Annual report pursuant to Section 13 and 15(d)

Available-for-Sale and Other Securities (Tables)

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

Contractual maturities of available-for-sale and other securities as of December 31 were:

      2012     2011
      Amortized     Fair     Amortized     Fair
(dollar amounts in thousands)   Cost     Value     Cost     Value
Under 1 year $ 60,054   $ 60,651   $ 103,747   $ 104,074
1 - 5 years   1,961,217     2,005,022     2,608,656     2,614,845
6 - 10 years   1,170,807     1,208,054     870,324     887,725
Over 10 years   3,989,977     3,967,196     4,201,047     4,131,236
Other securities:                      
  Nonmarketable equity securities   308,075     308,075     286,515     286,515
  Marketable equity securities   16,877     17,177     53,665     53,619
Total available-for-sale and other securities $ 7,507,007   $ 7,566,175   $ 8,123,954   $ 8,078,014
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
December 31, 2012                      
U.S. Treasury $ 51,620   $ 691   $ ---   $ 52,311
Federal agencies:                      
  Mortgage-backed securities   4,149,964     114,984     (278)     4,264,670
  Other agencies   348,846     10,781     (1)     359,626
Total U.S. government backed securities   4,550,430     126,456     (279)     4,676,607
Municipal securities   489,080     13,927     (2,007)     501,000
Private-label CMO   75,557     1,087     (5,076)     71,568
Asset-backed securities (1)   1,126,315     16,287     (113,519)     1,029,083
Covered bonds   282,080     8,545     ---     290,625
Corporate debt   654,693     15,301     (1,852)     668,142
Other securities   328,852     333     (35)     329,150
Total available-for-sale and other securities $ 7,507,007   $ 181,936   $ (122,768)   $ 7,566,175
                         
(1) Amounts at December 31, 2012 include securities backed by automobile loans with a fair value of $3 million which meet the eligibility requirements for the Term Asset-Backed Securities Loan Facility, administered by the Federal Reserve Bank.

                         
            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
  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 (2)   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
                         
(2) Amounts at December 31, 2011 include securities backed by automobile loans with a fair value of $145 million which meet the eligibility requirements for the Term Asset-Backed Securities Loan Facility, administered by the Federal Reserve Bank.
Investment securities in an unrealized loss position

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 December 31, 2012 and 2011:

      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, 2012                                  
U.S. Treasury $ ---   $ ---   $ ---   $ ---   $ ---   $ ---
Federal Agencies:                                  
  Mortgage-backed securities   44,836     (278)     ---     ---     44,836     (278)
  Other agencies   801     (1)     ---     ---     801     (1)
Total U.S. Government backed securities   45,637     (279)     ---     ---     45,637     (279)
Municipal securities   51,316     (2,007)     ---     ---     51,316     (2,007)
Private label CMO   22,793     ---     34,617     (5,076)     57,410     (5,076)
Asset-backed securities   28,089     (73)     108,660     (113,446)     136,749     (113,519)
Covered bonds   ---     ---     ---     ---     ---     ---
Corporate debt   138,792     (1,472)     119,620     (380)     258,412     (1,852)
Other securities   ---     ---     1,630     (35)     1,630     (35)
Total temporarily impaired securities $ 286,627   $ (3,831)   $ 264,527   $ (118,937)   $ 551,154   $ (122,768)
                                     

      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)
  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)
Realized securities gains and losses

The following table is a summary of realized securities gains and losses for the years ended December 31, 2012, 2011 and 2010:

(dollar amounts in thousands)   2012     2011     2010
  Gross gains on sales of securities $ 8,612   $ 18,641   $ 28,992
  Gross (losses) on sales of securities   (2,224)     (14,959)     (15,544)
Net gain (loss) on sales of securities $ 6,388   $ 3,682   $ 13,448
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 December 31, 2012 and 2011:

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 $ 75,557 $ 71,568   $ 22,793 $ --- $ 13,425 $ 3,801 $ 31,549
  Alt-A mortgage-backed securities   27,712   25,742     ---   25,742   ---   ---   ---
  Pooled-trust-preferred securities   195,760   84,296     ---   ---   22,338   ---   61,958
Total at December 31, 2012 $ 299,029 $ 181,606   $ 22,793 $ 25,742 $ 35,763 $ 3,801 $ 93,507
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, which are included in asset-backed securities, at December 31, 2012 and 2011. 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                    
(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 (2) Rating (3) Remaining (4) Collateral   Collateral Subordination (5)
Alesco II (1) $ 41,647 $ 30,440 $ 10,656 $ (19,784) C 30/35 11 % 12 % --- %
Alesco IV (1)   21,522   8,247   2,821   (5,426) C 31/39 12   17   ---  
ICONS   20,000   20,000   13,186   (6,814) BB 23/24 3   15   52  
I-Pre TSL II   30,346   30,268   22,338   (7,930) A 23/25 5   13   74  
MM Comm III   7,220   6,898   4,357   (2,541) B 6/10 5   9   24  
Pre TSL IX   5,000   3,955   1,533   (2,422) C 31/46 22   14   6  
Pre TSL X (1)   17,768   9,432   5,208   (4,224) C 34/50 27   14   ---  
Pre TSL XI (1)   25,428   22,005   6,998   (15,007) C 42/62 29   16   ---  
Pre TSL XIII (1)   28,932   22,701   7,152   (15,549) C 41/63 34   26   ---  
Reg Diversified (1)   25,500   6,908   380   (6,528) D 23/43 43   14   ---  
Soloso (1)   12,500   3,906   503   (3,403) C 39/64 30   24   ---  
Tropic III   31,000   31,000   9,164   (21,836) CC 23/42 36   28   29  
Total at December 31, 2012 $ 266,863 $ 195,760 $ 84,296 $ (111,464)                
Total at December 31, 2011 $ 268,853 $ 200,585 $ 73,809 $ (126,776)                
                                   
(1) Security was determined to have OTTI. As such, the book value is net of recorded credit impairment.
(2) The majority of securities have been in a continuous loss position for 12 months or longer.
(3) 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.
(4) Includes both banks and/or insurance companies.
(5) 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

For the periods ended December 31, 2012, 2011 and 2010, the following table summarizes by security type, OTTI recognized in the Consolidated Statements of Income for securities evaluated for impairment as described above:

 

      Year ended December 31,  
(dollar amounts in thousands)   2012     2011     2010  
Available-for-sale and other securities:                  
  Alt-A Mortgage-backed $ ---   $ (361)   $ (1,632)  
  Pooled-trust-preferred   ---     (3,798)     (4,922)  
  Private label CMO   (1,614)     (2,550)     (7,149)  
  Total debt securities   (1,614)     (6,709)     (13,703)  
  Equity securities   (5)     (654)     (19)  
Total available-for-sale and other securities $ (1,619)   $ (7,363)   $ (13,722)  
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 years ended December 31, 2012 and 2011 as follows:

    Year Ended December 31,
(dollar amounts in thousands)   2012     2011
Balance, beginning of year $ 56,764   $ 54,536
  Reductions from sales   (8,945)     (4,481)
  Credit losses not previously recognized   ---     42
  Additional credit losses   1,614     6,667
Balance, end of year $ 49,433   $ 56,764