Quarterly report pursuant to Section 13 or 15(d)

AVAILABLE-FOR-SALE SECURITIES

v3.10.0.1
AVAILABLE-FOR-SALE SECURITIES
6 Months Ended
Jun. 30, 2018
Investments, Debt and Equity Securities [Abstract]  
AVAILABLE-FOR-SALE AND OTHER SECURITIES
AVAILABLE-FOR-SALE SECURITIES
Contractual maturities of available-for-sale securities at June 30, 2018 and December 31, 2017 were:
 
June 30, 2018
 
December 31, 2017
(dollar amounts in millions)
Amortized
Cost
 
Fair Value
 
Amortized
Cost
 
Fair Value
U.S. Treasury, Federal agency, and other agency securities:
 
 
 
 
 
 
 
U.S. Treasury:
 
 
 
 
 
 
 
1 year or less
$
6

 
$
6

 
$
5

 
$
5

Total U.S. Treasury
6

 
6

 
5

 
5

Federal agencies:
 
 
 
 
 
 
 
Residential CMO:
 
 
 
 
 
 
 
After 1 year through 5 years

 

 
1

 
1

After 5 years through 10 years
44

 
42

 
90

 
89

After 10 years
7,510

 
7,208

 
6,570

 
6,394

Total Residential CMO
7,554

 
7,250

 
6,661

 
6,484

Residential MBS:
 
 
 
 
 
 
 
After 1 year through 5 years
4

 
4

 
6

 
6

After 5 years through 10 years
31

 
30

 
7

 
8

After 10 years
643

 
625

 
1,358

 
1,353

Total Residential MBS
678

 
659

 
1,371

 
1,367

Commercial MBS:
 
 
 
 
 
 
 
After 1 year through 5 years
69

 
66

 
23

 
22

After 5 years through 10 years
9

 
8

 
151

 
148

After 10 years
1,737

 
1,669

 
2,365

 
2,317

Total Commercial MBS
1,815

 
1,743

 
2,539

 
2,487

Other agencies:
 
 
 
 
 
 
 
1 year or less
1

 
1

 
2

 
2

After 1 year through 5 years
8

 
8

 
9

 
9

After 5 years through 10 years
179

 
174

 
58

 
59

Total other agencies
188

 
183

 
69

 
70

Total U.S. Treasury, Federal agency, and other agency securities
10,241

 
9,841

 
10,645

 
10,413

Municipal securities:
 
 
 
 
 
 
 
1 year or less
164

 
164

 
103

 
103

After 1 year through 5 years
1,115

 
1,105

 
1,140

 
1,134

After 5 years through 10 years
1,702

 
1,674

 
1,709

 
1,704

After 10 years
845

 
822

 
940

 
937

Total municipal securities
3,826

 
3,765

 
3,892

 
3,878

Asset-backed securities:
 
 
 
 
 
 
 
After 1 year through 5 years
40

 
39

 
80

 
80

After 5 years through 10 years
46

 
46

 
53

 
54

After 10 years
295

 
288

 
349

 
333

Total asset-backed securities
381

 
373

 
482

 
467

Corporate debt:
 
 
 
 
 
 
 
1 year or less
1

 
1

 

 

After 1 year through 5 years
75

 
74

 
73

 
74

After 5 years through 10 years
11

 
12

 
20

 
21

After 10 years

 

 
13

 
14

Total corporate debt
87

 
87

 
106

 
109

Other securities/Sovereign debt:
 
 
 
 
 
 
 
1 year or less

 

 
1

 
1

After 1 year through 5 years
4

 
4

 
1

 
1

Total other securities/Sovereign debt
4

 
4

 
2

 
2

Total available-for-sale securities
$
14,539


$
14,070


$
15,127


$
14,869


The following tables provide amortized cost, fair value, and gross unrealized gains and losses recognized in OCI by investment category at June 30, 2018 and December 31, 2017:
 
 
 
Unrealized
 
 
(dollar amounts in millions)
Amortized
Cost
 
Gross
Gains
 
Gross
Losses
 
Fair Value
June 30, 2018
 
 
 
 
 
 
 
U.S. Treasury
$
6

 
$

 
$

 
$
6

Federal agencies:
 
 
 
 
 
 
 
Residential CMO
7,554

 

 
(304
)
 
7,250

Residential MBS
678

 

 
(19
)
 
659

Commercial MBS
1,815

 

 
(72
)
 
1,743

Other agencies
188

 

 
(5
)
 
183

Total U.S. Treasury, Federal agency and other agency securities
10,241

 

 
(400
)
 
9,841

Municipal securities
3,826

 
12

 
(73
)
 
3,765

Asset-backed securities
381

 

 
(8
)
 
373

Corporate debt
87

 
1

 
(1
)
 
87

Other securities/Sovereign debt
4

 

 

 
4

Total available-for-sale securities
$
14,539

 
$
13

 
$
(482
)
 
$
14,070

 
 
 
Unrealized
 
 
(dollar amounts in millions)
Amortized
Cost
 
Gross
Gains
 
Gross
Losses
 
Fair Value
December 31, 2017
 
 
 
 
 
 
 
