Quarterly report pursuant to Section 13 or 15(d)

FAIR VALUES OF ASSETS AND LIABILITIES (Tables)

v3.23.2
FAIR VALUES OF ASSETS AND LIABILITIES (Tables)
 6 Months Ended
Jun. 30, 2023
Fair Value Disclosures [Abstract]  
Assets and liabilities measured at fair value on a recurring basis
Assets and Liabilities measured at fair value on a recurring basis
Fair Value Measurements at Reporting Date Using Netting Adjustments (1) At June 30, 2023
(dollar amounts in millions) Level 1 Level 2 Level 3
Assets
Trading account securities:
U.S. Treasury securities $ 90  $ —  $ —  $ —  $ 90 
Municipal securities —  33  —  —  33 
Corporate debt —  5  —  —  5 
Total trading account securities
 90  38  —  —  128 
Available-for-sale securities:
U.S. Treasury securities 5  —  —  —  5 
Residential CMO —  3,308  —  —  3,308 
Residential MBS —  11,811  —  —  11,811 
Commercial MBS —  1,898  —  —  1,898 
Other agencies —  168  —  —  168 
Municipal securities —  40  3,496  —  3,536 
Private-label CMO —  103  20  —  123 
Asset-backed securities —  294  75  —  369 
Corporate debt —  2,011  —  —  2,011 
Other securities/sovereign debt —  4  —  —  4 
Total available-for-sale securities
 5  19,637  3,591  —  23,233 
Other securities 32  1  —  —  33 
Loans held for sale —  543  —  —  543 
Loans held for investment —  142  33  —  175 
MSRs —  —  505  —  505 
Other assets:
Derivative assets —  2,159  5  (1,715) 449 
Assets held in trust for deferred compensation plans 168  —  —  —  168 
Liabilities
Derivative liabilities —  2,039  7  (1,111) 935 
Fair Value Measurements at Reporting Date Using
Netting Adjustments (1)
 At December 31, 2022
(dollar amounts in millions)
Level 1
Level 2
Level 3
Assets
Trading account securities:
Municipal securities $ —  $ 19  $ —  $ —  $ 19 
Available-for-sale securities:
U.S. Treasury securities 103  —  —  —  103 
Residential CMOs —  2,914  —  —  2,914 
Residential MBS —  12,263  —  —  12,263 
Commercial MBS —  1,953  —  —  1,953 
Other agencies —  182  —  —  182 
Municipal securities —  42  3,248  —  3,290 
Private-label CMO —  108  20  —  128 
Asset-backed securities —  298  74  —  372 
Corporate debt —  2,214  —  —  2,214 
Other securities/sovereign debt —  4  —  —  4 
Total available-for-sale securities 103  19,978  3,342  —  23,423 
Other securities 31  1  —  —  32 
Loans held for sale —  520  —  —  520 
Loans held for investment —  169  16  —  185 
MSRs —  —  494  —  494 
Other assets:
Derivative assets —  2,161  3  (1,808) 356 
Assets held in trust for deferred compensation plans 155  —  —  —  155 
Liabilities
Derivative liabilities —  2,332  5  (1,345) 992 
(1)Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions and cash collateral held or placed with the same counterparties.
Rollforward of financial instruments measured on a recurring basis and classified as Level 3 The following tables present a rollforward of the balance sheet amounts measured at fair value on a recurring basis and classified as Level 3. The classification of an item as Level 3 is based on the significance of the unobservable inputs to the overall fair value measurement. However, Level 3 measurements may also include observable components of value that can be validated externally. Accordingly, the gains and losses in the table below include changes in fair value due in part to observable factors that are part of the valuation methodology.
Level 3 Fair Value Measurements
Available-for-sale securities Loans held for investment
(dollar amounts in millions) MSRs
Derivative
instruments
Municipal
securities
 Private-
label CMO
Asset-backed
securities
Three months ended June 30, 2023
Opening balance $ 485  $ 3  $ 3,339  $ 20  $ 74  $ 15 
Transfers into Level 3 —  —  —  —  —  19 
Transfers out of Level 3 (1) —  (8) —  —  —  — 
Total gains/losses for the period:
Included in earnings:
Mortgage banking income 15  3  —  —  —  — 
Interest and fee income —  —  —  —  —  — 
Included in OCI —  —  (7) —  1  — 
Purchases/originations 18  —  378  —  —  — 
Repayments —  —  —  —  —  (1)
Settlements (13) —  (214) —  —  — 
Closing balance $ 505  $ (2) $ 3,496  $ 20  $ 75  $ 33 
Change in unrealized gains or losses for the period included in earnings for assets held at end of the reporting date $ 15  $ (1) $ —  $ —  $ —  $ — 
Change in unrealized gains or losses for the period included in other comprehensive income for assets held at the end of the reporting period —  —  (13) —  —  — 
Three months ended June 30, 2022
Opening balance $ 416  $ (10) $ 3,282  $ 19  $ 62  $ 18 
Transfers out of Level 3 (1) —  7  —  —  —  — 
Total gains/losses for the period:
Included in earnings:
Mortgage banking income 44  (2) —  —  —  — 
Interest and fee income —  —  —  (1) —  — 
Included in OCI —  —  (88) —  —  — 
Purchases/originations 18  —  386  4  —  — 
Repayments —  —  —  —  —  (1)
Settlements (15) —  (203) —  (18) — 
Closing balance $ 463  $ (5) $ 3,377  $ 22  $ 44  $ 17 
Change in unrealized gains or losses for the period included in earnings for assets held at end of the reporting date $ 44  $ 7  $ —  $ —  $ —  $ — 
Change in unrealized gains or losses for the period included in other comprehensive income for assets held at the end of the reporting period —  —  (90) —  —  — 
(1)Transfers out of Level 3 represent the settlement value of the derivative instruments (i.e., interest rate lock agreements) that are transferred to loans held for sale, which is classified as Level 2.
