Quarterly report pursuant to Section 13 or 15(d)

Available-for-Sale and Other Securities (Tables)

v2.4.0.6
Available-for-Sale and Other Securities (Tables)
 3 Months Ended
Mar. 31, 2012
Securities [Abstract]  
Contractual maturities of investment securities

Listed below are the contractual maturities (under 1 year, 1-5 years, 6-10 years, and over 10 years) of available-for-sale and other securities at March 31, 2012, December 31, 2011, and March 31, 2011:

        March 31, 2012     December 31, 2011     March 31, 2011
        Amortized           Amortized           Amortized      
(dollar amounts in thousands)   Cost     Fair Value     Cost     Fair Value     Cost     Fair Value
  U.S. Treasury:                                  
    Under 1 year $ 11,799   $ 11,799   $ ---   $ ---   $ ---   $ ---
    1-5 years   51,609     52,317     51,773     52,672     52,264     51,453
    6-10 years   509     524     509     532     ---     ---
    Over 10 years   ---     ---     ---     ---     ---     ---
  Total U.S. Treasury   63,917     64,640     52,282     53,204     52,264     51,453
  Federal agencies: mortgage-backed securities:                                  
    Under 1 year   ---     ---     ---     ---     ---     ---
    1-5 years   209,509     211,096     218,410     219,055     48,832     48,408
    6-10 years   467,959     476,376     400,105     409,521     614,519     622,263
    Over 10 years   4,494,846     4,577,036     3,760,108     3,836,316     4,289,087     4,300,414
  Total Federal agencies: mortgage-backed securities 5,172,314     5,264,508     4,378,623     4,464,892     4,952,438     4,971,085
  TLGP securities:                                  
    Under 1 year   ---     ---     ---     ---     156,044     157,196
    1-5 years   ---     ---     ---     ---     ---     ---
    6-10 years   ---     ---     ---     ---     ---     ---
    Over 10 years   ---     ---     ---     ---     ---     ---
  Total TLGP securities   ---     ---     ---     ---     156,044     157,196
  Other agencies:                                  
    Under 1 year   1,650     1,664     101,346     101,656     183,405     184,672
    1-5 years   611,216     622,780     611,047     620,639     1,104,343     1,085,323
    6-10 years   58,110     59,362     12,333     13,249     13,325     13,515
    Over 10 years   ---     ---     ---     ---     ---     ---
  Total other agencies   670,976     683,806     724,726     735,544     1,301,073     1,283,510
Total U.S. Government backed agencies   5,907,207     6,012,954     5,155,631     5,253,640     6,461,819     6,463,244
Municipal securities:                                  
  Under 1 year   ---     ---     ---     ---     855     855
  1-5 years   183,666     187,795     186,250     190,228     155,457     155,109
  6-10 years 108,631     114,717     98,801     104,857     112,665     113,888
  Over 10 years   87,428     88,694     109,811     112,641     170,903     170,295
Total municipal securities   379,725     391,206     394,862     407,726     439,880     440,147
Private-label CMO:                                  
  Under 1 year   ---     ---     ---     ---     ---     ---
  1-5 years   ---     ---     ---     ---     ---     ---
  6-10 years   10,361     10,437     11,740     11,783     8,828     9,209
  Over 10 years   67,931     59,794     72,858     60,581     115,573     106,337
Total private-label CMO   78,292     70,231     84,598     72,364     124,401     115,546
Asset-backed securities:                                  
  Under 1 year   ---     ---     ---     ---     ---     ---
  1-5 years   657,648     661,449     644,080     646,315     662,319     665,316
  6-10 years   299,237     300,401     197,940     199,075     147,236     148,171
  Over 10 years   289,476     160,718     258,270     121,698     293,944     165,599
Total asset-backed securities (1)   1,246,361     1,122,568     1,100,290     967,088     1,103,499     979,086
Covered bonds:                                  
  Under 1 year   ---     ---     ---     ---     ---     ---
  1-5 years   400,776     401,856     510,937     504,045     556,500     545,069
  6-10 years   ---     ---     ---     ---     ---     ---
  Over 10 years   ---     ---     ---     ---     ---     ---
Total covered bonds   400,776     401,856     510,937     504,045     556,500     545,069
Corporate debt:                                  
  Under 1 year   900     926     501     518     ---     ---
  1-5 years   418,780     418,342     383,909     379,657     414,667     409,032
  6-10 years   128,938     131,581     148,896     148,708     ---     ---
  Over 10 years   10,170     9,971     ---     ---     ---     ---
Total corporate debt   558,788     560,820     533,306     528,883     414,667     409,032
Other:                                  
  Under 1 year   2,650     2,648     1,900     1,900     750     750
  1-5 years   1,250     1,237     2,250     2,234     7,861     8,058
  6-10 years   ---     ---     ---     ---     804     827
  Over 10 years   ---     ---     ---     ---     ---     ---
  Non-marketable equity securities   291,303     291,303     286,515     286,515     308,457     308,457
  Marketable equity securities   54,613     54,910     53,665     53,619     52,806     52,218
Total other   349,816     350,098     344,330     344,268     370,678     370,310
Total available-for-sale and other securities $ 8,920,965   $ 8,909,733   $ 8,123,954   $ 8,078,014   $ 9,471,444   $ 9,322,434
                                       
