|
Derivative Financial Instruments (Tables)
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12 Months Ended |
|
Dec. 31, 2011
|
| Derivative Financial Instruments [Abstract] |
|
| 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 at December 31, 2011, identified by the underlying interest rate-sensitive instruments
| |
|
|
Fair Value |
|
|
Cash Flow |
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|
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| (dollar amounts in thousands) |
|
Hedges |
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|
Hedges |
|
|
Total |
| Instruments associated with: |
|
|
|
|
|
|
|
|
| |
Loans |
$ |
--- |
|
$ |
7,035,000 |
|
$ |
7,035,000 |
| |
Investment securities |
|
--- |
|
|
50,000 |
|
|
50,000 |
| |
Deposits |
|
988,912 |
|
|
--- |
|
|
988,912 |
| |
Subordinated notes |
|
598,000 |
|
|
--- |
|
|
598,000 |
| |
Other long-term debt |
|
35,000 |
|
|
--- |
|
|
35,000 |
| Total notional value at December 31, 2011 |
$ |
1,621,912 |
|
$ |
7,085,000 |
|
$ |
8,706,912 |
|
| Additional information about the interest rate swaps used in asset and liability management activities |
The following table presents additional information about the interest rate swaps and caps used in Huntington's asset and liability management activities at December 31, 2011:
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|
|
|
|
Average |
|
|
|
|
Weighted-Average |
| |
|
|
Notional |
|
Maturity |
|
|
Fair |
|
Rate |
| (dollar amounts in thousands ) |
|
Value |
|
(years) |
|
|
Value |
|
Receive |
Pay |
| Asset conversion swaps - receive fixed - generic |
$ |
7,085,000 |
|
1.6 |
|
$ |
64,408 |
|
1.49 |
% |
0.64 |
% |
| Total asset conversion swaps |
|
7,085,000 |
|
1.6 |
|
|
64,408 |
|
1.49 |
|
0.64 |
|
| Liability conversion swaps |
|
|
|
|
|
|
|
|
|
|
|
|
| Liability conversion swaps - receive fixed - generic |
|
1,591,912 |
|
3.6 |
|
|
111,205 |
|
2.53 |
|
0.55 |
|
| Liability conversion swaps - receive fixed - callable |
|
30,000 |
|
8.8 |
|
|
319 |
|
2.98 |
|
0.18 |
|
| Total liability conversion swaps |
|
1,621,912 |
|
3.7 |
|
|
111,524 |
|
2.54 |
|
0.54 |
|
| Total swap portfolio |
$ |
8,706,912 |
|
2.0 |
|
$ |
175,932 |
|
1.68 |
% |
0.62 |
% |
|
| Asset and liability derivatives included in accrued income and other assets |
| Asset derivatives included in accrued income and other assets |
| |
|
|
December 31, |
| (dollar amounts in thousands) |
|
2011 |
|
|
2010 |
| Interest rate contracts designated as hedging instruments |
$ |
175,932 |
|
$ |
127,346 |
| Interest rate contracts not designated as hedging instruments |
|
309,496 |
|
|
263,015 |
| Foreign exchange contracts not designated as hedging instruments |
|
4,885 |
|
|
2,845 |
| Total contracts |
$ |
490,313 |
|
$ |
393,206 |
| |
|
|
|
|
|
|
| Liability derivatives included in accrued expenses and other liabilities |
| |
|
|
December 31, |
| (dollar amounts in thousands) |
|
2011 |
|
|
2010 |
| Interest rate contracts designated as hedging instruments |
$ |
--- |
|
$ |
--- |
| Interest rate contracts not designated as hedging instruments |
|
252,962 |
|
|
233,805 |
| Foreign exchange contracts not designated as hedging instruments |
|
4,318 |
|
|
3,107 |
| Total contracts |
$ |
257,280 |
|
$ |
236,912 |
|
| 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 thousands)
|
|
2011 |
|
|
2010 |
|
|
2009 |
|
Interest rate contracts
|
|
|
|
|
|
|
|
|
| |
Change in fair value of interest rate swaps hedging deposits (1)
|
$ |
801 |
|
$ |
6,108 |
|
$ |
1,430 |
| |
Change in fair value of hedged deposits (1)
|
|
(1,050) |
|
|
(6,744) |
|
|
9,417 |
| |
Change in fair value of interest rate swaps hedging subordinated notes (2)
|
|
45,480 |
|
|
19,319 |
|
|
(99,913) |
| |
Change in fair value of hedged subordinated notes (2)
|
|
(45,480) |
|
|
(19,319) |
|
|
99,913 |
| |
Change in fair value of interest rate swaps hedging other long-term debt (2)
|
|
2,493 |
|
|
1,847 |
|
|
(6,201) |
| |
Change in fair value of hedged other long-term debt (2)
|
|
(2,493) |
|
|
(1,847) |
|
|
6,201 |
| |
|
|
|
|
|
|
|
|
|
