XML 46 R34.htm IDEA: XBRL DOCUMENT v3.20.2
FAIR VALUES OF ASSETS AND LIABILITIES (Tables)
 9 Months Ended
Sep. 30, 2020
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
Assets and liabilities measured at fair value on a recurring basis at September 30, 2020 and December 31, 2019 are summarized below:
Fair Value Measurements at Reporting Date UsingNetting Adjustments (1)September 30, 2020
(dollar amounts in millions)Level 1Level 2Level 3
Assets
Trading account securities:
Municipal securities$— $54 $— $— $54 
Available-for-sale securities:
U.S. Treasury securities5 — — — 5 
Residential CMOs— 4,498 — — 4,498 
Residential MBS— 5,761 — — 5,761 
Commercial MBS— 807 — — 807 
Other agencies— 114 — — 114 
Municipal securities— 55 3,089 — 3,144 
Private-label CMO— — 5 — 5 
Asset-backed securities— 154 49 — 203 
Corporate debt— 266 — — 266 
Other securities/sovereign debt— 4 — — 4 
5 11,659 3,143 — 14,807 
Other securities58 — — — 58 
Loans held for sale— 1,118 — — 1,118 
Loans held for investment— 68 24 — 92 
MSRs— — 191 — 191 
Derivative assets— 2,093 50 (1,055)1,088 
Liabilities
Derivative liabilities— 1,170 2 (1,062)110 
Fair Value Measurements at Reporting Date Using
Netting Adjustments (1)
December 31, 2019
(dollar amounts in millions)
Level 1
Level 2
Level 3
Assets
Trading account securities:
Federal agencies: Other agencies$— $4 $— $— $4 
Municipal securities— 63 — — 63 
Other securities30 2 — — 32 
30 69 — — 99 
Available-for-sale securities:
U.S. Treasury securities10 — — — 10 
Residential CMOs— 5,085 — — 5,085 
Residential MBS— 4,222 — — 4,222 
Commercial MBS— 976 — — 976 
Other agencies— 165 — — 165 
Municipal securities— 56 2,999 — 3,055 
Private-label CMO— — 2 — 2 
Asset-backed securities— 531 48 — 579 
Corporate debt— 51 — — 51 
Other securities/sovereign debt— 4 — — 4 
10 11,090 3,049 — 14,149 
Other securities54 — — — 54 
Loans held for sale— 781 — — 781 
Loans held for investment— 55 26 — 81 
MSRs— — 7 — 7 
Derivative assets— 848 8 (404)452 
Liabilities
Derivative liabilities— 519 2 (417)104 
(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 tables below present a rollforward of the balance sheet amounts for the three-month and nine-month periods ended September 30, 2020 and 2019, for financial instruments measured 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
Three Months Ended September 30, 2020
Available-for-sale securitiesLoans held for investment
(dollar amounts in millions)MSRs
Derivative
instruments
Municipal
securities
Private-
label CMO
Asset-backed
securities
Opening balance$172 $40 $3,102 $5 $56 $25 
Transfers out of Level 3 (1)— (64)— — — — 
Total gains/losses for the period:
Included in earnings19 72 (1)— — — 
Included in OCI— — 60 — — — 
Purchases/originations— — 154 — — — 
Repayments— — — — — (1)
Settlements— — (226)— (7)— 
Closing balance$191 $48 $3,089 $5 $49 $24 
Change in unrealized gains or losses for the period included in earnings for assets held at end of the reporting date$18 $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— — 62 — — — 
Level 3 Fair Value Measurements
Three Months Ended September 30, 2019
MSRs
Derivative
instruments
Available-for-sale securitiesLoans held for investment
(dollar amounts in millions)
Municipal
securities
Asset-backed
securities
Opening balance$9 $9 $3,202 $— $28 
Transfers out of Level 3 (1)— (20)— — — 
Total gains/losses for the period:
Included in earnings(1)19 (1)— — 
Included in OCI— — 24 — — 
Purchases/originations— — 28 55 — 
Repayments— — — — (1)
Settlements— — (159)— — 
Closing balance$8 $8 $3,094 $55 $27 
Change in unrealized gains or losses for the period included in earnings for assets held at end of the reporting date$(1)$(1)$— $— $— 
Change in unrealized gains or losses for the period included in other comprehensive income for assets held at the end of the reporting period$— $— 23 $— 
Level 3 Fair Value Measurements
Nine Months Ended September 30, 2020
Available-for-sale securities
Loans held for investment
(dollar amounts in millions)
MSRs
Derivative
instruments
Municipal
securities
Private- label CMO
Asset-backed
securities
Opening balance$7 $6 $2,999 $2 $48 $26 
Fair value election for servicing assets previously measured using the amortized method205 — — — — — 
Transfers out of Level 3 (1)— (139)— — — — 
Total gains/losses for the period:
Included in earnings(21)181 (2)— — — 
Included in OCI— — 61 — — — 
Purchases/originations— — 491 3 28 — 
Repayments— — — — — (2)
Settlements— — (460)— (27)— 
Closing balance$191 $48 $3,089 $5 $49 $24 
Change in unrealized gains or losses for the period included in earnings for assets held at end of the reporting date$(22)$42 $— $— $— $— 
Change in unrealized gains or losses for the period included in other comprehensive income for assets held at the end of the reporting period— — 64 — — — 
Level 3 Fair Value Measurements
Nine Months Ended September 30, 2019
Available-for-sale securities
Loans held for investment
(dollar amounts in millions)
MSRs
Derivative
instruments
Municipal
securities
Asset-
backed
securities
Opening balance$10 $2 $3,165 $— $30 
Transfers out of Level 3 (1)— (44)— — — 
Total gains/losses for the period:
Included in earnings(2)50 (1)— — 
Included in OCI— — 70 — — 
Purchases/originations— — 136 55 — 
Repayments— — — — (3)
Settlements— — (276)— — 
Closing balance$8 $8 $3,094 $55 $27 
Change in unrealized gains or losses for the period included in earnings for assets held at end of the reporting date$(2)$6 $— $— $— 
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 — 
(1)    Transfers out of Level 3 represent the settlement value of the derivative instruments (i.e. interest rate lock agreements) that is transferred to loans held for sale, which is classified as Level 2.
