| Investment Securities Disclosure [Text Block] |
INVESTMENT SECURITIES AND OTHER SECURITIES Debt securities purchased in which Huntington has the positive intent and ability to hold to their maturity are classified as held-to-maturity securities. All other debt and equity securities are classified as either available-for-sale or other securities.
The following tables provide amortized cost, fair value, and gross unrealized gains and losses by investment category at September 30, 2019 and December 31, 2018:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized |
|
|
(dollar amounts in millions) |
Amortized
Cost
|
|
Gross
Gains
|
|
Gross
Losses
|
|
Fair Value |
September 30, 2019 |
|
|
|
|
|
|
|
Available-for-sale securities: |
|
|
|
|
|
|
|
U.S. Treasury |
$ |
10 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
10 |
|
Federal agencies: |
|
|
|
|
|
|
|
Residential CMO |
6,668 |
|
|
71 |
|
|
(15 |
) |
|
6,724 |
|
Residential MBS |
2,355 |
|
|
39 |
|
|
(1 |
) |
|
2,393 |
|
Commercial MBS |
1,237 |
|
|
3 |
|
|
(1 |
) |
|
1,239 |
|
Other agencies |
117 |
|
|
— |
|
|
— |
|
|
117 |
|
Total U.S. Treasury, federal agency and other agency securities |
10,387 |
|
|
113 |
|
|
(17 |
) |
|
10,483 |
|
Municipal securities |
3,147 |
|
|
35 |
|
|
(30 |
) |
|
3,152 |
|
Asset-backed securities |
588 |
|
|
8 |
|
|
(1 |
) |
|
595 |
|
Corporate debt |
50 |
|
|
2 |
|
|
— |
|
|
52 |
|
Other securities/Sovereign debt |
4 |
|
|
— |
|
|
— |
|
|
4 |
|
Total available-for-sale securities |
$ |
14,176 |
|
|
$ |
158 |
|
|
$ |
(48 |
) |
|
$ |
14,286 |
|
|
|
|
|
|
|
|
|
Held-to-maturity securities: |
|
|
|
|
|
|
|
Federal agencies: |
|
|
|
|
|
|
|
Residential CMO |
$ |
1,970 |
|
|
$ |
41 |
|
|
$ |
(3 |
) |
|
$ |
2,008 |
|
Residential MBS |
2,065 |
|
|
45 |
|
|
— |
|
|
2,110 |
|
Commercial MBS |
4,075 |
|
|
66 |
|
|
— |
|
|
4,141 |
|
Other agencies |
316 |
|
|
5 |
|
|
— |
|
|
321 |
|
Total federal agency and other agency securities |
8,426 |
|
|
157 |
|
|
(3 |
) |
|
8,580 |
|
Municipal securities |
4 |
|
|
— |
|
|
— |
|
|
4 |
|
Total held-to-maturity securities |
$ |
8,430 |
|
|
$ |
157 |
|
|
$ |
(3 |
) |
|
$ |
8,584 |
|
|
|
|
|
|
|
|
|
Other securities, at cost: |
|
|
|
|
|
|
|
Non-marketable equity securities: |
|
|
|
|
|
|
|
Federal Home Loan Bank stock |
$ |
104 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
104 |
|
Federal Reserve Bank stock |
297 |
|
|
— |
|
|
— |
|
|
297 |
|
Other securities, at fair value |
|
|
|
|
|
|
|
Mutual funds |
53 |
|
|
— |
|
|
— |
|
|
53 |
|
Marketable equity securities |
1 |
|
|
— |
|
