury |
$ |
5 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
5 |
|
| Federal agencies: |
|
|
|
|
|
|
|
| Residential CMO |
3,417 |
|
|
— |
|
|
(382) |
|
|
3,035 |
|
| Residential MBS |
14,269 |
|
|
— |
|
|
(2,286) |
|
|
11,983 |
|
| Commercial MBS |
2,581 |
|
|
— |
|
|
(543) |
|
|
2,038 |
|
| Other agencies |
199 |
|
|
— |
|
|
(9) |
|
|
190 |
|
Total U.S. Treasury, federal agency, and other agency securities |
20,471 |
|
|
— |
|
|
(3,220) |
|
|
17,251 |
|
| Municipal securities |
3,626 |
|
|
1 |
|
|
(251) |
|
|
3,376 |
|
| Private-label CMO |
151 |
|
|
1 |
|
|
(10) |
|
|
142 |
|
| Asset-backed securities |
414 |
|
|
1 |
|
|
(44) |
|
|
371 |
|
| Corporate debt |
2,464 |
|
|
140 |
|
|
(442) |
|
|
2,162 |
|
| Other securities/Sovereign debt |
4 |
|
|
— |
|
|
— |
|
|
4 |
|
| Total available-for-sale securities |
$ |
27,130 |
|
|
$ |
143 |
|
|
$ |
(3,967) |
|
|
$ |
23,306 |
|
|
|
|
|
|
|
|
|
| Held-to-maturity securities: |
|
|
|
|
|
|
|
| Federal agencies: |
|
|
|
|
|
|
|
| Residential CMO |
$ |
4,757 |
|
|
$ |
— |
|
|
$ |
(667) |
|
|
$ |
4,090 |
|
| Residential MBS |
10,517 |
|
|
— |
|
|
(1,474) |
|
|
9,043 |
|
| Commercial MBS |
1,756 |
|
|
— |
|
|
(188) |
|
|
1,568 |
|
| Other agencies |
141 |
|
|
— |
|
|
(9) |
|
|
132 |
|
| Total federal agency and other agency securities |
17,171 |
|
|
— |
|
|
(2,338) |
|
|
14,833 |
|
| Municipal securities |
2 |
|
|
— |
|
|
— |
|
|
2 |
|
| Total held-to-maturity securities |
$ |
17,173 |
|
|
$ |
— |
|
|
$ |
(2,338) |
|
|
$ |
14,835 |
|
|
|
|
|
|
|
|
|
| Other securities, at cost: |
|
|
|
|
|
|
|
| Non-marketable equity securities: |
|
|
|
|
|
|
|
| Federal Home Loan Bank stock |
$ |
245 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
245 |
|
| Federal Reserve Bank stock |
515 |
|
|
— |
|
|
— |
|
|
515 |
|
| Equity securities |
8 |
|
|
— |
|
|
— |
|
|
8 |
|
| Other securities, at fair value: |
|
|
|
|
|
|
|
| Mutual funds |
47 |
|
|
— |
|
|
— |
|
|
47 |
|
| Equity securities |
2 |
|
|
1 |
|
|
— |
|
|
3 |
|
| Total other securities |
$ |
817 |
|
|
$ |
1 |
|
|
$ |
— |
|
|
$ |
818 |
|
|
|
|
|
|
|
|
|
(1)Amortized cost amounts exclude accrued interest receivable, which is recorded within accrued income and other receivables on the Consolidated Balance Sheets. At September 30, 2022, accrued interest receivable on available-for-sale securities and held-to-maturity securities totaled $71 million and $38 million, respectively.
(2)Excluded from the amortized cost are portfolio level basis adjustments for securities designated in fair value hedges under the portfolio layer method. The basis adjustments totaled $892 million and represent a reduction to the amortized cost of the securities being hedged. The securities being hedged under the portfolio layer method are primarily Residential CMO and Residential MBS securities.
