DERIVATIVE FINANCIAL INSTRUMENTS (Tables)
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12 Months Ended |
Dec. 31, 2023 |
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| Derivative Instruments and Hedging Activities Disclosure [Abstract] |
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| Asset and liability derivatives included in accrued income and other assets |
The following table presents the fair values and notional values of all derivative instruments included in the Consolidated Balance Sheets. Amounts in the table below are presented gross without the impact of any net collateral arrangements.
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At December 31, 2023 |
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At December 31, 2022 |
| (dollar amounts in millions) |
Notional Value |
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Asset |
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Liability |
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Notional Value |
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Asset |
|
Liability |
| Derivatives designated as Hedging Instruments |
| Interest rate contracts |
$ |
38,017 |
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$ |
868 |
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$ |
519 |
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$ |
42,461 |
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$ |
1,008 |
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$ |
1,145 |
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| Foreign exchange contracts |
222 |
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6 |
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— |
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202 |
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2 |
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— |
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| Derivatives not designated as Hedging Instruments |
| Interest rate contracts |
41,526 |
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718 |
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757 |
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37,562 |
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968 |
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1,008 |
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| Foreign exchange contracts |
5,257 |
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69 |
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76 |
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4,889 |
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68 |
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68 |
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Credit contracts |
381 |
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— |
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2 |
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— |
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— |
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— |
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| Commodities contracts |
681 |
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62 |
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60 |
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762 |
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114 |
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113 |
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| Equity contracts |
759 |
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— |
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7 |
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636 |
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4 |
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3 |
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| Total Contracts |
$ |
86,843 |
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$ |
1,723 |
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$ |
1,421 |
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$ |
86,512 |
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$ |
2,164 |
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$ |
2,337 |
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| Gains and (losses) recognized in other comprehensive income (loss) (OCI) for derivatives designated as effective cash flow hedges |
The following table presents the amount of gain or loss recognized in income for derivatives not designated as hedging instruments under ASC Subtopic 815-10 in the Consolidated Income Statement.
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Location of Gain or (Loss) Recognized in Income on Derivatives |
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Year Ended December 31, |
| (dollar amounts in millions) |
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2023 |
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2022 |
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2021 |
| Interest rate contracts: |
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| Customer |
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Capital markets fees |
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$ |
30 |
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$ |
47 |
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$ |
50 |
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| Mortgage banking |
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Mortgage banking income |
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(10) |
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(109) |
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(26) |
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| Interest rate floors |
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Interest and fee income on loans and leases |
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— |
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— |
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(8) |
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| Interest rate caps |
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Interest expense on long-term debt |
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— |
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— |
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89 |
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Interest rate swaptions |
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Other noninterest income |
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(24) |
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— |
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— |
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| Foreign exchange contracts |
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Capital markets fees |
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45 |
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45 |
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32 |
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| Credit contracts |
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Other noninterest income |
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(2) |
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— |
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— |
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| Commodities contracts |
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Capital markets fees |
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5 |
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5 |
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3 |
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| Equity contracts |
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Other noninterest expense |
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(13) |
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(9) |
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(8) |
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| Total |
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$ |
31 |
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$ |
(21) |
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$ |
132 |
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| Gross notional values of derivatives used in asset and liability management activities |
The following table presents the gross notional values of derivatives used in Huntington’s asset and liability management activities, identified by the underlying interest rate-sensitive instruments:
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At December 31, 2023 |
| (dollar amounts in millions) |
Fair Value Hedges |
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Cash Flow Hedges |
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Economic Hedges |
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Total |
| Instruments associated with: |
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| Investment securities |
$ |
11,649 |
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$ |
— |
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$ |
— |
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$ |
11,649 |
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| Loans |
— |
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16,675 |
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175 |
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16,850 |
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| Long-term debt |
9,693 |
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— |
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— |
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9,693 |
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| Total notional value |
$ |
21,342 |
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$ |
16,675 |
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$ |
175 |
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$ |
38,192 |
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At December 31, 2022 |
| (dollar amounts in millions) |
Fair Value Hedges |
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Cash Flow Hedges |
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Economic Hedges |
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Total |
| Instruments associated with: |
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| Investment securities |
$ |
10,407 |
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$ |
— |
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$ |
— |
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$ |
10,407 |
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| Loans |
— |
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24,325 |
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175 |
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24,500 |
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| Long-term debt |
7,729 |
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— |
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— |
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7,729 |
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| Total notional value |
$ |
18,136 |
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$ |
24,325 |
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$ |
175 |
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$ |
42,636 |
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| Increase or (decrease) to interest expense for derivatives designated as fair value hedges |
The following table presents the change in fair value for derivatives designated as fair value hedges as well as the offsetting change in fair value on the hedged item.
