Quarterly report pursuant to Section 13 or 15(d)

Available-for-Sale and Other Securities (Tables)

v2.4.0.8
Available-for-Sale and Other Securities (Tables)
 3 Months Ended
Jun. 30, 2013
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 June 30, 2013 and December 31, 2012:

        June 30, 2013   December 31, 2012
        Amortized           Amortized      
(dollar amounts in thousands)   Cost     Fair Value     Cost     Fair Value
  U.S. Treasury:                      
    Under 1 year $ ---   $ ---   $ ---   $ ---
    1-5 years   50,782     51,254     51,111     51,770
    6-10 years   507     521     508     539
    Over 10 years   1     3     1     2
  Total U.S. Treasury   51,290     51,778     51,620     52,311
  Federal agencies: mortgage-backed securities:                      
    Under 1 year   ---     ---     1     1
    1-5 years   162,968     164,652     182,722     185,792
    6-10 years   486,260     490,116     503,045     521,068
    Over 10 years   2,819,868     2,847,309     3,464,196     3,557,809
  Total Federal agencies: mortgage-backed securities   3,469,096     3,502,077     4,149,964     4,264,670
  Other agencies:                      
    Under 1 year   5,030     5,086     4,934     5,017
    1-5 years   305,021     311,716     304,769     314,149
    6-10 years   27,899     28,312     39,143     40,460
    Over 10 years   ---     ---     ---     ---
  Total other agencies   337,950     345,114     348,846     359,626
Total U.S. Government backed agencies   3,858,336     3,898,969     4,550,430     4,676,607
Municipal securities:                      
  Under 1 year   6,197     6,239     466     466
  1-5 years   179,502     183,855     173,300     177,593
  6-10 years   337,621     330,280     257,314     265,490
  Over 10 years   51,612     51,289     58,000     57,451
Total municipal securities   574,932     571,663     489,080     501,000
Private-label CMO:                      
  Under 1 year   ---     ---     ---     ---
  1-5 years   ---     ---     ---     ---
  6-10 years   2,713     2,767     7,394     7,567
  Over 10 years   54,032     50,067     68,163     64,001
Total private-label CMO   56,745     52,834     75,557     71,568
Asset-backed securities:                      
  Under 1 year   26,000     26,087     26,000     26,258
  1-5 years   540,312     545,047     506,319     514,616
  6-10 years   239,975     239,319     204,525     210,477
  Over 10 years   469,582     370,477     389,471     277,732
Total asset-backed securities   1,275,869     1,180,930     1,126,315     1,029,083
Covered bonds:                      
  Under 1 year   ---     ---     ---     ---
  1-5 years   281,341     286,911     282,080     290,625
  6-10 years   ---     ---     ---     ---
  Over 10 years   ---     ---     ---     ---
Total covered bonds   281,341     286,911     282,080     290,625
Corporate debt:                      
  Under 1 year   26,585     26,650     27,153     27,411
  1-5 years   258,262     265,391     458,516     468,077
  6-10 years   190,462     183,078     158,878     162,453
  Over 10 years   10,130     10,444     10,146     10,201
Total corporate debt   485,439     485,563     654,693     668,142
Other:                      
  Under 1 year   ---     ---     1,500     1,498
  1-5 years   3,900     3,770     2,400     2,400
  6-10 years   ---     ---     ---     ---
  Over 10 years   ---     ---     ---     ---
  Non-marketable equity securities   316,172     316,172     308,075     308,075
  Marketable equity securities   18,396     18,846     16,877     17,177
Total other   338,468     338,788     328,852     329,150
Total available-for-sale and other securities $ 6,871,130   $ 6,815,658   $ 7,507,007   $ 7,566,175
                           
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
June 30, 2013                      
U.S. Treasury $ 51,290   $ 488   $ ---   $ 51,778
Federal agencies:                      
  Mortgage-backed securities   3,469,096     50,969     (17,988)     3,502,077
  Other agencies   337,950     7,325     (161)     345,114
Total U.S. Government                      
  backed securities   3,858,336     58,782     (18,149)     3,898,969
Municipal securities   574,932     7,534     (10,803)     571,663
Private-label CMO   56,745     781     (4,692)     52,834
Asset-backed securities   1,275,869     7,875     (102,814)     1,180,930
Covered bonds   281,341     5,570     ---     286,911
Corporate debt   485,439     9,641     (9,517)     485,563
Other securities   338,468     523     (203)     338,788
Total available-for-sale and other securities $ 6,871,130   $ 90,706   $ (146,178)   $ 6,815,658
                         