(1) Amounts at March 31, 2012, December 31, 2011, and March 31, 2011 include automobile asset backed securities with a fair value of $106 million, $145 million and $331 million, respectively, which meet the eligibility requirements for the Term Asset-Backed Securities Loan Facility, or "TALF," administered by the Federal Reserve Bank of New York.
Amortized cost, fair value, and gross unrealized gains and losses recognized in accumulated other comprehensive income
            Unrealized      
      Amortized     Gross     Gross     Fair
(dollar amounts in thousands)   Cost     Gains     Losses     Value
March 31, 2012                      
U.S. Treasury $ 63,917   $ 723   $ ---   $ 64,640
Federal agencies:                      
  Mortgage-backed securities   5,172,314     96,126     (3,932)     5,264,508
  TLGP securities   ---     ---     ---     ---
  Other agencies   670,976     12,836     (6)     683,806
Total U.S. Government                      
  backed securities   5,907,207     109,685     (3,938)     6,012,954
Municipal securities   379,725     11,496     (15)     391,206
Private-label CMO   78,292     897     (8,958)     70,231
Asset-backed securities   1,246,361     5,489     (129,282)     1,122,568
Covered bonds   400,776     3,244     (2,164)     401,856
Corporate debt   558,788     5,357     (3,325)     560,820
Other securities   349,816     470     (188)     350,098
Total available-for-sale and other securities $ 8,920,965   $ 136,638   $ (147,870)   $ 8,909,733
                         
            Unrealized      
      Amortized     Gross     Gross     Fair
(dollar amounts in thousands)   Cost     Gains     Losses     Value
December 31, 2011                      
U.S. Treasury $ 52,282   $ 922   $ ---   $ 53,204
Federal agencies:                      
  Mortgage-backed securities   4,378,623     88,266     (1,997)     4,464,892
  TLGP securities   ---     ---     ---     ---
  Other agencies   724,726     10,821     (3)     735,544
Total U.S. Government                      
  backed securities   5,155,631     100,009     (2,000)     5,253,640
Municipal securities   394,862     12,889     (25)     407,726
Private-label CMO   84,598     347     (12,581)     72,364
Asset-backed securities   1,100,290     3,925     (137,127)     967,088
Covered bonds   510,937     860     (7,752)     504,045
Corporate debt   533,306     891     (5,314)     528,883
Other securities   344,330     219     (281)     344,268
Total available-for-sale and other securities $ 8,123,954   $ 119,140   $ (165,080)   $ 8,078,014
                         
