FAIR VALUES OF ASSETS AND LIABILITIES (Tables)

6 Months Ended

Jun. 30, 2024

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, 2024
(dollar amounts in millions)	Level 1		Level 2		Level 3
Assets
Trading account securities:
U.S. Treasury securities	$	89	$	—	$	—	$	—	$	89


Municipal securities	—		44		—		—		44
Corporate debt	—		21		—		—		21
Total trading account securities	89		65		—		—		154
Available-for-sale securities:
U.S. Treasury securities	6,111		—		—		—		6,111
Residential CMO	—		2,992		—		—		2,992
Residential MBS	—		10,615		—		—		10,615
Commercial MBS	—		1,778		—		—		1,778
Other agencies	—		142		—		—		142
Municipal securities	—		37		3,341		—		3,378
Private-label CMO	—		92		20		—		112
Asset-backed securities	—		271		35		—		306
Corporate debt	—		2,010		—		—		2,010
Other securities/sovereign debt	—		10		—		—		10
Total available-for-sale securities	6,111		17,947		3,396		—		27,454
Other securities	30		2		—		—		32
Loans held for sale	—		659		—		—		659
Loans held for investment	—		115		60		—		175
MSRs	—		—		543		—		543
Other assets:
Derivative assets	—		1,637		4		(1,215)		426
Assets held in trust for deferred compensation plans	184		—		—		—		184
Liabilities

Long-term debt	—		480		—		—		480


Derivative liabilities	—		1,601		3		(884)		720


	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 June 30, 2024
Opening balance	$	534	$	4	$	3,293	$	20	$	72		$	58
Transfers into Level 3	—		—		—		—		—			4
Transfers out of Level 3 (1)	—		(6)		—		—		—			—
Total gains/losses for the period:
Included in earnings:
Mortgage banking income	12		4		—		—		—			—
Interest and fee income	—		—		(1)		—		—			(1)
Noninterest income	—		(6)		—		(1)		—			—
Provision for credit losses	—		—		(2)		—		—			—
Included in OCI	—		—		(33)		—		—			—
Purchases/originations	11		—		228		—		—			—

Repayments	—		—		—		—		—			(1)

Settlements	(14)		5		(144)		1		(37)			—
Closing balance	$	543	$	1	$	3,341	$	20	$	35		$	60
Change in unrealized gains or losses for the period included in earnings for assets held at end of the reporting date	$	12	$	(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	—		—		(34)		—		—			—
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		—		—		—			—


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)		—		—			—
(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, 2024
Opening balance	$	515	$	(2)	$	3,335	$	20	$	75	$	54
Transfers into Level 3	—		—		—		—		—		8
Transfers out of Level 3 (1)	—		(11)		—		—		—		—
Total gains/losses for the period:
Included in earnings:
Mortgage banking income	32		11		—		—		—		—
Interest and fee income	—		—		(1)		(1)		—		(1)
Noninterest income	—		(8)		—		—		—		—
Provision for credit losses	—		—		(2)		—		—		—
Included in OCI	—		—		(14)		—		—		—
Purchases/originations	21		—		300		—		—		—

Repayments	—		—		—		—		—		(1)

Settlements	(25)		11		(277)		1		(40)		—
Closing balance	$	543	$	1	$	3,341	$	20	$	35	$	60
Change in unrealized gains or losses for the period included in earnings for assets held at end of the reporting date	$	32	$	—	$	—	$	—	$	—	$	—
Change in unrealized gains or losses for the period included in other comprehensive income for assets held at the end of the reporting period	—		—		(16)		—		—		—
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)		—		—		—
(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 June 30, 2024
Assets
Loans held for sale	$	659	$	645	$	14	$	—	$	—	$	—
Loans held for investment	175		186		(11)		2		3		(1)
Liabilities
Long-term debt	480		478		(2)
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				Six Months Ended
(dollar amounts in millions)	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Loans held for sale (1)	$	4	$	—	$	(3)	$	—
Loans held for investment (1)	—		(3)		(1)		(3)
Long-term debt (2)	(2)		—		(2)		—

(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				Six Months Ended
(dollar amounts in millions)	At June 30, 2024		At December 31, 2023		June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023

Collateral-dependent loans	$	97	$	40	$	(16)	$	(1)	$	(41)	$	(7)

Quantitative information about significant unobservable level 3 fair value measurement inputs


	Quantitative Information about Level 3 Fair Value Measurements (1)
			At June 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	4	%	-	40	%	8	%	4	%	-	37	%	9	%
		Spread over forward interest rate swap rates	4	%	-	13	%	5	%	5	%	-	13	%	5	%






Municipal securities and asset-backed securities	Discounted cash flow	Discount rate	5	%	-	6	%	5	%	4	%	-	6	%	5	%
		Cumulative default	—	%	-	64	%	6	%	—	%	-	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 June 30, 2024
Financial Assets
Cash and short-term assets	$	12,783	$	—	$	—	$	12,783	$	12,783
Trading account securities	—		—		154		154		154
Available-for-sale securities	—		—		27,454		27,454		27,454
Held-to-maturity securities	15,036		—		—		15,036		12,730
Other securities	812		—		32		844		844
Loans held for sale	—		9		659		668		668
Net loans and leases (1)	121,943		—		175		122,118		118,794
Derivative assets	—		—		426		426		426
Assets held in trust for deferred compensation plans	—		—		184		184		184
Financial Liabilities
Deposits (2)	154,367		—		—		154,367		154,319
Short-term borrowings	187		—		—		187		187
Long-term debt	15,981		—		480		16,461		16,499
Derivative liabilities	—		—		720		720		720
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 $1.4 billion in time deposits in excess of the FDIC insurance coverage limit at both June 30, 2024 and December 31, 2023.

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 June 30, 2024
Financial Assets
Trading account securities	$	89	$	65	$	—	$	—	$	154
Available-for-sale securities	6,111		17,947		3,396		—		27,454
Held-to-maturity securities	—		12,730		—		—		12,730
Other securities (2)	30		2		—		—		32
Loans held for sale	—		659		9		—		668
Net loans and leases	—		115		118,679		—		118,794
Derivative assets	—		1,637		4		(1,215)		426
Financial Liabilities
Deposits	—		138,159		16,160		—		154,319
Short-term borrowings	—		187		—		—		187
Long-term debt	—		11,177		5,322		—		16,499
Derivative liabilities	—		1,601		3		(884)		720
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

(2)Excludes securities without readily determinable fair values.

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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