Classification of gains and losses due to changes in fair value, recorded in earnings for Level 3 assets and liabilities
The tables below summarize the classification of gains and losses due to changes in fair value, recorded in earnings for Level 3 assets and liabilities for the three-month and nine-month periods ended September 30, 2020 and 2019:
Level 3 Fair Value Measurements
Three Months Ended September 30, 2020
Available-for-sale securities
(dollar amounts in millions)MSRs
Derivative
instruments
Municipal
securities
Classification of gains and losses in earnings:
Mortgage banking income$19 $72 $— 
Interest and fee income— — (1)
Total$19 $72 $(1)
Level 3 Fair Value Measurements
Three Months Ended September 30, 2019
Available-for-sale securities
(dollar amounts in millions)MSRs
Derivative
instruments
Municipal
securities
Classification of gains and losses in earnings:
Mortgage banking income$(1)$19 $— 
Interest and fee income— — (1)
Total$(1)$19 $(1)
Level 3 Fair Value Measurements
Nine Months Ended September 30, 2020
Available-for-sale securities
(dollar amounts in millions)MSRs
Derivative
instruments
Municipal
securities
Classification of gains and losses in earnings:
Mortgage banking income$(21)$181 $— 
Interest and fee income— — (2)
Total$(21)$181 $(2)
Level 3 Fair Value Measurements
Nine Months Ended September 30, 2019
Available-for-sale securities
(dollar amounts in millions)MSRs
Derivative
instruments
Municipal
securities
Classification of gains and losses in earnings:
Mortgage banking income$(2)$50 $— 
Interest and fee income— — (1)
Total$(2)$50 $(1)
Assets and liabilities under the fair value option
The following tables present the fair value and aggregate principal balance of certain assets and liabilities under the fair value option:
September 30, 2020
(dollar amounts in millions)Total LoansLoans that are 90 or more days past due
Assets
Fair value
carrying
amount
Aggregate
unpaid
principal
Difference
Fair value
carrying
amount
Aggregate
unpaid
principal
Difference
Loans held for sale$1,118 $1,057 $61 $1 $1 $— 
Loans held for investment92 97 (5)5 5 — 
December 31, 2019
(dollar amounts in millions)Total LoansLoans that are 90 or more days past due
Assets
Fair value
carrying
amount
Aggregate
unpaid
principal
Difference
Fair value
carrying
amount
Aggregate
unpaid
principal
Difference
Loans held for sale$781 $755 $26 $2 $2 $— 
Loans held for investment81 87 (6)3 4 (1)
The following tables present the net gains (losses) from fair value changes for the three-month and nine-month periods ended September 30, 2020 and 2019.
Net gains (losses) from fair value changesNet gains (losses) from fair value changes
(dollar amounts in millions)Three Months Ended September 30,Nine Months Ended September 30,
Assets2020201920202019
Loans held for sale (1)$13 $6 $35 $12 
(1)The net gains (losses) from fair value changes are included in Mortgage banking income on the Unaudited Condensed Consolidated Statements of Income.
