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
Sep. 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 September 30, 2013 and December 31, 2012:

        September 30, 2013   December 31, 2012
        Amortized           Amortized      
(dollar amounts in thousands)   Cost     Fair Value     Cost     Fair Value
  U.S. Treasury:                      
    Under 1 year $ 50,614     51,030   $ ---   $ ---
    1-5 years   507     521     51,111     51,770
    6-10 years   ---     ---     508     539
    Over 10 years   1     3     1     2
  Total U.S. Treasury   51,122     51,554     51,620     52,311
  Federal agencies: mortgage-backed securities:                      
    Under 1 year   ---     ---     1     1
    1-5 years   174,631     176,076     182,722     185,792
    6-10 years   455,677     458,965     503,045     521,068
    Over 10 years   2,567,734     2,586,670     3,464,196     3,557,809
  Total Federal agencies: mortgage-backed securities   3,198,042     3,221,711     4,149,964     4,264,670
  Other agencies:                      
    Under 1 year   5,080     5,128     4,934     5,017
    1-5 years   303,788     310,437     304,769     314,149
    6-10 years   23,611     23,854     39,143     40,460
    Over 10 years   ---     ---     ---     ---
  Total other agencies   332,479     339,419     348,846     359,626
Total U.S. Government backed agencies   3,581,643     3,612,684     4,550,430     4,676,607
Municipal securities:                      
  Under 1 year   21,515     21,736     466     466
  1-5 years   168,071     172,716     173,300     177,593
  6-10 years   336,606     331,031     257,314     265,490
  Over 10 years   39,345     40,995     58,000     57,451
Total municipal securities   565,537     566,478     489,080     501,000
Private-label CMO:                      
  Under 1 year   ---     ---     ---     ---
  1-5 years   ---     ---     ---     ---
  6-10 years   2,293     2,396     7,394     7,567
  Over 10 years   51,423     48,370     68,163     64,001
Total private-label CMO   53,716     50,766     75,557     71,568
Asset-backed securities:                      
  Under 1 year   17,333     17,354     26,000     26,258
  1-5 years   477,629     481,841     506,319     514,616
  6-10 years   239,863     240,376     204,525     210,477
  Over 10 years   476,650     388,756     389,471     277,732
Total asset-backed securities   1,211,475     1,128,327     1,126,315     1,029,083
Covered bonds:                      
  Under 1 year   ---     ---     ---     ---
  1-5 years   280,969     286,924     282,080     290,625
  6-10 years   ---     ---     ---     ---
  Over 10 years   ---     ---     ---     ---
Total covered bonds   280,969     286,924     282,080     290,625
Corporate debt:                      
  Under 1 year   702     713     27,153     27,411
  1-5 years   257,667     266,984     458,516     468,077
  6-10 years   189,733     182,756     158,878     162,453
  Over 10 years   10,121     10,519     10,146     10,201
Total corporate debt   458,223     460,972     654,693     668,142
Other:                      
  Under 1 year   ---     ---     1,500     1,498
  1-5 years   3,900     3,774     2,400     2,400
  6-10 years   ---     ---     ---     ---
  Over 10 years   ---     ---     ---     ---
  Non-marketable equity securities   317,462     317,462     308,075     308,075
  Marketable equity securities   18,965     19,294     16,877     17,177
Total other   340,327     340,530     328,852     329,150
Total available-for-sale and other securities $ 6,491,890   $ 6,446,681   $ 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
September 30, 2013                      
U.S. Treasury $ 51,122   $ 432   $ ---   $ 51,554
Federal agencies:                      
  Mortgage-backed securities   3,198,042     45,997     (22,328)     3,221,711
  Other agencies   332,479     7,078     (138)     339,419
Total U.S. Government                      
  backed securities   3,581,643     53,507     (22,466)     3,612,684
Municipal securities   565,537     9,309     (8,368)     566,478
Private-label CMO   53,716     1,012     (3,962)     50,766
Asset-backed securities   1,211,475     7,434     (90,582)     1,128,327
Covered bonds   280,969     5,955     ---     286,924
Corporate debt   458,223     11,250     (8,501)     460,972
Other securities   340,327     373     (170)     340,530
Total available-for-sale and other securities $ 6,491,890   $ 88,840   $ (134,049)   $ 6,446,681
                         