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| |
Year Ended December 31, |
| (dollar amounts in millions) |
2023 |
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2022 |
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2021 |
| Interest rate contracts |
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| Change in fair value of interest rate swaps hedging investment securities (1) |
$ |
(284) |
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$ |
875 |
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$ |
108 |
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| Change in fair value of hedged investment securities (1) |
282 |
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(862) |
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(114) |
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| Change in fair value of interest rate swaps hedging long-term debt (2) |
141 |
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(300) |
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(184) |
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| Change in fair value of hedged long term debt (2) |
(141) |
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300 |
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187 |
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| Amounts recorded on the balance sheet related to cumulative basis adjustments |
The following amounts were recorded on the balance sheet related to cumulative basis adjustments for fair value hedges.
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Amortized Cost |
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Cumulative Amount of Fair Value Hedging Adjustment To Hedged Items |
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At December 31, |
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At December 31, |
| (dollar amounts in millions) |
2023 |
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2022 |
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2023 |
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2022 |
| Assets |
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| Investment securities (1) |
$ |
18,241 |
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$ |
18,029 |
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$ |
(698) |
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$ |
(979) |
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| Liabilities |
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| Long-term debt (2) |
9,909 |
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7,175 |
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(115) |
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(256) |
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(1)Amounts include the amortized cost basis of closed portfolios used to designate hedging relationships under the portfolio layer method. The hedged item is a layer of the closed portfolio which is expected to be remaining at the end of the hedging relationship. As of December 31, 2023, the amortized cost basis of the closed portfolios used in these hedging relationships was $17.6 billion, the cumulative basis adjustments associated with these hedging relationships was $619 million, and the notional amounts of the designated hedging instruments were $11.0 billion.
(2)Excluded from the above table are the cumulative amount of fair value hedge adjustments remaining for long-term debt for which hedge accounting has been discontinued in the amounts of $(69) million at December 31, 2023 and $(70) million at December 31, 2022.
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| MSR Derivative Hedging |
The notional value of the derivative financial instruments, the corresponding trading assets and liabilities positions, and net trading gains (losses) related to MSR hedging activity is summarized in the following tables:
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At December 31, |
| (dollar amounts in millions) |
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2023 |
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2022 |
| Notional value |
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$ |
1,668 |
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$ |
1,120 |
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| Trading assets |
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— |
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4 |
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| Trading liabilities |
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(69) |
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(78) |
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Year December 31, |
| (dollar amounts in millions) |
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2023 |
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2022 |
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2021 |
| Trading (losses) gains |
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$ |
(10) |
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$ |
(109) |
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$ |
(26) |
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| Offsetting of financial assets and derivatives assets |
The following tables present the gross amounts of these assets and liabilities with any offsets to arrive at the net amounts recognized in the Consolidated Balance Sheets.
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| Offsetting of Financial Assets and Derivative Assets |
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Gross amounts
offset in the
consolidated
balance sheets
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Net amounts of
assets
presented in
the
consolidated
balance sheets
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Gross amounts not offset in the consolidated balance sheets |
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| (dollar amounts in millions) |
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Gross amounts
of recognized
assets
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Financial
instruments
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Cash collateral
received
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Net amount |
| At December 31, 2023 |
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$ |
1,723 |
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$ |
(1,330) |
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$ |
393 |
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$ |
(45) |
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$ |
(4) |
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$ |
344 |
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| At December 31, 2022 |
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2,164 |
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(1,808) |
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356 |
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(7) |
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(56) |
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293 |
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| Offsetting of financial liabilities and derivative liabilities |
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| Offsetting of Financial Liabilities and Derivative Liabilities |
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Gross amounts
offset in the
consolidated
balance sheets
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Net amounts of
liabilities
presented in
the
consolidated
balance sheets
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Gross amounts not offset in the consolidated balance sheets |
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| (dollar amounts in millions) |
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Gross amounts
of recognized
liabilities
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Financial
instruments
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Cash collateral
delivered
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Net amount |
| At December 31, 2023 |
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$ |
1,421 |
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$ |
(751) |
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$ |
670 |
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$ |
— |
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$ |
(93) |
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$ |
577 |
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| At December 31, 2022 |
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2,337 |
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(1,345) |
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|
992 |
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(79) |
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(118) |
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795 |
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