|
— |
|
|
1 |
|
Total other securities |
$ |
455 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
455 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized |
|
|
(dollar amounts in millions) |
Amortized
Cost |
|
Gross
Gains |
|
Gross
Losses |
|
Fair Value |
December 31, 2018 |
|
|
|
|
|
|
|
Available-for-sale securities: |
|
|
|
|
|
|
|
U.S. Treasury |
$ |
5 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
5 |
|
Federal agencies: |
|
|
|
|
|
|
|
Residential CMO |
7,185 |
|
|
15 |
|
|
(201 |
) |
|
6,999 |
|
Residential MBS |
1,261 |
|
|
9 |
|
|
(15 |
) |
|
1,255 |
|
Commercial MBS |
1,641 |
|
|
— |
|
|
(58 |
) |
|
1,583 |
|
Other agencies |
128 |
|
|
— |
|
|
(2 |
) |
|
126 |
|
Total U.S. Treasury, federal agency and other agency securities |
10,220 |
|
|
24 |
|
|
(276 |
) |
|
9,968 |
|
Municipal securities |
3,512 |
|
|
6 |
|
|
(78 |
) |
|
3,440 |
|
Asset-backed securities |
318 |
|
|
1 |
|
|
(4 |
) |
|
315 |
|
Corporate debt |
54 |
|
|
— |
|
|
(1 |
) |
|
53 |
|
Other securities/Sovereign debt |
4 |
|
|
— |
|
|
— |
|
|
4 |
|
Total available-for-sale securities |
$ |
14,108 |
|
|
$ |
31 |
|
|
$ |
(359 |
) |
|
$ |
13,780 |
|
|
|
|
|
|
|
|
|
Held-to-maturity securities: |
|
|
|
|
|
|
|
Federal agencies: |
|
|
|
|
|
|
|
Residential CMO |
$ |
2,124 |
|
|
$ |
— |
|
|
$ |
(47 |
) |
|
$ |
2,077 |
|
Residential MBS |
1,851 |
|
|
2 |
|
|
(42 |
) |
|
1,811 |
|
Commercial MBS |
4,235 |
|
|
— |
|
|
(186 |
) |
|
4,049 |
|
Other agencies |
350 |
|
|
— |
|
|
(6 |
) |
|
344 |
|
Total federal agency and other agency securities |
8,560 |
|
|
2 |
|
|
(281 |
) |
|
8,281 |
|
Municipal securities |
5 |
|
|
— |
|
|
— |
|
|
5 |
|
Total held-to-maturity securities |
$ |
8,565 |
|
|
$ |
2 |
|
|
$ |
(281 |
) |
|
$ |
8,286 |
|
|
|
|
|
|
|
|
|
Other securities, at cost: |
|
|
|
|
|
|
|
Non-marketable equity securities: |
|
|
|
|
|
|
|
Federal Home Loan Bank stock |
$ |
248 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
248 |
|
Federal Reserve Bank stock |
295 |
|
|
— |
|
|
— |
|
|
295 |
|
Other securities, at fair value |
|
|
|
|
|
|
|
Mutual funds |
20 |
|
|
— |
|
|
— |
|
|
20 |
|
Marketable equity securities |
1 |
|
|
1 |
|
|
— |
|
|
2 |
|
Total other securities |
$ |
564 |
|
|
$ |
1 |
|
|
$ |
— |
|
|
$ |
565 |
|
The following table provides the amortized cost and fair value of securities by contractual maturity at September 30, 2019 and December 31, 2018. Expected maturities may differ from contractual maturities as issuers may have the right to call or prepay obligations with or without incurring penalties.