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|
|
Unrealized |
|
|
| (dollar amounts in millions) |
Amortized
Cost (1) |
|
Gross
Gains |
|
Gross
Losses |
|
Fair Value |
| December 31, 2021 |
|
|
|
|
|
|
|
| Available-for-sale securities: |
|
|
|
|
|
|
|
| U.S. Treasury |
$ |
5 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
5 |
|
| Federal agencies: |
|
|
|
|
|
|
|
| Residential CMO |
4,649 |
|
|
40 |
|
|
(40) |
|
|
4,649 |
|
| Residential MBS |
15,533 |
|
|
135 |
|
|
(160) |
|
|
15,508 |
|
| Commercial MBS |
1,896 |
|
|
7 |
|
|
(38) |
|
|
1,865 |
|
| Other agencies |
248 |
|
|
1 |
|
|
(1) |
|
|
248 |
|
| Total U.S. Treasury, federal agency, and other agency securities |
22,331 |
|
|
183 |
|
|
(239) |
|
|
22,275 |
|
| Municipal securities |
3,497 |
|
|
62 |
|
|
(33) |
|
|
3,526 |
|
| Private-label CMO |
106 |
|
|
1 |
|
|
(1) |
|
|
106 |
|
| Asset-backed securities |
385 |
|
|
1 |
|
|
(4) |
|
|
382 |
|
| Corporate debt |
2,183 |
|
|
22 |
|
|
(38) |
|
|
2,167 |
|
| Other securities/Sovereign debt |
4 |
|
|
— |
|
|
— |
|
|
4 |
|
| Total available-for-sale securities |
$ |
28,506 |
|
|
$ |
269 |
|
|
$ |
(315) |
|
|
$ |
28,460 |
|
|
|
|
|
|
|
|
|
| Held-to-maturity securities: |
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|
|
|
|
|
|
| Federal agencies: |
|
|
|
|
|
|
|
| Residential CMO |
$ |
2,602 |
|
|
$ |
35 |
|
|
$ |
(20) |
|
|
$ |
2,617 |
|
| Residential MBS |
7,475 |
|
|
41 |
|
|
(59) |
|
|
7,457 |
|
| Commercial MBS |
2,175 |
|
|
45 |
|
|
(5) |
|
|
2,215 |
|
| Other agencies |
193 |
|
|
5 |
|
|
— |
|
|
198 |
|
| Total federal agency and other agency securities |
12,445 |
|
|
126 |
|
|
(84) |
|
|
12,487 |
|
| Municipal securities |
2 |
|
|
— |
|
|
— |
|
|
2 |
|
| Total held-to-maturity securities |
$ |
12,447 |
|
|
$ |
126 |
|
|
$ |
(84) |
|
|
$ |
12,489 |
|
|
|
|
|
|
|
|
|
| Other securities, at cost: |
|
|
|
|
|
|
|
| Non-marketable equity securities: |
|
|
|
|
|
|
|
| Federal Home Loan Bank stock |
$ |
52 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
52 |
|
| Federal Reserve Bank stock |
512 |
|
|
— |
|
|
— |
|
|
512 |
|
| Equity securities |
12 |
|
|
— |
|
|
— |
|
|
12 |
|
| Other securities, at fair value: |
|
|
|
|
|
|
|
| Mutual funds |
65 |
|
|
— |
|
|
— |
|
|
65 |
|
| Equity securities |
6 |
|
|
1 |
|
|
— |
|
|
7 |
|
| Total other securities |
$ |
647 |
|
|
$ |
1 |
|
|
$ |
— |
|
|
$ |
648 |
|
|
|
|
|
|
|
|
|
(1)Amortized cost amounts exclude accrued interest receivable, which is recorded within accrued income and other receivables on the Consolidated Balance Sheets. At December 31, 2021, accrued interest receivable on available-for-sale securities and held-to-maturity securities totaled $62 million and $26 million, respectively.
The following table provides the amortized cost and fair value of securities by contractual maturity at September 30, 2022 and December 31, 2021. Expected maturities may differ from contractual maturities as issuers may have the right to call or prepay obligations with or without incurring penalties.