            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   1,126,315     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
                         
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
June 30, 2013                                  
U.S. Treasury $ ---   $ ---   $ ---   $ ---   $ ---   $ ---
Federal agencies:                                  
  Mortgage-backed securities   1,067,989     (17,988)     ---     ---     1,067,989     (17,988)
  Other agencies   7,587     (161)     ---     ---     7,587     (161)
Total U.S. Government                                  
  backed securities   1,075,576     (18,149)     ---     ---     1,075,576     (18,149)
Municipal securities   244,896     (10,803)     ---     ---     244,896     (10,803)
Private-label CMO   26,089     (123)     21,748     (4,569)     47,837     (4,692)
Asset-backed securities   347,595     (10,065)     119,861     (92,749)     467,456     (102,814)
Covered bonds   ---     ---     ---     ---     ---     ---
Corporate debt   237,719     (9,517)     ---     ---     237,719     (9,517)
Other securities   3,020     (131)     2,749     (72)     5,769     (203)
                                     
Total temporarily impaired securities $ 1,934,895   $ (48,788)   $ 144,358   $ (97,390)   $ 2,079,253   $ (146,178)
                                     
      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)
Realized securities gains and losses

The following table is a summary of realized securities gains and losses for the three-month and six-month periods ended June 30, 2013 and 2012:

      Three Months Ended     Six Months Ended
      June 30,     June 30,
(dollar amounts in thousands)   2013     2012     2013     2012
  Gross gains on sales of securities $ 988   $ 704   $ 1,187   $ 1,483
  Gross (losses) on sales of securities   (378)     (101)     (390)     (256)
Net gain on sales of securities $ 610   $ 603   $ 797   $ 1,227
                         
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 June 30, 2013. 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                    
June 30, 2013                          
(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 $ 30,035 $ 11,686 $ (18,349) C 30/35 11 % 11 % --- %
Alesco IV (1)   21,735   8,246   4,621   (3,625) C 31/37 9   13   ---  
ICONS   20,000   20,000   14,520   (5,480) BB 22/23 3   13   50  
I-Pre TSL II   25,783   25,718   22,210   (3,508) A 22/24 5   10   74  
MM Comm III   7,162   6,843   5,086   (1,757) B 6/10 5   8   26  
Pre TSL IX (1)   5,000   3,955   1,734   (2,221) C 30/44 20   13   4  
Pre TSL X (1)   17,313   8,801   5,421   (3,380) C 34/48 25   12   ---  
Pre TSL XI (1)   25,000   21,336   8,367   (12,969) C 41/60 26   14   1  
Pre TSL XIII (1)   28,546   22,041   10,867   (11,174) C 43/61 27   21   5  
Reg Diversified (1)   25,500   6,908   518   (6,390) D 23/42 40   13   ---  
Soloso (1)   12,500   2,526   118   (2,408) C 37/64 32   22   ---  
Tropic III   31,000   31,000   11,442   (19,558) CC 24/41 30   17   34  
Total at June 30, 2013 $ 261,186 $ 187,409 $ 96,590 $ (90,819)                
Total at December 31, 2012 $ 266,863 $ 195,760 $ 84,296 $ (111,464)                
                                   
(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
      Three Months Ended     Six Months Ended
      June 30,     June 30,
(dollar amounts in thousands)   2013     2012     2013     2012
Available-for-sale and other securities:                      
  Alt-A Mortgage-backed $ ---   $ ---   $ ---   $ ---
  Pooled-trust-preferred   (1,020)     ---     (1,380)     ---
  Private label CMO   ---     (248)     (336)     (1,485)
  Total debt securities   (1,020)     (248)     (1,716)     (1,485)
  Equity securities   ---     (5)     ---     (5)
Total available-for-sale and other securities $ (1,020)   $ (253)   $ (1,716)   $ (1,490)
OTTI recognized in earnings on debt securities held by Huntington

The following table rolls forward the OTTI amounts recognized in earnings on debt securities held by Huntington for the three-month and six-month periods ended June 30, 2013 and 2012 as follows:

    Three Months Ended   Six Months Ended
    June 30,   June 30,
(dollar amounts in thousands)   2013     2012     2013     2012
Balance, beginning of period $ 50,129   $ 56,904   $ 49,433   $ 56,764
  Reductions from sales/maturities   (1,298)     ---     (1,298)     (1,097)
  Credit losses not previously recognized   ---     ---     ---     ---
  Additional credit losses   1,020     248     1,716     1,485
Balance, end of period $ 49,851   $ 57,152   $ 49,851   $ 57,152