Quarterly report pursuant to Section 13 or 15(d)

FAIR VALUES OF ASSETS AND LIABILITIES (Tables)

v3.24.3
FAIR VALUES OF ASSETS AND LIABILITIES (Tables)
 9 Months Ended
Sep. 30, 2024
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, 2024
(dollar amounts in millions) Level 1 Level 2 Level 3
Assets
Trading account securities:
U.S. Treasury securities $ 427  $ —  $ —  $ —  $ 427 
Other agencies —  1  —  —  1 
Municipal securities —  35  —  —  35 
Corporate debt —  9  —  —  9 
Total trading account securities
 427  45  —  —  472 
Available-for-sale securities:
U.S. Treasury securities 6,530  —  —  —  6,530 
Residential CMO —  3,022  —  —  3,022 
Residential MBS —  10,785  —  —  10,785 
Commercial MBS —  1,870  —  —  1,870 
Other agencies —  136  —  —  136 
Municipal securities —  37  3,611  —  3,648 
Private-label CMO —  92  22  —  114 
Asset-backed securities —  272  34  —  306 
Corporate debt —  2,071  —  —  2,071 
Other securities/sovereign debt —  10  —  —  10 
Total available-for-sale securities
 6,530  18,295  3,667  —  28,492 
Other securities 31  1  —  —  32 
Loans held for sale —  649  —  —  649 
Loans held for investment —  115  60  —  175 
MSRs —  —  515  —  515 
Other assets:
Derivative assets —  1,358  5  (888) 475 
Assets held in trust for deferred compensation plans 191  —  —  —  191 
Liabilities
Long-term debt —  416  —  —  416 
Derivative liabilities —  870  14  (492) 392 
Fair Value Measurements at Reporting Date Using
Netting Adjustments (1)
 At December 31, 2023
(dollar amounts in millions)
Level 1
Level 2
Level 3
Assets
Trading account securities:
U.S. Treasury securities $ 91  $ —  $ —  $ —  $ 91 
Other agencies —  2  —  —  2 
Municipal securities —  32  —  —  32 
Total trading account securities 91  34  —  —  125 
Available-for-sale securities:
U.S. Treasury securities 2,856  —  —  —  2,856 
Residential CMOs —  3,184  —  —  3,184 
Residential MBS —  11,382  —  —  11,382 
Commercial MBS —  1,827  —  —  1,827 
Other agencies —  155  —  —  155 
Municipal securities —  38  3,335  —  3,373 
Private-label CMO —  99  20  —  119 
Asset-backed securities —  281  75  —  356 
Corporate debt —  2,043  —  —  2,043 
Other securities/sovereign debt —  10  —  —  10 
Total available-for-sale securities 2,856  19,019  3,430  —  25,305 
Other securities 30  2  —  —  32 
Loans held for sale —  506  —  —  506 
Loans held for investment —  120  54  —  174 
MSRs —  —  515  —  515 
Other assets:
Derivative assets —  1,720  3  (1,330) 393 
Assets held in trust for deferred compensation plans 177  —  —  —  177 
Liabilities
Derivative liabilities —  1,416  5  (751) 670 
(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, 2024
Opening balance $ 543  $ 1  $ 3,341  $ 20  $ 35  $ 60 
Transfers into Level 3 —  —  —  —  —  3 
Transfers out of Level 3 (1) —  (8) —  —  —  — 
Total gains/losses for the period:
Included in earnings:
Mortgage banking income (25) 10  —  —  —  — 
Other noninterest income —  (16) —  —  —  — 
Included in OCI —  —  70  —  —  — 
Purchases/originations 12  —  390  —  —  — 
Repayments —  —  —  —  —  (3)
Settlements (15) 4  (190) 2  (1) — 
Closing balance $ 515  $ (9) $ 3,611  $ 22  $ 34  $ 60 
Change in unrealized gains or losses for the period included in earnings for assets held at end of the reporting date $ (25) $ 2  $ —  $ —  $ —  $ — 
Change in unrealized gains or losses for the period included in other comprehensive income for assets held at the end of the reporting period —  —  68  —  —  — 
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  —  —  — 
(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, 2024
Opening balance $ 515  $ (2) $ 3,335  $ 20  $ 75  $ 54 
Transfers into Level 3 —  —  —  —  —  11 
Transfers out of Level 3 (1) —  (19) —  —  —  — 
Total gains/losses for the period:
Included in earnings:
Mortgage banking income 7  21  —  —  —  — 
Interest and fee income —  —  (1) (1) —  (1)
Other noninterest income —  (24) —  —  —  — 
Provision for credit losses —  —  (2) —  —  — 
Included in OCI —  —  56  —  —  — 
Purchases/originations 33  —  690  —  —  — 
Repayments —  —  —  —  —  (4)
Settlements (40) 15  (467) 3  (41) — 
Closing balance $ 515  $ (9) $ 3,611  $ 22  $ 34  $ 60 
Change in unrealized gains or losses for the period included in earnings for assets held at end of the reporting date $ 7  $ 2  $ —  $ —  $ —  $ — 
Change in unrealized gains or losses for the period included in other comprehensive income for assets held at the end of the reporting period —  —  52  —  —  — 
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  —  —  — 
(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 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, 2024
Assets
Loans held for sale $ 649  $ 630  $ 19  $ —  $ —  $ — 
Loans held for investment 175  186  (11) 3  4  (1)
Liabilities
Long-term debt 416  411  (5)
At December 31, 2023
Assets
Loans held for sale $ 506  $ 489  $ 17  $ —  $ —  $ — 
Loans held for investment 174  184  (10) 2  3  (1)
The following table presents the net gains (losses) from fair value changes:
Three Months Ended Nine Months Ended
(dollar amounts in millions) September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023
Loans held for sale (1) $ 5  $ (4) $ 2  $ (4)
Loans held for investment (1)
 —  (2) (1) (5)
Long-term debt (2)
 (3) —  (5) — 
(1)The net gains (losses) from fair value changes are included in mortgage banking income on the Unaudited Consolidated Statements of Income.