U.S. Treasury
$
5

 
$

 
$

 
$
5

Federal agencies:
 
 
 
 
 
 
 
Residential CMO
6,661

 
1

 
(178
)
 
6,484

Residential MBS
1,371

 
1

 
(5
)
 
1,367

Commercial MBS
2,539

 

 
(52
)
 
2,487

Other agencies
69

 
1

 

 
70

Total U.S. Treasury, Federal agency and other agency securities
10,645

 
3

 
(235
)
 
10,413

Municipal securities
3,892

 
21

 
(35
)
 
3,878

Asset-backed securities
482

 
1

 
(16
)
 
467

Corporate debt
106

 
3

 

 
109

Other securities/Sovereign debt
2

 

 

 
2

Total available-for-sale securities
$
15,127

 
$
28

 
$
(286
)
 
$
14,869


The following tables provide detail on investment securities with unrealized losses aggregated by investment category and the length of time the individual securities have been in a continuous loss position as of June 30, 2018 and December 31, 2017.
 
Less than 12 Months
 
Over 12 Months
 
Total
(dollar amounts in millions)
Fair Value
 
Gross Unrealized
Losses
 
Fair Value
 
Gross Unrealized
Losses
 
Fair Value
 
Gross Unrealized
Losses
June 30, 2018
 
 
 
 
 
 
 
 
 
 
 
Federal agencies:
 
 
 
 
 
 
 
 
 
 
 
Residential CMO
$
3,217

 
$
(86
)
 
$
3,988

 
$
(218
)
 
$
7,205

 
$
(304
)
Residential MBS
638

 
(19
)
 
12

 

 
650

 
(19
)
Commercial MBS
285

 
(9
)
 
1,458

 
(63
)
 
1,743

 
(72
)
Other agencies
88

 
(2
)
 
85

 
(3
)
 
173

 
(5
)
Total Federal Agency and other agency securities
4,228

 
(116
)
 
5,543

 
(284
)
 
9,771

 
(400
)
Municipal securities
2,306

 
(49
)
 
723

 
(24
)
 
3,029

 
(73
)
Asset-backed securities
210

 
(4
)
 
102

 
(4
)
 
312

 
(8
)
Corporate debt
61

 
(1
)
 

 

 
61

 
(1
)
Other securities/Sovereign debt

 

 

 

 

 

Total temporarily impaired securities
$
6,805

 
$
(170
)
 
$
6,368

 
$
(312
)
 
$
13,173

 
$
(482
)
 
Less than 12 Months
 
Over 12 Months
 
Total
(dollar amounts in millions)
Fair Value
 
Gross Unrealized
Losses
 
Fair Value
 
Gross Unrealized
Losses
 
Fair Value
 
Gross Unrealized
Losses
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
Federal agencies:
 
 
 
 
 
 
 
 
 
 
 
Residential CMO
$
1,660

 
$
(19
)
 
$
4,520

 
$
(159
)
 
$
6,180

 
$
(178
)
Residential MBS
1,078

 
(5
)
 
11

 

 
1,089

 
(5
)
Commercial MBS
960

 
(15
)
 
1,527

 
(37
)
 
2,487

 
(52
)
Other agencies
39

 

 

 

 
39

 

Total Federal Agency and other agency securities
3,737

 
(39
)
 
6,058

 
(196
)
 
9,795

 
(235
)
Municipal securities
1,681

 
(21
)
 
497

 
(14
)
 
2,178

 
(35
)
Asset-backed securities
127

 
(1
)
 
173

 
(15
)
 
300

 
(16
)
Total temporarily impaired securities
$
5,545

 
$
(61
)
 
$
6,728

 
$
(225
)
 
$
12,273

 
$
(286
)

At June 30, 2018 and December 31, 2017, the carrying value of investment securities pledged to secure public and trust deposits, trading account liabilities, U.S. Treasury demand notes, and security repurchase agreements totaled $4.7 billion and $6.1 billion, respectively. There were no securities of a single issuer, which are not governmental or government-sponsored, that exceeded 10% of shareholders’ equity at either June 30, 2018 or December 31, 2017.
The following table is a summary of realized securities gains and losses for the three-month and six-month periods ended June 30, 2018 and 2017, respectively.
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
(dollar amounts in millions)
2018
 
2017
 
2018
 
2017
Gross gains on sales of securities
$
1

 
$
4

 
$
6

 
$
5

Gross (losses) on sales of securities
(1
)
 

 
(6
)
 
(1
)
Net gain on sales of securities
$

 
$
4

 
$

 
$
4

OTTI recognized in earnings

 
(4
)
 

 
(4
)
Net securities gains (losses)
$

 
$

 
$

 
$



Security Impairment
Huntington evaluates the available-for-sale securities portfolio for impairment on a quarterly basis by conducting a comprehensive security-level assessment on all available-for-sale securities. Impairment would exist when the present value of the expected cash flows are not sufficient to recover the entire amortized cost basis at the balance sheet date. Under these circumstances, any credit impairment would be recognized in earnings. As of June 30, 2018, Huntington has evaluated available-for-sale securities with gross unrealized losses for impairment and concluded no OTTI is required.