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2019 |
|
December 31, 2018 |
(dollar amounts in millions) |
Amortized
Cost
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Fair
Value
|
Available-for-sale securities: |
|
|
|
|
|
|
|
Under 1 year |
$ |
294 |
|
|
$ |
291 |
|
|
$ |
186 |
|
|
$ |
185 |
|
After 1 year through 5 years |
1,084 |
|
|
1,074 |
|
|
1,057 |
|
|
1,039 |
|
After 5 years through 10 years |
1,708 |
|
|
1,717 |
|
|
1,838 |
|
|
1,802 |
|
After 10 years |
11,090 |
|
|
11,204 |
|
|
11,027 |
|
|
10,754 |
|
Total available-for-sale securities |
$ |
14,176 |
|
|
$ |
14,286 |
|
|
$ |
14,108 |
|
|
$ |
13,780 |
|
|
|
|
|
|
|
|
|
Held-to-maturity securities: |
|
|
|
|
|
|
|
Under 1 year |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
After 1 year through 5 years |
18 |
|
|
19 |
|
|
11 |
|
|
11 |
|
After 5 years through 10 years |
329 |
|
|
335 |
|
|
362 |
|
|
356 |
|
After 10 years |
8,083 |
|
|
8,230 |
|
|
8,192 |
|
|
7,919 |
|
Total held-to-maturity securities |
$ |
8,430 |
|
|
$ |
8,584 |
|
|
$ |
8,565 |
|
|
$ |
8,286 |
|
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 at September 30, 2019 and December 31, 2018:
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
September 30, 2019 |
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale securities: |
|
|
|
|
|
|
|
|
|
|
|
Federal agencies: |
|
|
|
|
|
|
|
|
|
|
|
Residential CMO |
$ |
1,287 |
|
|
$ |
(3 |
) |
|
$ |
1,207 |
|
|
$ |
(12 |
) |
|
$ |
2,494 |
|
|
$ |
(15 |
) |
Residential MBS |
353 |
|
|
(1 |
) |
|
9 |
|
|
— |
|
|
362 |
|
|
(1 |
) |
Commercial MBS |
80 |
|
|
— |
|
|
401 |
|
|
(1 |
) |
|
481 |
|
|
(1 |
) |
Other agencies |
1 |
|
|
— |
|
|
— |
|
|
— |
|
|
1 |
|
|
— |
|
Total federal agency and other agency securities |
1,721 |
|
|
(4 |
) |
|
1,617 |
|
|
(13 |
) |
|
3,338 |
|
|
(17 |
) |
Municipal securities |
403 |
|
|
(7 |
) |
|
1,238 |
|
|
(23 |
) |
|
1,641 |
|
|
(30 |
) |
Asset-backed securities |
68 |
|
|
— |
|
|
93 |
|
|
(1 |
) |
|
161 |
|
|
(1 |
) |
Corporate debt |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Total temporarily impaired securities |
$ |
2,192 |
|
|
$ |
(11 |
) |
|
$ |
2,948 |
|
|
$ |
(37 |
) |
|
$ |
5,140 |
|
|
$ |
(48 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Held-to-maturity securities: |
|
|
|
|
|
|
|
|
|
|
|
Federal agencies: |
|
|
|
|
|
|
|
|
|
|
|
Residential CMO |
$ |
160 |
|
|
$ |
(1 |
) |
|
$ |
119 |
|
|
$ |
(2 |
) |
|
$ |
279 |
|
|
$ |
(3 |
) |
Residential MBS |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Commercial MBS |
— |
|
|
— |
|
|
27 |
|
|
— |
|
|
27 |
|
|
— |
|
Other agencies |
5 |
|
|
— |
|
|
— |
|
|
— |
|
|
5 |
|
|
— |
|
Total federal agency and other agency securities |
165 |
|
|
(1 |
) |
|
146 |
|
|
(2 |
) |
|
311 |
|
|
(3 |
) |
Municipal securities |
4 |
|
|
— |
|
|
— |
|
|
— |
|
|
4 |
|
|
— |
|
Total temporarily impaired securities |
$ |
169 |
|
|
$ |
(1 |
) |
|
$ |
146 |
|
|
$ |
(2 |
) |
|
$ |
315 |
|
|
$ |
(3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 2018 |
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale securities: |
|
|
|
|
|
|
|
|
|
|
|
Federal agencies: |
|
|
|
|
|
|
|
|
|
|
|
Residential CMO |
$ |
425 |
|
|
$ |
(3 |
) |
|
$ |
5,943 |
|
|
$ |
(198 |
) |
|
$ |
6,368 |
|
|
$ |
(201 |
) |
Residential MBS |
259 |
|