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|
|
|
September 30, 2022 |
|
December 31, 2021 |
| (dollar amounts in millions) |
Amortized
Cost
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Fair
Value
|
| Available-for-sale securities: |
|
|
|
|
|
|
|
| Under 1 year |
$ |
462 |
|
|
$ |
448 |
|
|
$ |
377 |
|
|
$ |
374 |
|
| After 1 year through 5 years |
2,566 |
|
|
2,367 |
|
|
1,888 |
|
|
1,880 |
|
| After 5 years through 10 years |
3,059 |
|
|
2,735 |
|
|
3,166 |
|
|
3,180 |
|
| After 10 years |
21,043 |
|
|
17,756 |
|
|
23,075 |
|
|
23,026 |
|
| Total available-for-sale securities |
$ |
27,130 |
|
|
$ |
23,306 |
|
|
$ |
28,506 |
|
|
$ |
28,460 |
|
|
|
|
|
|
|
|
|
| Held-to-maturity securities: |
|
|
|
|
|
|
|
| Under 1 year |
$ |
1 |
|
|
$ |
1 |
|
|
$ |
2 |
|
|
$ |
2 |
|
| After 1 year through 5 years |
98 |
|
|
94 |
|
|
162 |
|
|
164 |
|
| After 5 years through 10 years |
57 |
|
|
53 |
|
|
44 |
|
|
45 |
|
| After 10 years |
17,017 |
|
|
14,687 |
|
|
12,239 |
|
|
12,278 |
|
| Total held-to-maturity securities |
$ |
17,173 |
|
|
$ |
14,835 |
|
|
$ |
12,447 |
|
|
$ |
12,489 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
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|
|
The following tables provide detail on investment securities with unrealized losses aggregated by investment category and the length of time the individual securities have been in a continuous loss position at September 30, 2022 and December 31, 2021:
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less than 12 Months |
|
Over 12 Months |
|
Total |
| (dollar amounts in millions) |
Fair
Value |
|
Gross Unrealized
Losses |
|
Fair
Value |
|
Gross Unrealized
Losses |
|
Fair
Value |
|
Gross Unrealized
Losses |
| September 30, 2022 |
|
|
|
|
|
|
|
|
|
|
|
| Available-for-sale securities: |
|
|
|
|
|
|
|
|
|
|
|
| Federal agencies: |
|
|
|
|
|
|
|
|
|
|
|
| Residential CMO |
$ |
2,330 |
|
|
$ |
(220) |
|
|
$ |
705 |
|
|
$ |
(162) |
|
|
$ |
3,035 |
|
|
$ |
(382) |
|
| Residential MBS |
5,580 |
|
|
(921) |
|
|
6,402 |
|
|
(1,365) |
|
|
11,982 |
|
|
(2,286) |
|
| Commercial MBS |
1,462 |
|
|
(324) |
|
|
576 |
|
|
(219) |
|
|
2,038 |
|
|
(543) |
|
| Other agencies |
28 |
|
|
(1) |
|
|
52 |
|
|
(8) |
|
|
80 |
|
|
(9) |
|
| Total federal agency and other agency securities |
9,400 |
|
|
(1,466) |
|
|
7,735 |
|
|
(1,754) |
|
|
17,135 |
|
|
(3,220) |
|
| Municipal securities |
2,863 |
|
|
(226) |
|
|
401 |
|
|
(25) |
|
|
3,264 |
|
|
(251) |
|
| Private-label CMO |
94 |
|
(8) |
|
|
20 |
|
|
(2) |
|
|
114 |
|
(10) |
|
| Asset-backed securities |
240 |
|
|
(20) |
|
|
131 |
|
|
(24) |
|
|
371 |
|
|
(44) |
|
| Corporate debt |
1,240 |
|
|
(229) |
|
|
920 |
|
|
(213) |
|
|
2,160 |
|
|
(442) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total temporarily impaired available-for-sale securities |
$ |
13,837 |
|
|
$ |
(1,949) |
|
|
$ |
9,207 |
|
|
$ |
(2,018) |
|
|
$ |
23,044 |
|
|
$ |
(3,967) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Held-to-maturity securities: |
|
|
|
|
|
|
|
|
|
|
|
| Federal agencies: |
|
|
|
|
|
|
|
|
|
|
|
| Residential CMO |
$ |
3,279 |
|
|
$ |
(510) |
|
|
$ |
811 |
|
|
$ |
(157) |
|
|
$ |
4,090 |
|
|
$ |
(667) |
|
| Residential MBS |
5,851 |
|
|
(811) |
|
|
3,174 |
|
|
(663) |
|
|
9,025 |
|
|
(1,474) |
|
| Commercial MBS |
1,360 |
|
|
(151) |
|
|
207 |
|
|
(37) |
|
|
1,567 |
|
|
(188) |
|
| Other agencies |
132 |
|
|
(9) |
|
|
— |
|
|
— |
|
|
132 |
|
|
(9) |
|
| Total federal agency and other agency securities |
10,622 |
|
|
(1,481) |
|
|
4,192 |
|
|
(857) |
|
|
14,814 |
|
|
(2,338) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total temporarily impaired held-to-maturity securities |
$ |
10,622 |
|
|
$ |
(1,481) |
|
|
$ |
4,192 |
|
|
$ |
(857) |
|
|
$ |
14,814 |
|
|
$ |
(2,338) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less than 12 Months |
|
Over 12 Months |
|
Total |
|
|
| (dollar amounts in millions) |
Fair
Value |
|