            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
September 30, 2013                                  
U.S. Treasury $ ---   $ ---   $ ---   $ ---   $ ---   $ ---
Federal agencies:                                  
  Mortgage-backed securities   938,245     (22,328)     ---     ---     938,245     (22,328)
  Other agencies   6,510     (138)     ---     ---     6,510     (138)
Total U.S. Government                                  
  backed securities   944,755     (22,466)     ---     ---     944,755     (22,466)
Municipal securities   236,408     (8,368)     ---     ---     236,408     (8,368)
Private-label CMO   ---     ---     22,178     (3,962)     22,178     (3,962)
Asset-backed securities   360,373     (8,369)     114,901     (82,213)     475,274     (90,582)
Covered bonds   ---     ---     ---     ---     ---     ---
Corporate debt   191,113     (8,501)     ---     ---     191,113     (8,501)
Other securities   3,024     (126)     3,255     (44)     6,279     (170)
                                     
Total temporarily impaired securities $ 1,735,673   $ (47,830)   $ 140,334   $ (86,219)   $ 1,876,007   $ (134,049)
                                     
      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 nine-month periods ended September 30, 2013 and 2012:

      Three Months Ended     Nine Months Ended
      September 30,     September 30,
(dollar amounts in thousands)   2013     2012     2013     2012
  Gross gains on sales of securities $ 448   $ 6,253   $ 1,635   $ 7,736
  Gross (losses) on sales of securities   (264)     (1,968)     (654)     (2,224)
Net gain on sales of securities $ 184   $ 4,285   $ 981   $ 5,512
                         
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 September 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                    
September 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) $ 41,646 $ 29,830 $ 12,789 $ (17,041) C 30/34 10 % 9 % --- %
ICONS   20,000   20,000   15,192   (4,808) BB 22/23 3   13   52  
I-Pre TSL II   20,464   20,413   18,201   (2,212) A 21/23 5   10   77  
MM Comm III   7,162   6,843   5,229   (1,614) BB 6/10 5   9   27  
Pre TSL IX (1)   5,000   3,955   1,889   (2,066) C 30/44 20   13   4  
Pre TSL X (1)   17,149   8,551   5,702   (2,849) C 33/47 25   12   ---  
Pre TSL XI (1)   25,000   21,216   8,243   (12,973) C 41/60 28   15   ---  
Pre TSL XIII (1)   28,218   21,579   11,363   (10,216) C 44/61 28   22   4  
Reg Diversified (1)   25,500   6,908   561   (6,347) D 23/42 40   12   ---  
Soloso (1)   12,500   2,440   127   (2,313) C 36/63 32   22   ---  
Tropic III   31,000   31,000   12,629   (18,371) CCC+ 24/40 29   17   38  
Total at September 30, 2013 $ 233,639 $ 172,735 $ 91,925 $ (80,810)                
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     Nine Months Ended
      September 30,     September 30,
(dollar amounts in thousands)   2013     2012     2013     2012
Available-for-sale and other securities:                      
  Alt-A Mortgage-backed $ ---   $ ---   $ ---   $ ---
  Pooled-trust-preferred   (86)     ---     (1,466)     ---
  Private label CMO   ---     (116)     (336)     (1,601)
  Total debt securities   (86)     (116)     (1,802)     (1,601)
  Equity securities   ---     ---     ---     (5)
Total available-for-sale and other securities $ (86)   $ (116)   $ (1,802)   $ (1,606)
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 nine-month periods ended September 30, 2013 and 2012 as follows:

    Three Months Ended   Nine Months Ended
    September 30,   September 30,
(dollar amounts in thousands)   2013     2012     2013     2012
Balance, beginning of period $ 49,851   $ 57,152   $ 49,433   $ 56,764
  Reductions from sales/maturities   (11,886)     (7,848)     (13,184)     (8,945)
  Credit losses not previously recognized   ---     ---     ---     ---
  Additional credit losses   86     116     1,802     1,601
Balance, end of period $ 38,051   $ 49,420   $ 38,051   $ 49,420