            Unrealized      
      Amortized     Gross     Gross     Fair
(dollar amounts in thousands)   Cost     Gains     Losses     Value
March 31, 2011                      
U.S. Treasury $ 52,264   $ ---   $ (811)   $ 51,453
Federal agencies:                      
  Mortgage-backed securities   4,952,438     61,338     (42,691)     4,971,085
  TLGP securities   156,044     1,152     ---     157,196
  Other agencies   1,301,073     2,041     (19,604)     1,283,510
Total U.S. Government                      
  backed securities   6,461,819     64,531     (63,106)     6,463,244
Municipal securities   439,880     6,052     (5,785)     440,147
Private-label CMO   124,401     1,388     (10,243)     115,546
Asset-backed securities   1,103,499     4,854     (129,267)     979,086
Covered bonds   556,500     157     (11,588)     545,069
Corporate debt   414,667     114     (5,749)     409,032
Other securities   370,678     389     (757)     370,310
Total available-for-sale and other securities $ 9,471,444   $ 77,485   $ (226,495)   $ 9,322,434
                         
Investment securities in an unrealized loss position
      Less than 12 Months     Over 12 Months     Total
      Fair     Unrealized     Fair     Unrealized     Fair     Unrealized
(dollar amounts in thousands )   Value     Losses     Value     Losses     Value     Losses
March 31, 2012                                  
U.S. Treasury $ ---   $ ---   $ ---   $ ---   $ ---   $ ---
Federal agencies:                                  
  Mortgage-backed securities   547,385     (3,932)     ---     ---     547,385     (3,932)
  TLGP securities   ---     ---     ---     ---     ---     ---
  Other agencies   1,893     (6)     ---     ---     1,893     (6)
Total U.S. Government                                  
  backed securities   549,278     (3,938)     ---     ---     549,278     (3,938)
Municipal securities   ---     ---     3,500     (15)     3,500     (15)
Private-label CMO   ---     ---     51,275     (8,958)     51,275     (8,958)
Asset-backed securities   188,989     (463)     119,323     (128,819)     308,312     (129,282)
Covered bonds   145,721     (2,164)     ---     ---     145,721     (2,164)
Corporate debt   101,774     (1,563)     243,238     (1,762)     345,012     (3,325)
Other securities   1,735     (15)     884     (173)     2,619     (188)
                                     
Total temporarily impaired securities $ 987,497   $ (8,143)   $ 418,220   $ (139,727)   $ 1,405,717   $ (147,870)
                                     
      Less than 12 Months     Over 12 Months     Total
      Fair     Unrealized     Fair     Unrealized     Fair     Unrealized
(dollar amounts in thousands )   Value     Losses     Value     Losses     Value     Losses
December 31, 2011                                  
U.S. Treasury $ ---   $ ---   $ ---   $ ---   $ ---   $ ---
Federal agencies:                                  
  Mortgage-backed securities   417,614     (1,997)     ---     ---     417,614     (1,997)
  TLGP securities   ---     ---     ---     ---     ---     ---
  Other agencies   3,070     (3)     ---     ---     3,070     (3)
Total U.S. Government                                  
  backed securities   420,684     (2,000)     ---     ---     420,684     (2,000)
Municipal securities   6,667     (1)     7,311     (24)     13,978     (25)
Private-label CMO   11,613     (48)     51,039     (12,533)     62,652     (12,581)
Asset-backed securities   252,671     (547)     113,663     (136,580)     366,334     (137,127)
Covered bonds   363,694     (7,214)     14,684     (538)     378,378     (7,752)
Corporate debt   237,401     (3,652)     198,338     (1,662)     435,739     (5,314)
Other securities   1,984     (16)     ---     (265)     1,984     (281)
                                     
Total temporarily impaired securities $ 1,294,714   $ (13,478)   $ 385,035   $ (151,602)   $ 1,679,749   $ (165,080)
                                     
