Annual report pursuant to Section 13 and 15(d)

Other Comprehensive Income

v2.4.1.9
Other Comprehensive Income
 12 Months Ended
Dec. 31, 2014
Other Comprehensive Income [Abstract]  
OTHER COMPREHENSIVE INCOME

11. OTHER COMPREHENSIVE INCOME

The components of Huntington’s OCI in the three years ended December 31, 2014, 2013, and 2012, were as follows:

2014
Tax (expense)
(dollar amounts in thousands) Pretax Benefit After-tax
Noncredit-related impairment recoveries (losses) on debt securities not expected to be sold $ 13,583 $ (4,803) $ 8,780
Unrealized holding gains (losses) on available-for-sale debt securities arising during the period 86,618 (30,914) 55,704
Less: Reclassification adjustment for net gains (losses) included in net income (15,559) 5,446 (10,113)
Net change in unrealized holding gains (losses) on available-for-sale debt securities 84,642 (30,271) 54,371
Net change in unrealized holding gains (losses) on available-for-sale equity securities 295 (103) 192
Unrealized gains and losses on derivatives used in cash flow hedging relationships arising during the period 14,141 (4,949) 9,192
Less: Reclassification adjustment for net losses (gains) included in net income (3,971) 1,390 (2,581)
Net change in unrealized gains (losses) on derivatives used in cash flow hedging relationships 10,170 (3,559) 6,611
Change in pension and post-retirement obligations (106,857) 37,400 (69,457)
Total other comprehensive income (loss) $ (11,750) $ 3,467 $ (8,283)
2013
Tax (expense)
(dollar amounts in thousands) Pretax Benefit After-tax
Noncredit-related impairment recoveries (losses) on debt securities not expected to be sold $ 235 $ (82) $ 153
Unrealized holding gains (losses) on available-for-sale debt securities arising during the period (125,919) 44,191 (81,728)
Less: Reclassification adjustment for net gains (losses) included in net income 6,211 (2,174) 4,037
Net change in unrealized holding gains (losses) on available-for-sale debt securities (119,473) 41,935 (77,538)
Net change in unrealized holding gains (losses) on available-for-sale equity securities 151 (53) 98
Unrealized gains and losses on derivatives used in cash flow hedging relationships arising during the period (86,240) 30,184 (56,056)
Less: Reclassification adjustment for net (gains) losses included in net income (15,188) 5,316 (9,872)
Net change in unrealized (losses) gains on derivatives used in cash flow hedging relationships (101,428) 35,500 (65,928)
Re-measurement obligation 136,452 (47,758) 88,694
Defined benefit pension items (13,106) 4,588 (8,518)
Net change in pension and post-retirement obligations 123,346 (43,170) 80,176
Total other comprehensive income (loss) $ (97,404) $ 34,212 $ (63,192)
2012
Tax (expense)
(dollar amounts in thousands) Pretax Benefit After-tax
Noncredit-related impairment recoveries (losses) on debt securities not expected to be sold $ 19,215 $ (6,725) $ 12,490
Unrealized holding gains (losses) on available-for-sale debt securities arising during the period 90,318 (32,137) 58,181
Less: Reclassification adjustment for net gains (losses) included in net income (4,769) 1,669 (3,100)
Net change in unrealized holding gains (losses) on available-for-sale debt securities 104,764 (37,193) 67,571
Net change in unrealized holding gains (losses) on available-for-sale equity securities 344 (120) 224
Unrealized gains and losses on derivatives used in cash flow hedging relationships arising during the period (5,476) 1,907 (3,569)
Less: Reclassification adjustment for net losses (gains) losses included in net income 14,992 (5,237) 9,755
Net change in unrealized gains (losses) on derivatives used in cash flow hedging relationships 9,516 (3,330) 6,186
Net actuarial gains (losses) arising during the year (105,527) 36,934 (68,593)
Amortization of net actuarial loss and prior service cost included in income 27,013 (9,455) 17,558
Net change in pension and post-retirement obligations (78,514) 27,479 (51,035)
Total other comprehensive income (loss) $ 36,110 $ (13,164) $ 22,946

Activity in accumulated OCI for the three years ended December 31, were as follows:

(dollar amounts in thousands) Unrealized gains and (losses) on debt securities (1) Unrealized gains and (losses) on equity securities Unrealized gains and (losses) on cash flow hedging derivatives Unrealized gains (losses) for pension and other post-retirement obligations Total
Balance, December 31, 2012 38,304 194 47,084 (236,399) (150,817)
Other comprehensive income before reclassifications (81,575) 98 (56,056) 88,694 (48,839)
Amounts reclassified from accumulated OCI to earnings 4,037 --- (9,872) (8,518) (14,353)
Period change (77,538) 98 (65,928) 80,176 (63,192)
Balance, December 31, 2013 (39,234) 292 (18,844) (156,223) (214,009)
Other comprehensive income before reclassifications 64,484 192 9,192 --- 73,868
Amounts reclassified from accumulated OCI to earnings (10,113) --- (2,581) (69,457) (82,151)
Period change 54,371 192 6,611 (69,457) (8,283)
Balance, December 31, 2014 $ 15,137 $ 484 $ (12,233) $ (225,680) $ (222,292)
(1) Amount at December 31, 2014 includes $0.8 million of net unrealized gains on securities transferred from the available-for-sale securities portfolio to the held-to-maturity securities portfolio in prior years. The net unrealized gains will be recognized in earnings over the remaining life of the security using the effective interest method.

The following table presents the reclassification adjustments out of accumulated OCI included in net income and the impacted line items as listed on the Consolidated Statements of Income for the year ended December 31, 2014:

Reclassifications out of accumulated OCI
Amounts reclassed Location of net gain (loss)
Accumulated OCI components from accumulated OCI reclassified from accumulated OCI into earnings
(dollar amounts in thousands) 2014 2013
Gains (losses) on debt securities:
Amortization of unrealized gains (losses) $ 597 $ 482 Interest income - held-to-maturity securities - taxable
Realized gain (loss) on sale of securities 14,962 (4,891) Noninterest income - net gains (losses) on sale of securities
OTTI recorded --- (1,802) Noninterest income - net gains (losses) on sale of securities
15,559 (6,211) Total before tax
(5,446) 2,174 Tax (expense) benefit
$ 10,113 $ (4,037) Net of tax
Gains (losses) on cash flow hedging relationships:
Interest rate contracts $ 4,064 $ 14,979 Interest and fee income - loans and leases
Interest rate contracts --- 209 Interest and fee income - investment securities
Interest rate contracts (93) --- Noninterest expense - other income
3,971 15,188 Total before tax
(1,390) (5,316) Tax (expense) benefit
$ 2,581 $ 9,872 Net of tax
Amortization of defined benefit pension and post-retirement items:
Actuarial gains (losses) $ 106,857 $ (22,293) Noninterest expense - personnel costs
Prior service costs --- 3,454 Noninterest expense - personnel costs
Other --- (919) Noninterest expense - personnel costs
Curtailment --- 32,864 Noninterest expense - personnel costs
106,857 13,106 Total before tax
(37,400) (4,588) Tax (expense) benefit
$ 69,457 $ 8,518 Net of tax