Assets measured at fair value on a nonrecurring basis
The amounts measured at fair value on a nonrecurring basis at September 30, 2020 were as follows:
Fair Value Measurements Using
(dollar amounts in millions)Fair Value
Quoted Prices
In Active
Markets for
Identical Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Other
Unobservable
Inputs
(Level 3)
Total
Gains/(Losses)
Nine Months Ended
September 30, 2020
Collateral-dependent loans124 — — 124 (39)
Loans held for sale107 — — 107 (58)
Quantitative information about significant unobservable level 3 fair value measurement inputs
Quantitative Information about Level 3 Fair Value Measurements at September 30, 2020 (1)
(dollar amounts in millions)Fair ValueValuation TechniqueSignificant Unobservable InputRange Weighted Average
Measured at fair value on a recurring basis:
MSRs$191 Discounted cash flowConstant prepayment rate9 %-23%16 %
Spread over forward interest rate swap rates5 %-11%8 %
Derivative assets50 Consensus PricingNet market price(1)%-13%4 %
Estimated Pull through %4 %-100%88 %
Municipal securities3,089 Discounted cash flowDiscount rate— %-8%3 %
Asset-backed securities49 Cumulative default0 %-39%4 %
Loss given default5 %-80%24 %
Measured at fair value on a nonrecurring basis:
Collateral-dependent loans124 Appraisal valueNANA

Quantitative Information about Level 3 Fair Value Measurements at December 31, 2019 (1)
(dollar amounts in millions)Fair ValueValuation TechniqueSignificant Unobservable InputRangeWeighted Average
Measured at fair value on a recurring basis:
MSRs$7 Discounted cash flowConstant prepayment rate— %-26%8 %
Spread over forward interest rate swap rates5 %-11%8 %
Derivative assets8 Consensus PricingNet market price(2)%-11%2 %
Estimated Pull through %2 %-100%91 %
Municipal securities2,999 Discounted cash flowDiscount rate2 %-3%2 %
Asset-backed securities48 Cumulative default— %-39%4 %
Loss given default5 %-80%24 %
Measured at fair value on a nonrecurring basis:
MSRs206 Discounted cash flowConstant prepayment rate10 %-31%12 %
Spread over forward interest rate swap rates5 %-11%9 %
Impaired loans26 Appraisal valueNANA
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 at September 30, 2020 and December 31, 2019:
September 30, 2020
(dollar amounts in millions)Amortized CostLower of Cost or Market
Fair Value or
Fair Value Option
Total Carrying AmountEstimated Fair Value
Financial Assets
Cash and short-term assets$6,384 $— $— $6,384 $6,384 
Trading account securities— — 54 54 54 
Available-for-sale securities— — 14,807 14,807 14,807 
Held-to-maturity securities8,557 — — 8,557 8,970 
Other securities363 — 58 421 421 
Loans held for sale— 185 1,118 1,303 1,308 
Net loans and leases (1)79,268 — 92 79,360 80,490 
Derivative assets— — 1,088 1,088 1,088 
Financial Liabilities
Deposits95,154 — — 95,154 95,350 
Short-term borrowings222 — — 222 222 
Long-term debt9,174 — — 9,174 9,440 
Derivative liabilities— — 110 110 110 
December 31, 2019
(dollar amounts in millions)Amortized CostLower of Cost or Market
Fair Value or
Fair Value Option
Total Carrying AmountEstimated Fair Value
Financial Assets
Cash and short-term assets$1,272 $— $— $1,272 $1,272 
Trading account securities— — 99 99 99 
Available-for-sale securities— — 14,149 14,149 14,149 
Held-to-maturity securities9,070 — — 9,070 9,186 
Other securities387 — 54 441 441 
Loans held for sale— 96 781 877 879 
Net loans and leases (1)74,540 — 81 74,621 75,177 
Derivative assets— — 452 452 452 
Financial Liabilities
Deposits82,347 — — 82,347 82,344 
Short-term borrowings2,606 — — 2,606 2,606 
Long-term debt9,849 — — 9,849 10,075 
Derivative liabilities— — 104 104 104 
(1)Includes collateral-dependent loans.
The following table presents the level in the fair value hierarchy for the estimated fair values at September 30, 2020 and December 31, 2019:
Estimated Fair Value Measurements at Reporting Date UsingNetting Adjustments (1) September 30, 2020
(dollar amounts in millions)Level 1Level 2Level 3
Financial Assets
Trading account securities$— $54 $— $54 
Available-for-sale securities5 11,659 3,143 14,807 
Held-to-maturity securities— 8,970 — 8,970 
Other securities (2)58 — — 58 
Loans held for sale— 1,118 190 1,308 
Net loans and direct financing leases— 68 80,422 80,490 
Derivative assets— 2,093 50 $(1,055)1,088 
Financial Liabilities
Deposits— 92,779 2,571 95,350 
Short-term borrowings— — 222 222 
Long-term debt— 8,877 563 9,440 
Derivative liabilities— 1,170 2 (1,062)110 
Estimated Fair Value Measurements at Reporting Date UsingNetting Adjustments (1)December 31, 2019
(dollar amounts in millions)Level 1Level 2Level 3
Financial Assets
Trading account securities$30 $69 $— $99 
Available-for-sale securities10 11,090 3,049 14,149 
Held-to-maturity securities— 9,186 — 9,186 
Other securities (2)54 — — 54 
Loans held for sale— 781 98 879 
Net loans and direct financing leases— 55 75,122 75,177 
Derivative assets— 848 8 $(404)452 
Financial Liabilities
Deposits— 76,790 5,554 82,344 
Short-term borrowings— — 2,606 2,606 
Long-term debt— 9,439 636 10,075 
Derivative liabilities— 519 2 (417)104