      Less than 12 Months     Over 12 Months     Total
      Fair     Unrealized     Fair     Unrealized     Fair     Unrealized
(dollar amounts in thousands )   Value     Losses     Value     Losses     Value     Losses
March 31, 2011                                  
U.S. Treasury $ 51,453   $ (811)   $ ---   $ ---   $ 51,453   $ (811)
Federal agencies:                                  
  Mortgage-backed securities   1,799,899     (42,691)     ---     ---     1,799,899     (42,691)
  TLGP securities   ---     ---     ---     ---     ---     ---
  Other agencies   964,978     (19,485)     10,558     (119)     975,536     (19,604)
Total U.S. Government                                  
  backed securities   2,816,330     (62,987)     10,558     (119)     2,826,888     (63,106)
Municipal securities   200,747     (5,649)     3,684     (136)     204,431     (5,785)
Private-label CMO   ---     ---     82,798     (10,243)     82,798     (10,243)
Asset-backed securities   114,375     (766)     152,715     (128,501)     267,090     (129,267)
Covered bonds   421,634     (11,588)     ---     ---     421,634     (11,588)
Corporate debt   374,199     (5,749)     ---     ---     374,199     (5,749)
Other securities   4     (1)     2,790     (756)     2,794     (757)
                                     
Total temporarily impaired securities $ 3,927,289   $ (86,740)   $ 252,545   $ (139,755)   $ 4,179,834   $ (226,495)
Realized securities gains and losses

The following table is a summary of realized securities gains and losses for the three-month periods ended March 31, 2012 and 2011:

        Three Months Ended
        March 31,
(dollar amounts in thousands)     2012     2011
  Gross gains on sales of securities   $ 779   $ 6,735
  Gross (losses) on sales of securities     (155)     (2,530)
Net gain on sales of securities     624     4,205
Other-than-temporary impairment recorded     (1,237)     (4,165)
Total securities (loss) gain   $ (613)   $ 40
               
Credit Ratings on Selected Investment Securities

The following table presents the credit ratings for our Alt-A mortgage-backed, pooled-trust-preferred, and private label CMO securities as of March 31, 2012:

Credit Ratings of Selected Investment Securities (1)            
(dollar amounts in thousands)             Average Credit Rating of Fair Value Amount
      Amortized                          
      Cost   Fair Value     AAA   AA +/-   A +/-   BBB +/-   <BBB-
  Private-label CMO securities $ 78,292 $ 70,231   $ --- $ --- $ 21,663 $ 5,850 $ 42,718
  Alt-A mortgage-backed securities   55,332   48,663     ---   24,364   6,374   ---   17,925
  Pooled-trust-preferred securities   199,144   77,034     ---   ---   21,745   ---   55,289
Total at March 31, 2012 $ 332,768 $ 195,928   $ --- $ 24,364 $ 49,782 $ 5,850 $ 115,932
Total at December 31, 2011 $ 342,867 $ 194,062   $ 1,045 $ 23,353 $ 52,935 $ 6,858 $ 109,871
                                 
(1) Credit ratings reflect the lowest current rating assigned by a nationally recognized credit rating agency.
Trust Preferred Securities Data

The following table summarizes the relevant characteristics of our pooled-trust-preferred securities portfolio at March 31, 2012. Each security is part of a pool of issuers and supports a more senior tranche of securities except for the I-Pre TSL II, and MM Comm III securities which are the most senior class.