Level 3 Fair Value Measurements
Available-for-sale securities
Loans held for investment
(dollar amounts in millions)
MSRs
Derivative
instruments
Municipal
securities
 Private- label CMO
Asset-backed
securities
Six months ended June 30, 2023
Opening balance $ 494  $ (2) $ 3,248  $ 20  $ 74  $ 16 
Transfers into Level 3 —  —  —  —  —  19 
Transfers out of Level 3 (1) —  (10) —  —  —  — 
Total gains/losses for the period:
Included in earnings:
Mortgage banking income 3  10  —  —  —  — 
Interest and fee income —  —  —  (1) —  — 
Included in OCI —  —  (4) —  1  — 
Purchases/originations 31  —  555  1  —  — 
Repayments —  —  —  —  —  (2)
Settlements (23) —  (303) —  —  — 
Closing balance $ 505  $ (2) $ 3,496  $ 20  $ 75  $ 33 
Change in unrealized gains or losses for the period included in earnings for assets held at end of the reporting date $ 3  $ 4  $ —  $ —  $ —  $ — 
Change in unrealized gains or losses for the period included in other comprehensive income for assets held at the end of the reporting period —  —  (10) —  —  — 
Six months ended June 30, 2022
Opening balance $ 351  $ 4  $ 3,477  $ 20  $ 70  $ 19 
Total gains/losses for the period:
Included in earnings
Mortgage banking income 95  (9) —  —  —  — 
Interest and fee income —  —  (2) (2) —  — 
Provision for credit losses —  —  (4) —  —  — 
Included in OCI —  —  (208) —  (1) — 
Purchases/originations 48  —  558  4  —  — 
Repayments —  —  —  —  —  (2)
Settlements (31) —  (444) —  (25) — 
Closing balance $ 463  $ (5) $ 3,377  $ 22  $ 44  $ 17 
Change in unrealized gains or losses for the period included in earnings for assets held at end of the reporting date $ 95  $ (9) $ —  $ —  $ —  $ — 
Change in unrealized gains or losses for the period included in other comprehensive income for assets held at the end of the reporting period —  —  (205) —  —  — 
(1)Transfers out of Level 3 represent the settlement value of the derivative instruments (i.e., interest rate lock agreements) that are transferred to loans held for sale, which is classified as Level 2.
Assets and liabilities under the fair value option
The following table presents the fair value and aggregate principal balance of certain assets and liabilities under the fair value option:
Total Loans Loans that are 90 or more days past due
(dollar amounts in millions) Fair value
carrying
amount		 Aggregate
unpaid
principal		 Difference Fair value
carrying
amount		 Aggregate
unpaid
principal		 Difference
At June 30, 2023
Loans held for sale $ 543  $ 536  $ 7  $ —  $ —  $ — 
Loans held for investment 175  183  (8) 2  2  — 
At December 31, 2022
Loans held for sale $ 520  $ 513  $ 7  $ —  $ —  $ — 
Loans held for investment 185  190  (5) 11  11  — 
The following table presents the net gains (losses) from fair value changes.
Three months ended June 30, Six months ended June 30,
(dollar amounts in millions) 2023 2022 2023 2022
Loans held for sale (1) $ —  $ 10  $ —  $ (34)
Loans held for investment (3) —  (3) 1 
(1)The net gains (losses) from fair value changes are included in Mortgage banking income on the Unaudited Consolidated Statements of Income.
