Annual report pursuant to Section 13 and 15(d)

Available-for-Sale and Other Securities (Tables)

v2.4.0.8
Available-for-Sale and Other Securities (Tables)
 12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Securities [Abstract]    
Contractual maturities of investment securities

Contractual maturities of available-for-sale and other securities as of December 31, 2013 and 2012 were:

      2013     2012
      Amortized     Fair     Amortized     Fair
(dollar amounts in thousands)   Cost     Value     Cost     Value
Under 1 year $ 263,366   $ 262,752   $ 60,054   $ 60,651
1 - 5 years   1,665,644     1,697,234     1,961,217     2,005,022
6 - 10 years   1,440,056     1,433,303     1,170,807     1,208,054
Over 10 years   3,662,328     3,577,502     3,989,977     3,967,196
Other securities:                      
  Nonmarketable equity securities   320,991     320,991     308,075     308,075
  Marketable equity securities   16,522     16,971     16,877     17,177
Total available-for-sale and other securities $ 7,368,907   $ 7,308,753   $ 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
December 31, 2013                      
U.S. Treasury $ 51,301   $ 303   $ ---   $ 51,604
Federal agencies:                      
  Mortgage-backed securities   3,562,444     42,319     (38,542)     3,566,221
  Other agencies   313,877     6,105     (94)     319,888
Total U.S. government backed securities   3,927,622     48,727     (38,636)     3,937,713
Municipal securities (1)   1,140,263     18,825     (13,096)     1,145,992
Private-label CMO   51,238     1,188     (3,322)     49,104
Asset-backed securities   1,172,284     6,771     (88,015)     1,091,040
Covered bonds   280,595     5,279     ---     285,874
Corporate debt   455,493     11,241     (9,494)     457,240
Other securities   341,412     511     (133)     341,790
Total available-for-sale and other securities $ 7,368,907   $ 92,542   $ (152,696)   $ 7,308,753
                         

                         
            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 (2)   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) Effective December 31, 2013 approximately $600.4 million of direct purchase municipal instruments were reclassified from C&I loans to available-for-sale securities.
                       
(2) 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.
  
Available for sale securities in an unrealized loss position table text block
      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, 2013                                  
U.S. Treasury $ ---   $ ---   $ ---   $ ---   $ ---   $ ---
Federal Agencies:                                  
  Mortgage-backed securities   1,628,454     (37,174)     12,682     (1,368)     1,641,136     (38,542)
  Other agencies   2,069     (94)     ---     ---     2,069     (94)
Total U.S. Government backed securities   1,630,523     (37,268)     12,682     (1,368)     1,643,205     (38,636)
Municipal securities   551,114     (12,395)     7,531     (701)     558,645     (13,096)
Private label CMO   ---     ---     22,639     (3,322)     22,639     (3,322)
Asset-backed securities   391,665     (9,720)     107,419     (78,295)     499,084     (88,015)
Corporate debt   146,308     (7,729)     26,155     (1,765)     172,463     (9,494)
Other securities   3,078     (72)     2,530     (61)     5,608     (133)
Total temporarily impaired securities $ 2,722,688   $ (67,184)   $ 178,956   $ (85,512)   $ 2,901,644   $ (152,696)
                                     
      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)
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 years ended December 31, 2013, 2012, and 2011:

(dollar amounts in thousands)   2013     2012     2011
  Gross gains on sales of securities $ 2,932   $ 8,612   $ 18,641
  Gross (losses) on sales of securities   (712)     (2,224)     (14,959)
Net gain (loss) on sales of securities $ 2,220   $ 6,388   $ 3,682
 
Credit Ratings on Selected Investment Securities

The following table presents the credit ratings for our CDO and private label CMO securities as of December 31, 2013 and 2012:

Credit Ratings of Selected Investment Securities            
(dollar amounts in thousands)             Average Credit Rating of Fair Value Amount (1)
      Amortized                          
      Cost   Fair Value     AAA   AA +/-   A +/-   BBB +/-   <BBB-
  Private-label CMO securities $ 51,238 $ 49,104   $ 16,964 $ --- $ --- $ 11,785 $ 20,355
  Collateralized debt obligations   161,730   84,136     ---   ---   17,855   ---   66,281
Total at December 31, 2013 $ 212,968 $ 133,240   $ 16,964 $ --- $ 17,855 $ 11,785 $ 86,636
Total at December 31, 2012 $ 299,029 $ 181,606   $ 22,793 $ 25,742 $ 35,763 $ 3,801 $ 93,507
                                 
(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 CDO securities portfolio, which are included in asset-backed securities, at December 31, 2013 and 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.

Collateralized Debt Obligation 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) $ 41,646 $ 29,629 $ 12,756 $ (16,873) C 29/33 10 % 9 % --- %
ICONS   20,000   20,000   15,208   (4,792) BB 21/22 3   14   52  
I-Pre TSL II   20,059   20,009   17,855   (2,154) A 21/23 5   10   78  
MM Comm III   5,669   5,417   4,007   (1,410) BB 5/9 5   9   33  
Pre TSL IX   5,000   3,955   1,955   (2,000) C 29/43 20   13   4  
Pre TSL XI (1)   25,000   21,098   8,130   (12,968) C 41/60 28   15   ---  
Pre TSL XIII (1)   28,045   21,274   10,996   (10,278) C 43/61 29   23   4  
Reg Diversified (1)   25,500   6,908   589   (6,319) D 23/42 40   12   ---  
Soloso (1)   12,500   2,440   138   (2,302) C 36/63 32   23   ---  
Tropic III   31,000   31,000   12,502   (18,498) CCC 25/40 26   14   38  
Total at December 31, 2013 $ 214,419 $ 161,730 $ 84,136 $ (77,594)                
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

For the periods ended December 31, 2013, 2012 and 2011, the following table summarizes by security type, the total OTTI losses recognized in the Consolidated Statements of Income for securities evaluated for impairment as described above:

 

      Year ended December 31,  
(dollar amounts in thousands)   2013     2012     2011  
Available-for-sale and other securities:                  
  Alt-A Mortgage-backed $ ---   $ ---   $ (361)  
  Collateralized Debt Obligations   (1,466)     ---     (3,798)  
  Private label CMO   (336)     (1,614)     (2,550)  
  Total debt securities   (1,802)     (1,614)     (6,709)  
  Equity securities   ---     (5)     (654)  
Total available-for-sale and other securities $ (1,802)   $ (1,619)   $ (7,363)  
 
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, 2013 and 2012 as follows:

    Year Ended December 31,
(dollar amounts in thousands)   2013     2012
Balance, beginning of year $ 49,433   $ 56,764
  Reductions from sales   (20,366)     (8,945)
  Credit losses not previously recognized   ---     ---
  Additional credit losses   1,802     1,614
Balance, end of year $ 30,869   $ 49,433