Trust Preferred Securities Data                    
March 31, 2012                          
(dollar amounts in thousands)         Actual          
                        Deferrals   Expected      
                        and   Defaults      
                      # of Issuers Defaults   as a % of      
                    Lowest Currently as a % of   Remaining      
        Amortized Fair Unrealized Credit Performing/ Original   Performing   Excess  
Deal Name Par Value Cost Value Loss Rating (2) Remaining (3) Collateral   Collateral   Subordination (4)  
Alesco II (1) $ 41,646 $ 31,102 $ 10,228 $ (20,874) C 31/36 11 % 15 % --- %
Alesco IV (1)   21,176   8,243   440   (7,803) C 31/42 17   23   ---  
ICONS   20,000   20,000   12,482   (7,518) BB 25/26 3   15   53  
I-Pre TSL II   31,736   31,651   21,746   (9,905) A 24/25 3   13   74  
MM Comm III   7,425   7,094   4,040   (3,054) CC 5/10 7   14   33  
Pre TSL IX (1)   5,000   3,955   1,353   (2,602) C 32/48 28   16   3  
Pre TSL X (1)   17,955   9,915   4,029   (5,886) C 33/53 42   26   ---  
Pre TSL XI (1)   25,691   22,667   6,556   (16,111) C 42/63 29   19   ---  
Pre TSL XIII (1)   28,495   22,703   6,810   (15,893) C 40/63 33   24   ---  
Reg Diversified (1)   25,500   6,908   393   (6,515) D 24/44 45   17   ---  
Soloso (1)   12,500   3,906   770   (3,136) C 41/65 29   18   ---  
Tropic III   31,000   31,000   8,187   (22,813) CC 22/43 42   32   26  
Total $ 268,124 $ 199,144 $ 77,034 $ (122,110)                
                                   
(1) Security was determined to have OTTI. As such, the book value is net of recorded credit impairment.
(2) For purposes of comparability, the lowest credit rating expressed is equivalent to Fitch ratings even where the lowest rating is based on another nationally recognized credit rating agency.
(3) Includes both banks and/or insurance companies.
(4) Excess subordination percentage represents the additional defaults in excess of both current and projected defaults that the CDO can absorb before the bond experiences credit impairment. Excess subordinated percentage is calculated by (a) determining what percentage of defaults a deal can experience before the bond has credit impairment, and (b) subtracting from this default breakage percentage both total current and expected future default percentages.
Total OTTI losses, OTTI losses included in OCI, and OTTI recognized in the income statement for securities evaluated for impairment by debt security debt
    Three Months Ended March 31,
      Alt-A     Pooled-     Private-      
(dollar amounts in thousands) Mortgage-backed trust-preferred label CMO   Total
2012                      
Total OTTI recoveries (losses) (unrealized and realized) $ 1,424   $ 2,911   $ 1,392   $ 5,727
  Unrealized OTTI (recoveries) losses recognized in OCI   (1,424)     (2,911)     (2,629)     (6,964)
Net impairment losses recognized in earnings $ ---   $ ---   $ (1,237)   $ (1,237)
                         
2011                      
Total OTTI recoveries (losses) (unrealized and realized) $ 1,104   $ 6,397   $ 2,375   $ 9,876
  Unrealized OTTI (recoveries) losses recognized in OCI   (1,275)     (9,604)     (3,162)     (14,041)
Net impairment losses recognized in earnings $ (171)   $ (3,207)   $ (787)   $ (4,165)
                         
                         

The following table rolls forward the unrealized OTTI recognized in OCI on debt securities held by Huntington for the three-month periods ended March 31, 2012 and 2011:

Unrealized OTTI recognized in OCI

The following table rolls forward the unrealized OTTI recognized in OCI on debt securities held by Huntington for the three-month periods ended March 31, 2012 and 2011:

      Three Months Ended
      March 31,
(dollar amounts in thousands)     2012     2011
Balance, beginning of period   $ 89,301   $ 100,838
  Reductions from sales of securities with credit impairment     ---     ---
  Noncredit impairment on securities not previously considered credit impaired     ---     ---
  Change due to improvement in expected cash flows     (6,964)     (14,041)
  Additional noncredit impairment on securities with previous credit impairment     ---     ---
Balance, end of period   $ 82,337   $ 86,797
               
OTTI recognized in earnings on debt securities held by Huntington

The following table rolls forward the OTTI recognized in earnings on debt securities held by Huntington for the three-month periods ended March 31, 2012 and 2011 as follows:

      Three Months Ended
      March 31,
(dollar amounts in thousands)     2012     2011
Balance, beginning of period   $ 56,764   $ 54,536
  Reductions from sales/maturities     (1,097)     ---
  Credit losses not previously recognized     ---     ---
  Additional credit losses     1,237     4,165
Balance, end of period   $ 56,904   $ 58,701