Quarterly report pursuant to Section 13 or 15(d)

Available-for-Sale and Other Securities (Tables)

v2.4.1.9
Available-for-Sale and Other Securities (Tables)
 3 Months Ended
Mar. 31, 2015
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 March 31, 2015 and December 31, 2014:

March 31, 2015 December 31, 2014
Amortized Amortized
(dollar amounts in thousands) Cost Fair Value Cost Fair Value
U.S. Treasury:
Under 1 year $ 5,835 $ 5,835 $ --- $ ---
1-5 years 5,440 5,520 5,435 5,452
6-10 years --- --- --- ---
Over 10 years --- --- --- ---
Total U.S. Treasury 11,275 11,355 5,435 5,452
Federal agencies: mortgage-backed securities:
Under 1 year 36,620 36,734 47,023 47,190
1-5 years 209,862 214,102 216,775 221,078
6-10 years 180,422 183,552 184,576 186,938
Over 10 years 5,263,901 5,349,284 4,825,525 4,867,495
Total Federal agencies: mortgage-backed securities 5,690,805 5,783,672 5,273,899 5,322,701
Other agencies:
Under 1 year 32,248 32,328 33,047 33,237
1-5 years 9,071 9,555 9,122 9,575
6-10 years 119,696 122,886 103,530 105,019
Over 10 years 181,131 185,646 204,016 203,712
Total other agencies 342,146 350,415 349,715 351,543
Total U.S. Treasury, Federal agency, and other agency securities 6,044,226 6,145,442 5,629,049 5,679,696
Municipal securities:
Under 1 year 277,551 271,172 256,399 255,835
1-5 years 322,135 326,618 269,385 274,003
6-10 years 996,655 1,004,624 938,780 945,954
Over 10 years 445,189 463,791 376,747 392,777
Total municipal securities 2,041,530 2,066,205 1,841,311 1,868,569
Private-label CMO:
Under 1 year --- --- --- ---
1-5 years --- --- --- ---
6-10 years 1,195 1,245 1,314 1,371
Over 10 years 40,847 39,009 42,416 40,555
Total private-label CMO 42,042 40,254 43,730 41,926
Asset-backed securities:
Under 1 year --- --- --- ---
1-5 years 165,319 166,277 228,852 229,364
6-10 years 123,591 124,807 144,163 144,193
Over 10 years 589,189 540,999 641,984 582,441
Total asset-backed securities 878,099 832,083 1,014,999 955,998
Corporate debt:
Under 1 year 38,801 39,075 18,767 18,953
1-5 years 313,507 324,116 314,773 323,503
6-10 years 125,689 126,429 145,611 143,720
Over 10 years --- --- --- ---
Total corporate debt 477,997 489,620 479,151 486,176
Other:
Under 1 year --- --- 250 250
1-5 years 3,950 3,906 3,150 3,066
6-10 years --- --- --- ---
Over 10 years --- --- --- ---
Non-marketable equity securities 331,770 331,771 331,559 331,559
Mutual funds 11,830 11,843 16,151 16,161
Marketable equity securities 536 1,275 536 1,269
Total other 348,086 348,795 351,646 352,305
Total available-for-sale and other securities $ 9,831,980 $ 9,922,399 $ 9,359,886 $ 9,384,670
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
March 31, 2015
U.S. Treasury $ 11,275 $ 80 $ --- $ 11,355
Federal agencies:
Mortgage-backed securities 5,690,805 100,113 (7,246) 5,783,672
Other agencies 342,146 8,270 (1) 350,415
Total U.S. Treasury, Federal agency securities 6,044,226 108,463 (7,247) 6,145,442
Municipal securities 2,041,530 40,512 (15,837) 2,066,205
Private-label CMO 42,042 1,116 (2,904) 40,254
Asset-backed securities 878,099 4,626 (50,642) 832,083
Corporate debt 477,997 12,167 (544) 489,620
Other securities 348,086 753 (44) 348,795
Total available-for-sale and other securities $ 9,831,980 $ 167,637 $ (77,218) $ 9,922,399
Unrealized
Amortized Gross Gross Fair
(dollar amounts in thousands) Cost Gains Losses Value
December 31, 2014
U.S. Treasury $ 5,435 $ 17 $ --- $ 5,452
Federal agencies:
Mortgage-backed securities 5,273,899 63,906 (15,104) 5,322,701
Other agencies 349,715 2,871 (1,043) 351,543
Total U.S. Treasury, Federal agency securities 5,629,049 66,794 (16,147) 5,679,696
Municipal securities 1,841,311 37,398 (10,140) 1,868,569
Private-label CMO 43,730 1,116 (2,920) 41,926
Asset-backed securities 1,014,999 2,061 (61,062) 955,998
Corporate debt 479,151 9,442 (2,417) 486,176
Other securities 351,646 743 (84) 352,305
Total available-for-sale and other securities $ 9,359,886 $ 117,554 $ (92,770) $ 9,384,670
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
March 31, 2015
Federal agencies:
Mortgage-backed securities 183,977 (630) 310,854 (6,616) 494,831 (7,246)
Other agencies 600 (1) --- --- 600 (1)
Total Federal agency securities 184,577 (631) 310,854 (6,616) 495,431 (7,247)
Municipal securities 610,486 (14,089) 57,696 (1,748) 668,182 (15,837)
Private-label CMO --- --- 22,491 (2,904) 22,491 (2,904)
Asset-backed securities 61,741 (125) 278,236 (50,517) 339,977 (50,642)
Corporate debt 31,556 (28) 22,224 (516) 53,780 (544)
Other securities 773 (27) 1,483 (17) 2,256 (44)
Total temporarily impaired securities $ 889,133 $ (14,900) $ 692,984 $ (62,318) $ 1,582,117 $ (77,218)
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, 2014
Federal agencies:
Mortgage-backed securities 501,858 (1,909) 527,280 (13,195) 1,029,138 (15,104)
Other agencies 159,708 (1,020) 1,281 (23) 160,989 (1,043)
Total Federal agency securities 661,566 (2,929) 528,561 (13,218) 1,190,127 (16,147)
Municipal securities 568,619 (9,127) 96,426 (1,013) 665,045 (10,140)
Private-label CMO --- --- 22,650 (2,920) 22,650 (2,920)
Asset-backed securities 157,613 (641) 325,691 (60,421) 483,304 (61,062)
Corporate debt 49,562 (252) 88,398 (2,165) 137,960 (2,417)
Other securities --- --- 1,416 (84) 1,416 (84)
Total temporarily impaired securities $ 1,437,360 $ (12,949) $ 1,063,142 $ (79,821) $ 2,500,502 $ (92,770)
Realized securities gains and losses