(2)The net gains (losses) from fair value changes are included in other noninterest 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 Unobservable Inputs (Level 3) Total Losses
Three Months Ended Nine Months Ended
(dollar amounts in millions) At September 30, 2024 At December 31, 2023 September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023
Collateral-dependent loans $ 162  $ 40  $ (4) $ (6) $ (45) $ (13)
Quantitative Information About Significant Unobservable Kevel 3 Fair Value Measurement Inputs
Quantitative Information about Level 3 Fair Value Measurements (1)
At September 30, 2024
At December 31, 2023
(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 7  % - 41  % 9  % 4  % - 37  % 9  %
Spread over forward interest rate swap rates 5  % - 10  % 6  % 5  % - 13  % 5  %
Municipal securities and asset-backed securities Discounted cash flow Discount rate 4  % - 5  % 4  % 4  % - 6  % 5  %
Cumulative default —  % - 39  % 5  % —  % - 64  % 6  %
Loss given default 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, 2024
Financial Assets
Cash and short-term assets $ 12,840  $ —  $ —  $ 12,840  $ 12,840 
Trading account securities —  —  472  472  472 
Available-for-sale securities —  —  28,492  28,492  28,492 
Held-to-maturity securities 15,670  —  —  15,670  13,933 
Other securities 794  —  32  826  826 
Loans held for sale —  6  649  655  655 
Net loans and leases (1) 123,977  —  175  124,152  122,872 
Derivative assets —  —  475  475  475 
Assets held in trust for deferred compensation plans —  —  191  191  191 
Financial Liabilities
Deposits (2) 158,351  —  —  158,351  158,344 
Short-term borrowings 868  —  —  868  868 
Long-term debt 15,240  —  416  15,656  15,819 
Derivative liabilities —  —  392  392  392 
At December 31, 2023
Financial Assets
Cash and short-term assets $ 10,323  $ —  $ —  $ 10,323  $ 10,323 
Trading account securities —  —  125  125  125 
Available-for-sale securities —  —  25,305  25,305  25,305 
Held-to-maturity securities 15,750  —  —  15,750  13,718 
Other securities 693  —  32  725  725 
Loans held for sale —  10  506  516  516 
Net loans and leases (1) 119,553  —  174  119,727  116,781 
Derivative assets —  —  393  393  393 
Assets held in trust for deferred compensation plans —  —  177  177  177 
Financial Liabilities
Deposits (2) 151,230  —  —  151,230  151,183 
Short-term borrowings 620  —  —  620  620 
Long-term debt 12,394  —  —  12,394  12,276 
Derivative liabilities —  —  670  670  670 
(1)Includes collateral-dependent loans.
(2)Includes $1.5 billion and $1.4 billion in time deposits in excess of the FDIC insurance coverage limit at September 30, 2024 and December 31, 2023, respectively.
The following table presents the level in the fair value hierarchy for the estimated fair values.
Estimated Fair Value Measurements at Reporting Date Using Netting Adjustments (1) 
Estimated Fair Value
(dollar amounts in millions) Level 1 Level 2 Level 3
At September 30, 2024
Financial Assets
Trading account securities $ 427  $ 45  $ —  $ —  $ 472 
Available-for-sale securities 6,530  18,295  3,667  —  28,492 
Held-to-maturity securities 997  12,936  —  —  13,933 
Other securities (2) 31  1  —  —  32 
Loans held for sale —  649  6  —  655 
Net loans and leases —  115  122,757  —  122,872 
Derivative assets —  1,358  5  (888) 475 
Financial Liabilities
Deposits —  141,391  16,953  —  158,344 
Short-term borrowings —  868  —  —  868 
Long-term debt —  10,425  5,394  —  15,819 
Derivative liabilities —  870  14  (492) 392 
At December 31, 2023
Financial Assets
Trading account securities $ 91  $ 34  $ —  $ —  $ 125 
Available-for-sale securities 2,856  19,019  3,430  —  25,305 
Held-to-maturity securities —  13,718  —  —  13,718 
Other securities (2) 30  2  —  —  32 
Loans held for sale —  506  10  —  516 
Net loans and leases —  120  116,661  —  116,781 
Derivative assets —  1,720  3  (1,330) 393 
Financial Liabilities
Deposits —  135,627  15,556  —  151,183 
Short-term borrowings —  620  —  —  620 
Long-term debt —  8,929  3,347  —  12,276 
Derivative liabilities —  1,416  5  (751) 670 
(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.