| OTHER COMPREHENSIVE INCOME |
OTHER COMPREHENSIVE INCOME The components of Huntington’s OCI for the three-month and six-month periods ended June 30, 2023 and 2022, 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, 2023 |
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| Unrealized gains (losses) on available-for-sale securities arising during the period |
$ |
(282) |
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|
$ |
65 |
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|
$ |
(217) |
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| Reclassification adjustment for realized net losses included in net income |
35 |
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|
(8) |
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|
27 |
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| Total unrealized gains (losses) on available-for-sale securities |
(247) |
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|
57 |
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|
(190) |
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| Net impact of fair value hedges on available-for-sale securities |
139 |
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|
(32) |
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|
107 |
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| Unrealized gains (losses) on cash flow hedges during the period |
(266) |
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|
65 |
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|
(201) |
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| Reclassification adjustment for cash flow hedges included in net income |
34 |
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(2) |
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32 |
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| Net change related to cash flow hedges on loans |
(232) |
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63 |
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(169) |
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| Translation adjustments, net of hedges (1) |
1 |
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— |
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|
1 |
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| Other comprehensive income (loss) |
$ |
(339) |
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$ |
88 |
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$ |
(251) |
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| Three months ended June 30, 2022 |
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| Unrealized gains (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 gains (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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| Net change related to cash flow hedges on loans |
(111) |
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25 |
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|
(86) |
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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 income (loss) |
$ |
(1,015) |
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$ |
231 |
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$ |
(784) |
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| Six months ended June 30, 2023 |
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| Unrealized gains (losses) on available-for-sale securities arising during the period |
$ |
97 |
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$ |
(22) |
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$ |
75 |
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| Reclassification adjustment for realized net losses included in net income |
38 |
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|
(9) |
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29 |
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| Total unrealized gains (losses) on available-for-sale securities |
135 |
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|
(31) |
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104 |
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| Net impact of fair value hedges on available-for-sale securities |
(43) |
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10 |
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|
(33) |
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| Unrealized gains (losses) on cash flow hedging relationships arising during the period |
(35) |
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|
12 |
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|
(23) |
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| Reclassification adjustment for cash flow hedges included in net income |
46 |
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|
(3) |
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|
43 |
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| Net change related to cash flow hedges |
11 |
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|
9 |
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|
20 |
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| Translation adjustments, net of hedges (1) |
1 |
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— |
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|
1 |
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| Other comprehensive income (loss) |
$ |
104 |
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$ |
(12) |
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$ |
92 |
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| Six months ended June 30, 2022 |
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| Unrealized gains (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 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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| Net change related to cash flow hedges |
(421) |
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|
95 |
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(326) |
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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 income (loss) |
$ |
(2,422) |
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$ |
553 |
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|
$ |
(1,869) |
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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, 2023 and 2022, 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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Net change related to cash flow hedges on loans |
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Translation adjustments, net of hedges |
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Unrealized
gains
(losses) for
pension and
other post-
retirement
obligations
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Total |
| Three months ended June 30, 2023 |
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| Balance, beginning of period |
$ |
(2,708) |
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$ |
614 |
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$ |
(443) |
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$ |
(8) |
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$ |
(210) |
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$ |
(2,755) |
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| Other comprehensive income (loss) before reclassifications |
(217) |
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|
107 |
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(201) |
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1 |
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— |
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(310) |
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| Amounts reclassified from accumulated OCI to earnings |
27 |
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— |
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32 |
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— |
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— |
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|
59 |
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| Period change |
(190) |
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|
107 |
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(169) |
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|
1 |
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— |
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(251) |
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| Balance, end of period |
$ |
(2,898) |
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$ |
721 |
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$ |
(612) |
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$ |
(7) |
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$ |
(210) |
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$ |
(3,006) |
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| 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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| Six months ended June 30, 2023 |
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| Balance, beginning of period |
$ |
(3,002) |
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|
$ |
754 |
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|
$ |
(632) |
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$ |
(8) |
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$ |
(210) |
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$ |
(3,098) |
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| Other comprehensive income (loss) before reclassifications |
75 |
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|
(33) |
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|
(23) |
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|
1 |
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— |
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|
20 |
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| Amounts reclassified from accumulated OCI to earnings |
29 |
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|
43 |
|
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|
|
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|
— |
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|
— |
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|
72 |
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| Period change |
104 |
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|
(33) |
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|
20 |
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|
1 |
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— |
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|
92 |
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| Balance, end of period |
$ |
(2,898) |
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|
$ |
721 |
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|
$ |
(612) |
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|
$ |
(7) |
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$ |
(210) |
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$ |
(3,006) |
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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) |
|
|
$ |
(229) |
|
| Other comprehensive income (loss) before reclassifications |
(2,069) |
|
|
455 |
|
|
(326) |
|
|
|
|
|
|
(2) |
|
|
— |
|
|
(1,942) |
|
| Amounts reclassified from accumulated OCI to earnings |
70 |
|
|
— |
|
|
— |
|
|
|
|
|
|
— |
|
|
3 |
|
|
73 |
|
| Period change |
(1,999) |
|
|
455 |
|
|
(326) |
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|
|
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|
(2) |
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|
3 |
|
|
(1,869) |
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| Balance, end of period |
$ |
(2,152) |
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|
$ |
544 |
|
|
$ |
(263) |
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|
|
|
|
$ |
(5) |
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|
$ |
(222) |
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|
$ |
(2,098) |
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(1)AOCI amounts at June 30, 2023 and June 30, 2022 include $62 million and $73 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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