Quarterly report pursuant to Section 13 or 15(d)

FAIR VALUES OF ASSETS AND LIABILITIES (Tables)

v3.23.3
FAIR VALUES OF ASSETS AND LIABILITIES (Tables)
 9 Months Ended
Sep. 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 September 30, 2023
(dollar amounts in millions) Level 1 Level 2 Level 3
Assets
Trading account securities:
U.S. Treasury securities $ 90  $ —  $ —  $ —  $ 90 
Municipal securities —  20  —  —  20 
Corporate debt —  11  —  —  11 
Total trading account securities
 90  31  —  —  121 
Available-for-sale securities:
U.S. Treasury securities 5  —  —  —  5 
Residential CMO —  3,131  —  —  3,131 
Residential MBS —  10,916  —  —  10,916 
Commercial MBS —  1,729  —  —  1,729 
Other agencies —  159  —  —  159 
Municipal securities —  40  3,437  —  3,477 
Private-label CMO —  98  20  —  118 
Asset-backed securities —  276  75  —  351 
Corporate debt —  1,973  —  —  1,973 
Other securities/sovereign debt —  4  —  —  4 
Total available-for-sale securities
 5  18,326  3,532  —  21,863 
Other securities 29  1  —  —  30 
Loans held for sale —  601  —  —  601 
Loans held for investment —  122  53  —  175 
MSRs —  —  547  —  547 
Other assets:
Derivative assets —  2,383  4  (1,923) 464 
Assets held in trust for deferred compensation plans 161  —  —  —  161 
Liabilities
Derivative liabilities —  2,232  5  (1,160) 1,077 
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 September 30, 2023
Opening balance $ 505  $ (2) $ 3,496  $ 20  $ 75  $ 33 
Transfers into Level 3 —  —  —  —  —  21 
Transfers out of Level 3 (1) —  (8) —  —  —  — 
Total gains/losses for the period:
Included in earnings:
Mortgage banking income 37  9  —  —  —  — 
Interest and fee income —  —  (2) —  —  (3)
Included in OCI —  —  17  —  —  — 
Purchases/originations 18  —  160  —  —  — 
Repayments —  —  —  —  —  2 
Settlements (13) —  (234) —  —  — 
Closing balance $ 547  $ (1) $ 3,437  $ 20  $ 75  $ 53 
Change in unrealized gains or losses for the period included in earnings for assets held at end of the reporting date $ 37  $ (3) $ —  $ —  $ —  $ — 
Change in unrealized gains or losses for the period included in other comprehensive income for assets held at the end of the reporting period —  —  12  —  —  — 
Three months ended September 30, 2022
Opening balance $ 463  $ (5) $ 3,377  $ 22  $ 44  $ 17 
Transfers out of Level 3 (1) —  (6) —  —  —  — 
Total gains/losses for the period:
Included in earnings:
Mortgage banking income 17  2  —  —  —  — 
Included in OCI —  —  (66) —  —  — 
Purchases/originations 20  —  309  —  26  — 
Repayments —  —  —  —  —  (1)
Settlements (14) —  (288) (1) —  — 
Closing balance $ 486  $ (9) $ 3,332  $ 21  $ 70  $ 16 
Change in unrealized gains or losses for the period included in earnings for assets held at end of the reporting date $ 17  $ (8) $ —  $ —  $ —  $ — 
Change in unrealized gains or losses for the period included in other comprehensive income for assets held at the end of the reporting period —  —  (69) —  (1) — 
(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
Nine months ended September 30, 2023
Opening balance $ 494  $ (2) $ 3,248  $ 20  $ 74  $ 16 
Transfers into Level 3 —  —  —  —  —  40 
Transfers out of Level 3 (1) —  (18) —  —  —  — 
Total gains/losses for the period:
Included in earnings:
Mortgage banking income 40  19  —  —  —  — 
Interest and fee income —  —  (2) (1) —  (3)
Included in OCI —  —  13  —  1  — 
Purchases/originations 49  —  715  1  —  — 
Settlements (36) —  (537) —  —  — 
Closing balance $ 547  $ (1) $ 3,437  $ 20  $ 75  $ 53 
Change in unrealized gains or losses for the period included in earnings for assets held at end of the reporting date $ 40  $ 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 —  —  2  —  —  — 
Nine months ended September 30, 2022
Opening balance $ 351  $ 4  $ 3,477  $ 20  $ 71  $ 19 
Transfers out of Level 3 (1) —  (6) —  —  —  — 
Total gains/losses for the period:
Included in earnings
Mortgage banking income 112  (7) —  —  —  — 
Interest and fee income —  —  (2) (2) —  — 
Provision for credit losses —  —  (4) —  —  — 
Included in OCI —  —  (274) —  (1) — 
Purchases/originations 68  —  867  4  26  — 
Repayments —  —  —  —  —  (3)
Settlements (45) —  (732) (1) (26) — 
Closing balance $ 486  $ (9) $ 3,332  $ 21  $ 70  $ 16 
Change in unrealized gains or losses for the period included in earnings for assets held at end of the reporting date $ 112  $ (17) $ —  $ —  $ —  $ — 
Change in unrealized gains or losses for the period included in other comprehensive income for assets held at the end of the reporting period —  —  (274) —  (1) — 
(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 September 30, 2023
Loans held for sale $ 601  $ 598  $ 3  $ —  $ —  $ — 
Loans held for investment 175  185  (10) 3  3  — 
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 September 30, Nine months ended September 30,
(dollar amounts in millions) 2023 2022 2023 2022
Loans held for sale (1) $ (4) $ (22) $ (4) $ (56)
Loans held for investment (2) —  (5) 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 September 30, Nine months ended September 30,
(dollar amounts in millions) At September 30, 2023 At December 31, 2022 2023 2022 2023 2022
Collateral-dependent loans $ 24  $ 16  $ 6  $ —  $ 13  $ (1)
Loans held for sale —  —  —  1  —  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 September 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 4  % - 33  % 7  % 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 September 30, 2023
Financial Assets
Cash and short-term assets $ 11,693  $ —  $ —  $ 11,693  $ 11,693 
Trading account securities —  —  121  121  121 
Available-for-sale securities —  —  21,863  21,863  21,863 
Held-to-maturity securities 16,148  —  —  16,148  13,309 
Other securities 688  —  30  718  718 
Loans held for sale —  2  601  603  603 
Net loans and leases (1) 118,470  —  175  118,645  114,540 
Derivative assets —  —  464  464  464 
Assets held in trust for deferred compensation plans —  —  161  161  161 
Financial Liabilities
Deposits 148,867  —  —  148,867  148,771 
Short-term borrowings 681  —  —  681  681 
Long-term debt 12,822  —  —  12,822  12,584 
Derivative liabilities —  —  1,077  1,077  1,077 
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 September 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 September 30, 2023
Financial Assets
Trading account securities $ 90  $ 31  $ —  $ 121 
Available-for-sale securities 5  18,326  3,532  21,863 
Held-to-maturity securities —  13,309  —  13,309 
Other securities (2) 29  1  —  30 
Loans held for sale —  603  —  603 
Net loans and leases —  122  114,418  114,540 
Derivative assets —  2,383  4  $ (1,923) 464 
Financial Liabilities
Deposits —  134,529  14,242  148,771 
Short-term borrowings —  681  —  681 
Long-term debt —  9,275  3,309  12,584 
Derivative liabilities —  2,232  5  (1,160) 1,077 
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.