Company: HBAN
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0000049196-25-000079
Chunk: 228

Company: HUNTINGTON BANCSHARES INC /MD/
Filing Date: 2025-10-28
Form: 10-Q
Item: Part I, Item 8
Chunk 228
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 30, 2024Interest rate contractsChange in fair value of interest rate swaps hedging investment securities (1)$(40)$(295)$(302)$(263)Change in fair value of hedged investment securities (1)38 293 299 259 Change in fair value of interest rate swaps hedging long-term debt (2)16 301 231 142 Change in fair value of hedged long-term debt (2)(16)(302)(231)(143)(1)Recognized in Interest income—available-for-sale securities—taxable in the Unaudited Consolidated Statements of Income.(2)Recognized in Interest expense—long-term debt in the Unaudited Consolidated Statements of Income.

2025 3Q Form 10-Q     79

The following amounts were recorded on the balance sheet related to cumulative basis adjustments for fair value hedges.Amortized CostCumulative Amount of Fair Value Hedging Adjustment To Hedged Items(dollar amounts in millions)At September 30, 2025At December 31, 2024At September 30, 2025At December 31, 2024AssetsAvailable-for-sale securities (1)$8,478 $16,390 $(160)$(458)LiabilitiesLong-term debt (2)11,074 11,589 8 (223)(1)Amounts represent 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 that is expected to be remaining at the end of the hedging relationship. (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 $(46) million at September 30, 2025 and $(56) million at December 31, 2024.Cash Flow HedgesAt September 30, 2025, Huntington had $26.3 billion of interest rate swaps and floors that are designated as cash flow hedges for variable-rate commercial loans. The change in the fair value of a derivative instrument designated as a cash flow hedge is initially recognized in OCI and is reclassified into income when the hedged item impacts earnings. The initial premium paid for the interest rate floor contracts represents the time value of the contracts and is not included in the measurement of hedge effectiveness. The initial premium paid is amortized on a straight-line basis as a reduction to interest