| (1) Effective portion of the hedging relationship is recognized in Interest expense - deposits in the Consolidated Statements of Income. Any resulting ineffective portion of the hedging relationship is recognized in noninterest income in the Consolidated Statements of Income. |
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|
|
|
|
|
|
|
|
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| (2) Effective portion of the hedging relationship is recognized in Interest expense - subordinated notes and other-long-term debt in the Consolidated Statements of Income. Any resulting ineffective portion of the hedging relationship is recognized in noninterest income in the Consolidated Statements of Income. |
|
| Gains and (losses) recognized in other comprehensive income (loss) (OCI) for derivatives designated as effective cash flow hedges |
The following table presents the gains and (losses) recognized in OCI and the location in the Consolidated Statements of Income of gains and (losses) reclassified from OCI into earnings for derivatives designated as effective cash flow hedges:
| Derivatives in cash flow hedging relationships |
|
Amount of gain or (loss) recognized in OCI on derivatives (effective portion) |
|
Location of gain or (loss) reclassified from accumulated OCI into earnings (effective portion) |
|
Amount of gain or (loss) reclassified from accumulated OCI into earnings (effective portion) |
| (dollar amounts in thousands) |
2011 |
|
|
2010 |
|
|
2009 |
|
|
|
2011 |
|
|
2010 |
|
|
2009 |
| Interest rate contracts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Loans |
$ |
2,469 |
|
$ |
51,943 |
|
$ |
(68,365) |
|
Interest and fee income - loans and leases |
$ |
3,080 |
|
$ |
(116,881) |
|
$ |
117,669 |
| |
Investment securities |
|
703 |
|
|
--- |
|
|
--- |
|
Interest and fee income - investment securities |
|
--- |
|
|
--- |
|
|
--- |
| |
FHLB Advances |
|
--- |
|
|
--- |
|
|
1,338 |
|
Interest expense - FHLB Advances |
|
--- |
|
|
2,580 |
|
|
6,890 |
| |
Deposits |
|
--- |
|
|
--- |
|
|
326 |
|
Interest expense - deposits |
|
--- |
|
|
--- |
|
|
4,153 |
| |
Subordinated notes |
|
--- |
|
|
--- |
|
|
101 |
|
Interest expense - subordinated notes and other long-term debt |
|
27 |
|
|
(1,391) |
|
|
(2,717) |
| |
Other long-term debt |
|
--- |
|
|
--- |
|
|
--- |
|
Interest expense - subordinated notes and other long-term debt |
|
--- |
|
|
--- |
|
|
(899) |
| Total |
$ |
3,172 |
|
$ |
51,943 |
|
$ |
(66,600) |
|
|
$ |
3,107 |
|
$ |
(115,692) |
|
$ |
125,096 |
|
| Gains and (losses) recognized in noninterest income on the ineffective portion on interest rate contracts for derivatives designated as fair value and cash flow hedges |
The following table presents the gains and (losses) recognized in noninterest income for the ineffective portion of interest rate contracts for derivatives designated as cash flow hedges for the years ending December 31, 2011, 2010, and 2009.
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|
|
December 31, |
| (dollar amounts in thousands) |
|
2011 |
|
|
2010 |
|
|
2009 |
| |
|
|
|
|
|
|
|
|
|
| Derivatives in cash flow hedging relationships |
|
|
|
|
|
|
|
|
| Interest rate contracts |
|
|
|
|
|
|
|
|
| |
Loans |
$ |
98 |
|
$ |
947 |
|
$ |
16,638 |
| |
FHLB Deposits |
|
--- |
|
|
--- |
|
|
(792) |
|
| Derivative assets and liabilities used in mortgage banking activities |
The following table summarizes the derivative assets and liabilities used in mortgage banking activities:
| |
|
|
At December 31, |
| (dollar amounts in thousands) |
|
2011 |
|
|
2010 |
| |
|
|
|
|
|
|
| Derivative assets: |
|
|
|
|
|
| |
Interest rate lock agreements |
$ |
6,770 |
|
$ |
2,817 |
| |
Forward trades and options |
|
1 |
|
|
20,669 |
| Total derivative assets |
|
6,771 |
|
|
23,486 |
| |
|
|
|
|
|
|
| Derivative liabilities: |
|
|
|
|
|
| |
Interest rate lock agreements |
|
(109) |
|
|
(1,445) |
| |
Forward trades and options |
|
(7,927) |
|
|
(883) |
| Total derivative liabilities |
|
(8,036) |
|
|
(2,328) |
| Net derivative asset (liability) |
$ |
(1,265) |
|
$ |
21,158 |
|