The following table is a summary of realized securities gains and losses for the three-month periods ended March 31, 2015 and 2014:

Three Months Ended
March 31,
(dollar amounts in thousands) 2015 2014
Gross gains on sales of securities $ --- $ 16,990
Gross (losses) on sales of securities --- (20)
Net gain on sales of securities $ --- $ 16,970
Trust Preferred Securities Data

The fair values of the private label CMO and CDO assets have been impacted by various market conditions. The unrealized losses were primarily the result of wider liquidity spreads on asset-backed securities and increased market volatility on non-agency mortgage that are collateralized by certain mortgage loans. In addition, the expected average lives of the asset-backed securities backed by trust-preferred securities have been extended, due to changes in the expectations of when the underlying securities would be repaid. The contractual terms and / or cash flows of the investments do not permit the issuer to settle the securities at a price less than the amortized cost. Huntington does not intend to sell, nor does it believe it will be required to sell these securities until the amortized cost is recovered, which may be maturity and; therefore, does not consider them to be other-than-temporarily impaired at March 31, 2015.

The following table summarizes the relevant characteristics of our CDO securities portfolio, which are included in asset-backed securities, at March 31, 2015. Each security is part of a pool of issuers and supports a more senior tranche of securities except for the MM Comm III securities which are the most senior class.

Collateralized Debt Obligation Data
March 31, 2015
(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 $ 28,636 $ 18,383 $ (10,253) C 29/32 8 % 7 % --- %
ICONS 19,801 19,801 15,767 (4,034) BB 19/21 7 16 56
MM Comm III 5,584 5,335 4,369 (966) BB 5/9 5 9 28
Pre TSL IX (1) 5,000 3,955 2,662 (1,293) C 28/40 19 9 4
Pre TSL XI (1) 25,000 20,517 13,595 (6,922) C 42/55 16 9 9
Pre TSL XIII (1) 27,530 20,127 13,952 (6,175) C 41/56 21 21 6
Reg Diversified (1) 25,500 6,287 1,591 (4,696) D 25/41 34 7 ---
Soloso (1) 12,500 2,440 468 (1,972) C 36/60 29 19 ---
Tropic III 31,000 31,000 18,368 (12,632) CCC+ 30/40 19 8 39
Total at March 31, 2015 $ 193,561 $ 138,098 $ 89,155 $ (48,943)
Total at December 31, 2014 $ 193,597 $ 139,194 $ 82,738 $ (56,456)
(1) Security was determined to have OTTI. As such, the book value is net of recorded credit impairment.
(2) These securities have been in a continuous loss position for longer than 12 months.
(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.