|
(6 |
) |
|
319 |
|
|
(9 |
) |
|
578 |
|
|
(15 |
) |
Commercial MBS |
10 |
|
|
— |
|
|
1,573 |
|
|
(58 |
) |
|
1,583 |
|
|
(58 |
) |
Other agencies |
— |
|
|
— |
|
|
124 |
|
|
(2 |
) |
|
124 |
|
|
(2 |
) |
Total federal agency and other agency securities |
694 |
|
|
(9 |
) |
|
7,959 |
|
|
(267 |
) |
|
8,653 |
|
|
(276 |
) |
Municipal securities |
1,425 |
|
|
(24 |
) |
|
1,602 |
|
|
(54 |
) |
|
3,027 |
|
|
(78 |
) |
Asset-backed securities |
95 |
|
|
(2 |
) |
|
117 |
|
|
(2 |
) |
|
212 |
|
|
(4 |
) |
Corporate debt |
40 |
|
|
— |
|
|
1 |
|
|
(1 |
) |
|
41 |
|
|
(1 |
) |
Total temporarily impaired securities |
$ |
2,254 |
|
|
$ |
(35 |
) |
|
$ |
9,679 |
|
|
$ |
(324 |
) |
|
$ |
11,933 |
|
|
$ |
(359 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Held-to-maturity securities: |
|
|
|
|
|
|
|
|
|
|
|
Federal agencies: |
|
|
|
|
|
|
|
|
|
|
|
Residential CMO |
$ |
12 |
|
|
$ |
— |
|
|
$ |
2,004 |
|
|
$ |
(47 |
) |
|
$ |
2,016 |
|
|
$ |
(47 |
) |
Residential MBS |
16 |
|
|
— |
|
|
1,457 |
|
|
(42 |
) |
|
1,473 |
|
|
(42 |
) |
Commercial MBS |
— |
|
|
— |
|
|
4,041 |
|
|
(186 |
) |
|
4,041 |
|
|
(186 |
) |
Other agencies |
113 |
|
|
(2 |
) |
|
205 |
|
|
(4 |
) |
|
318 |
|
|
(6 |
) |
Total federal agency and other agency securities |
141 |
|
|
(2 |
) |
|
7,707 |
|
|
(279 |
) |
|
7,848 |
|
|
(281 |
) |
Municipal securities |
— |
|
|
— |
|
|
4 |
|
|
— |
|
|
4 |
|
|
— |
|
Total temporarily impaired securities |
$ |
141 |
|
|
$ |
(2 |
) |
|
$ |
7,711 |
|
|
$ |
(279 |
) |
|
$ |
7,852 |
|
|
$ |
(281 |
) |
At September 30, 2019 and December 31, 2018, the market value of investment securities pledged to secure public and trust deposits, trading account liabilities, U.S. Treasury demand notes, and security repurchase agreements totaled $3.8 billion and $4.5 billion, respectively. There were no securities of a single issuer, which were not governmental or government-sponsored, that exceeded 10% of shareholders’ equity at either September 30, 2019 or December 31, 2018.
The following table is a summary of realized securities gains and losses for the three-month and nine-month periods ended September 30, 2019 and 2018, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
(dollar amounts in millions) |
2019 |
|
2018 |
|
2019 |
|
2018 |
Gross gains on sales of securities |
$ |
— |
|
|
$ |
— |
|
|
$ |
9 |
|
|
$ |
6 |
|
Gross losses on sales of securities |
— |
|
|
(2 |
) |
|
(11 |
) |
|
(8 |
) |
Net (loss) gain on sales of securities |
$ |
— |
|
|
$ |
(2 |
) |
|
$ |
(2 |
) |
|
$ |
(2 |
) |
Security Impairment
Huntington evaluates the securities portfolio for impairment on a quarterly basis. As of September 30, 2019, the Company has evaluated available-for-sale and held-to-maturity securities with gross unrealized losses for impairment and concluded less than $1 million and no OTTI was required for the three-month periods ended September 30, 2019 and 2018, respectively, and less than $1 million and no OTTI was required for the nine-month periods ended September 30, 2019 and 2018, respectively.
Other securities that are carried at cost are reviewed for impairment on a quarterly basis, with valuation adjustments recognized in other noninterest income. As of September 30, 2019, the Company concluded no impairment is required.
|