Assets measured at fair value on a nonrecurring basis
The amounts measured at fair value on a nonrecurring basis were as follows:
Fair Value Measurements Using Significant Other Unobservable Inputs (Level 3) Total Losses
Three months ended June 30, Six months ended June 30,
(dollar amounts in millions) At June 30, 2023 At December 31, 2022 2023 2022 2023 2022
Collateral-dependent loans $ 35  $ 16  $ (1) $ —  $ (7) $ (1)
Quantitative information about significant unobservable level 3 fair value measurement inputs
The table below presents quantitative information about the significant unobservable inputs for assets and liabilities measured at fair value on a recurring and nonrecurring basis:
Quantitative Information about Level 3 Fair Value Measurements
At June 30, 2023 (1)
At December 31, 2022 (1)
(dollar amounts in millions) Valuation Technique Significant Unobservable Input Range Weighted Average Range Weighted Average
Measured at fair value on a recurring basis:
MSRs Discounted cash flow Constant prepayment rate 5  % - 28  % 8  % 5  % - 40  % 7  %
Spread over forward interest rate swap rates 5  % - 13  % 6  % 5  % - 13  % 6  %
Municipal securities and asset-backed securities Discounted cash flow Discount rate 5  % - 6  % 6  % 5  % - 5  % 5  %
Cumulative default —  % - 64  % 7  % —  % - 64  % 7  %
Loss given default 20  % - 20  % 20  % 20  % - 20  % 20  %
(1)     Certain disclosures related to quantitative level 3 fair value measurements do not include those deemed to be immaterial.
Carrying amounts and estimated fair values of financial instruments
The following table provides the carrying amounts and estimated fair values of Huntington’s financial instruments:
(dollar amounts in millions) Amortized Cost Lower of Cost or Market
Fair Value or
Fair Value Option
 Total Carrying Amount Estimated Fair Value
At June 30, 2023
Financial Assets
Cash and short-term assets $ 11,289  $ —  $ —  $ 11,289  $ 11,289 
Trading account securities —  —  128  128  128 
Available-for-sale securities —  —  23,233  23,233  23,233 
Held-to-maturity securities 16,578  —  —  16,578  14,308 
Other securities 942  —  33  975  975 
Loans held for sale —  2  543  545  545 
Net loans and leases (1) 118,873  —  175  119,048  114,587 
Derivative assets —  —  449  449  449 
Assets held in trust for deferred compensation plans —  —  168  168  168 
Financial Liabilities
Deposits 148,028  —  —  148,028  147,911 
Short-term borrowings 1,680  —  —  1,680  1,680 
Long-term debt 14,711  —  —  14,711  14,407 
Derivative liabilities —  —  935  935  935 
At December 31, 2022
Financial Assets
Cash and short-term assets $ 6,918  $ —  $ —  $ 6,918  $ 6,918 
Trading account securities —  —  19  19  19 
Available-for-sale securities —  —  23,423  23,423  23,423 
Held-to-maturity securities 17,052  —  —  17,052  14,754 
Other securities 822  —  32  854  854 
Loans held for sale —  9  520  529  529 
Net loans and leases (1) 117,217  —  185  117,402  112,591 
Derivative assets —  —  356  356  356 
Assets held in trust for deferred compensation plans —  —  155  155  155 
Financial Liabilities
Deposits 147,914  —  —  147,914  147,796 
Short-term borrowings 2,027  —  —  2,027  2,027 
Long-term debt 9,686  —  —  9,686  9,564 
Derivative liabilities —  —  992  992  992 
(1)Includes collateral-dependent loans.
The following table presents the level in the fair value hierarchy for the estimated fair values at June 30, 2023 and December 31, 2022:
Estimated Fair Value Measurements at Reporting Date Using Netting Adjustments (1)  Presented Balance
(dollar amounts in millions) Level 1 Level 2 Level 3
At June 30, 2023
Financial Assets
Trading account securities $ 90  $ 38  $ —  $ 128 
Available-for-sale securities 5  19,637  3,591  23,233 
Held-to-maturity securities —  14,308  —  14,308 
Other securities (2) 32  1  —  33 
Loans held for sale —  545  —  545 
Net loans and leases —  142  114,445  114,587 
Derivative assets —  2,159  5  $ (1,715) 449 
Financial Liabilities
Deposits —  135,562  12,349  147,911 
Short-term borrowings —  1,680  —  1,680 
Long-term debt —  8,048  6,359  14,407 
Derivative liabilities —  2,039  7  (1,111) 935 
At December 31, 2022
Financial Assets
Trading account securities $ —  $ 19  $ —  $ 19 
Available-for-sale securities 103  19,978  3,342  23,423 
Held-to-maturity securities —  14,754  —  14,754 
Other securities (2) 31  1  —  32 
Loans held for sale —  520  9  529 
Net loans and leases —  169  112,422  112,591 
Derivative assets —  2,161  3  $ (1,808) 356 
Financial Liabilities
Deposits —  142,081  5,715  147,796 
Short-term borrowings —  2,027  —  2,027 
Long-term debt —  8,680  884  9,564 
Derivative liabilities —  2,332  5  (1,345) 992 
(1)Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions and cash collateral held or placed with the same counterparties.
(2)Excludes securities without readily determinable fair values.