Quarterly report pursuant to Section 13 or 15(d)

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

v3.23.1
DERIVATIVE FINANCIAL INSTRUMENTS (Tables)
 3 Months Ended
Mar. 31, 2023
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 Consolidated Balance Sheets at March 31, 2023 and December 31, 2022. Amounts in the table below are presented gross without the impact of any net collateral arrangements.
At March 31, 2023 At December 31, 2022
(dollar amounts in millions) Notional Value Asset Liability Notional Value Asset Liability
Derivatives designated as Hedging Instruments
Interest rate contracts $ 42,515  $ 1,037  $ 616  $ 42,461  $ 1,008  $ 1,145 
Foreign exchange contracts 204  4  —  202  2  — 
Derivatives not designated as Hedging Instruments
Interest rate contracts 40,809  773  790  37,562  968  1,008 
Foreign exchange contracts 5,621  65  68  4,889  68  68 
Commodities contracts 852  111  108  762  114  113 
Equity contracts 678  —  16  636  4  3 
Total Contracts $ 90,679  $ 1,990  $ 1,598  $ 86,512  $ 2,164  $ 2,337 
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 Consolidated Income Statement for the three-month periods ended March 31, 2023 and 2022, 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) 2023 2022
Interest rate contracts:
Customer Capital markets fees $ 7  $ 10 
Mortgage banking Mortgage banking income 9  (47)
Interest rate swaptions Other noninterest income (1) — 
Foreign exchange contracts Capital markets fees 12  10 
Commodities contracts Capital markets fees 2  1 
Equity contracts Other noninterest expense (1) 1 
Total $ 28  $ (25)
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, 2023 and December 31, 2022, identified by the underlying interest rate-sensitive instruments.
(dollar amounts in millions) Fair Value Hedges Cash Flow Hedges Economic Hedges Total
At March 31, 2023
Instruments associated with:
Investment securities $ 11,961  $ —  $ 1,500  $ 13,461 
Loans —  22,825  175  23,000 
Long-term debt 7,729  —  —  7,729 
Total notional value $ 19,690  $ 22,825  $ 1,675  $ 44,190 
At December 31, 2022
Instruments associated with:
Investment securities $ 10,407  $ —  $ —  $ 10,407 
Loans —  24,325  175  24,500 
Long-term debt 7,729  —  —  7,729 
Total notional value $ 18,136  $ 24,325  $ 175  $ 42,636 
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, 2023 and 2022.
Three Months Ended
March 31,
(dollar amounts in millions) 2023 2022
Interest rate contracts
Change in fair value of interest rate swaps hedging investment securities (1) $ (182) $ 418 
Change in fair value of hedged investment securities (1) 181  (430)
Change in fair value of interest rate swaps hedging long-term debt (2) 116  (98)
Change in fair value of hedged long term debt (2) (116) 98 
(1)Recognized in Interest income—available-for-sale securities—taxable in the Unaudited Consolidated Statements of Income.
(2)Recognized in Interest expense—long-term debt in the Unaudited Consolidated Statements of Income.
Amounts recorded on the balance sheet related to cumulative basis adjustments
As of March 31, 2023 and December 31, 2022, 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) At March 31, 2023 At December 31, 2022 At March 31, 2023 At December 31, 2022
Assets
Investment securities (1) $ 19,619  $ 18,029  $ (798) $ (979)
Liabilities
Long-term debt (2) 7,293  7,175  (140) (256)
(1)Amounts include the amortized cost basis of closed portfolios used to designate hedging relationships under the portfolio layer method. The hedged item is a layer of the closed portfolio which is expected to be remaining at the end of the hedging relationship. As of March 31, 2023, the amortized cost basis of the closed portfolios used in these hedging relationships was $18.8 billion, the cumulative basis adjustments associated with these hedging relationships was $689 million, and the amounts of the designated hedging instruments were $11.1 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 $(70) million at March 31, 2023 and $(70) million at December 31, 2022.
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 Consolidated Balance Sheets at March 31, 2023 and December 31, 2022.
Offsetting of Financial Assets and Derivative Assets
Gross amounts
offset in the unaudited
consolidated
balance sheets		 Net amounts of
assets
presented in
the unaudited
consolidated
balance sheets		 Gross amounts not offset in the
unaudited consolidated
balance sheets
(dollar amounts in millions)
Gross amounts
of recognized
assets
Financial
instruments
Cash collateral
received
 Net amount
At March 31, 2023 $ 1,990  $ (1,564) $ 426  $ (66) $ (20) $ 340 
At December 31, 2022 2,164  (1,808) 356  (7) (56) 293 
MSR Derivative Hedging The notional value of the derivative financial instruments, the corresponding trading assets and liabilities positions, and net trading gains (losses) related to MSR hedging activity is summarized in the following tables:
(dollar amounts in millions) At March 31, 2023 At December 31, 2022
Notional value $ 1,135  $ 1,120 
Trading assets 5  4 
Trading liabilities (64) (78)
Three Months Ended
March 31, 2023
(dollar amounts in millions) 2023 2022
Trading gains (losses) $ 9  $ (47)
Offsetting of financial liabilities and derivative liabilities
Offsetting of Financial Liabilities and Derivative Liabilities
Gross amounts
offset in the unaudited
consolidated
balance sheets		 Net amounts of
liabilities
presented in
the unaudited consolidated
balance sheets		 Gross amounts not offset in the
unaudited consolidated
balance sheets
(dollar amounts in millions)
Gross amounts
of recognized
liabilities
Financial
instruments
Cash collateral
delivered
 Net amount
At March 31, 2023 $ 1,598  $ (861) $ 737  $ —  $ (92) $ 645 
At December 31, 2022 2,337  (1,345) 992  (79) (118) 795