Gross Unrealized
Losses |
|
Fair
Value |
|
Gross Unrealized
Losses |
|
Fair
Value |
|
Gross Unrealized
Losses |
|
|
| December 31, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Available-for-sale securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Federal agencies: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Residential CMO |
$ |
2,925 |
|
|
$ |
(40) |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
2,925 |
|
|
$ |
(40) |
|
|
|
| Residential MBS |
13,491 |
|
|
(160) |
|
|
— |
|
|
— |
|
|
13,491 |
|
|
(160) |
|
|
|
| Commercial MBS |
1,251 |
|
|
(38) |
|
|
— |
|
|
— |
|
|
1,251 |
|
|
(38) |
|
|
|
| Other agencies |
140 |
|
|
(1) |
|
|
— |
|
|
— |
|
|
140 |
|
|
(1) |
|
|
|
| Total federal agency and other agency securities |
17,807 |
|
|
(239) |
|
|
— |
|
|
— |
|
|
17,807 |
|
|
(239) |
|
|
|
| Municipal securities |
859 |
|
|
(22) |
|
|
319 |
|
|
(11) |
|
|
1,178 |
|
|
(33) |
|
|
|
| Private-label CMO |
78 |
|
|
(1) |
|
|
— |
|
|
— |
|
|
78 |
|
|
(1) |
|
|
|
| Asset-backed securities |
237 |
|
|
(4) |
|
|
— |
|
|
— |
|
|
237 |
|
|
(4) |
|
|
|
| Corporate debt |
1,766 |
|
|
(38) |
|
|
— |
|
|
— |
|
|
1,766 |
|
|
(38) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total temporarily impaired available-for-sale securities |
$ |
20,747 |
|
|
$ |
(304) |
|
|
$ |
319 |
|
|
$ |
(11) |
|
|
$ |
21,066 |
|
|
$ |
(315) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Held-to-maturity securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Federal agencies: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Residential CMO |
$ |
1,453 |
|
|
$ |
(20) |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,453 |
|
|
$ |
(20) |
|
|
|
| Residential MBS |
5,837 |
|
|
(59) |
|
|
— |
|
|
— |
|
|
5,837 |
|
|
(59) |
|
|
|
| Commercial MBS |
318 |
|
|
(5) |
|
|
— |
|
|
— |
|
|
318 |
|
|
(5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total federal agency and other agency securities |
7,608 |
|
|
(84) |
|
|
— |
|
|
— |
|
|
7,608 |
|
|
(84) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total temporarily impaired held-to-maturity securities |
$ |
7,608 |
|
|
$ |
(84) |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
7,608 |
|
|
$ |
(84) |
|
|
|
During the 2022 first quarter, Huntington transferred $4.2 billion of securities from the AFS portfolio to the HTM portfolio. At the time of the transfer, AOCI included $58 million of net unrealized losses (after-tax) attributed to these securities. This loss will be amortized into interest income over the remaining life of the securities.
At September 30, 2022 and December 31, 2021, the carrying value of investment securities pledged: (i) to secure public and trust deposits, trading account liabilities, U.S. Treasury demand notes, and security repurchase agreements, and (ii) to support borrowing capacity, totaled $28.0 billion and $21.7 billion, respectively. There were no securities of a single issuer, which were not governmental or government-sponsored, that exceeded 10% of shareholders’ equity at either September 30, 2022 or December 31, 2021. At September 30, 2022, all HTM debt securities are considered AAA rated. In addition, there were no HTM debt securities considered past due at September 30, 2022.
Based on an evaluation of available information including security type, counterparty credit quality, past events, current conditions, and reasonable and supportable forecasts that are relevant to collectability of cash flows, as of September 30, 2022, Huntington has concluded that except for one municipal bond classified as an AFS debt security for which a charge-off of $4 million was recognized during the 2022 first quarter, it expects to receive all contractual cash flows from each security held in its AFS and HTM debt securities portfolio. There was no allowance related to investment securities as of September 30, 2022 or December 31, 2021.
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