AVAILABLE-FOR-SALE AND OTHER SECURITIES (Tables)
|
12 Months Ended |
Dec. 31, 2016 |
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| Investments, Debt and Equity Securities [Abstract] |
|
| Contractual maturities of investment securities |
Contractual maturities of available-for-sale and other securities as of December 31, 2016 and 2015 were:
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2016 |
|
2015 |
(dollar amounts in thousands) |
Amortized
Cost
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Fair
Value
|
Under 1 year |
$ |
223,789 |
|
|
$ |
221,495 |
|
|
$ |
333,891 |
|
|
$ |
332,980 |
|
After 1 year through 5 years |
1,147,510 |
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|
1,149,460 |
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|
1,184,454 |
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|
1,189,455 |
|
After 5 years through 10 years |
1,956,893 |
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|
1,962,345 |
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|
1,648,808 |
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|
1,645,759 |
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After 10 years |
11,884,812 |
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|
11,665,245 |
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|
5,259,855 |
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|
5,263,063 |
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Other securities: |
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Nonmarketable equity securities |
547,704 |
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|
547,704 |
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|
332,786 |
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|
332,786 |
|
Mutual funds |
15,286 |
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|
15,286 |
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|
10,604 |
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|
10,604 |
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Marketable equity securities |
861 |
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|
1,302 |
|
|
525 |
|
|
794 |
|
Total available-for-sale and other securities |
$ |
15,776,855 |
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|
$ |
15,562,837 |
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|
$ |
8,770,923 |
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|
$ |
8,775,441 |
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| Amortized cost, fair value, and gross unrealized gain and losses recognized in accumulated other comprehensive income |
The following tables provide amortized cost, fair value, and gross unrealized gains and losses recognized in OCI by investment category at December 31, 2016 and 2015:
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Unrealized |
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|
(dollar amounts in thousands) |
Amortized
Cost
|
|
Gross
Gains
|
|
Gross
Losses
|
|
Fair Value |
December 31, 2016 |
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|
|
|
|
|
U.S. Treasury |
$ |
5,480 |
|
|
$ |
17 |
|
|
$ |
— |
|
|
$ |
5,497 |
|
Federal agencies: |
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|
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Mortgage-backed securities |
10,851,461 |
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|
12,548 |
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|
(190,667 |
) |
|
10,673,342 |
|
Other agencies |
73,012 |
|
|
536 |
|
|
(6 |
) |
|
73,542 |
|
Total U.S. Treasury, Federal agency securities |
10,929,953 |
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|
13,101 |
|
|
(190,673 |
) |
|
10,752,381 |
|
Municipal securities |
3,260,428 |
|
|
28,431 |
|
|
(38,802 |
) |
|
3,250,057 |
|
Asset-backed securities |
824,124 |
|
|
1,492 |
|
|
(32,135 |
) |
|
793,481 |
|
Corporate debt |
194,537 |
|
|
4,161 |
|
|
(15 |
) |
|
198,683 |
|
Other securities |
567,813 |
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|
441 |
|
|
(19 |
) |
|
568,235 |
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Total available-for-sale and other securities |
$ |
15,776,855 |
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|
$ |
47,626 |
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|
$ |
(261,644 |
) |
|
$ |
15,562,837 |
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Unrealized |
|
|
(dollar amounts in thousands) |
Amortized
Cost |
|
Gross
Gains |
|
Gross
Losses |
|
Fair Value |
December 31, 2015 |
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|
|
|
|
|
U.S. Treasury |
$ |
5,457 |
|
|
$ |
15 |
|
|
$ |
— |
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|
$ |
5,472 |
|
Federal agencies: |
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|
|
|
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Mortgage-backed securities |
4,505,318 |
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|
30,078 |
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(13,708 |
) |
|
4,521,688 |
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Other agencies |
115,076 |
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|
888 |
|
|
(51 |
) |
|
115,913 |
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Total U.S. Treasury, Federal agency securities |
4,625,851 |
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|
30,981 |
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(13,759 |
) |
|
4,643,073 |
|
Municipal securities |
2,431,943 |
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|
51,558 |
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|
(27,105 |
) |
|
2,456,396 |
|
Asset-backed securities |
901,059 |
|
|
535 |
|
|
(40,181 |
) |
|
861,413 |
|
Corporate debt |
464,207 |
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|
4,824 |
|
|
(2,554 |
) |
|
466,477 |
|
Other securities |
347,863 |
|
|
271 |
|
|
(52 |
) |
|
348,082 |
|
Total available-for-sale and other securities |
$ |
8,770,923 |
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|
$ |
88,169 |
|
|
$ |
(83,651 |
) |
|
$ |
8,775,441 |
|
|
| Available for sale securities in an unrealized loss position |
The following tables provide detail on investment securities with unrealized losses aggregated by investment category and the length of time the individual securities have been in a continuous loss position at December 31, 2016 and 2015:
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Less than 12 Months |
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Over 12 Months |
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Total |
(dollar amounts in thousands) |
Fair Value |
|
Unrealized
Losses
|
|
Fair Value |
|
Unrealized
Losses
|
|
Fair Value |
|
Unrealized
Losses
|
December 31, 2016 |
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Federal agencies: |
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Mortgage-backed securities |
$ |
8,908,470 |
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|
$ |
(189,318 |
) |
|
$ |
41,706 |
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|
$ |
(1,349 |
) |
|
$ |
8,950,176 |
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|
$ |
(190,667 |
) |
Other agencies |
924 |
|
|
(6 |
) |
|
— |
|
|
— |
|
|
924 |
|
|
(6 |
) |
Total Federal agency securities |
8,909,394 |
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|
(189,324 |
) |
|
41,706 |
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|
(1,349 |
) |
|
8,951,100 |
|
|
(190,673 |
) |
Municipal securities |
1,412,152 |
|
|
(29,175 |
) |
|
272,292 |
|
|
(9,627 |
) |
|
1,684,444 |
|
|
(38,802 |
) |
Asset-backed securities |
361,185 |
|
|
(3,043 |
) |
|
178,924 |
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(29,092 |
) |
|
540,109 |
|
|
(32,135 |
) |
Corporate debt |
3,567 |
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|
(15 |
) |
|
200 |
|
|
— |
|
|
3,767 |
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|
(15 |
) |
Other securities |
790 |
|
|
(11 |
) |
|
1,492 |
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|
(8 |
) |
|
2,282 |
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|
(19 |
) |
Total temporarily impaired securities |
$ |
10,687,088 |
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|
$ |
(221,568 |
) |
|
$ |
494,614 |
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|
$ |
(40,076 |
) |
|
$ |
11,181,702 |
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|
$ |
(261,644 |
) |
|
| Realized securities gains and losses |
The following table is a summary of realized securities gains and losses for the years ended December 31, 2016, 2015, and 2014:
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Year ended December 31, |
(dollar amounts in thousands) |
2016 |
|
2015 |
|
2014 |
Gross gains on sales of securities |
$ |
23,095 |
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|
$ |
6,730 |
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|
$ |
17,729 |
|
Gross (losses) on sales of securities |
(21,060 |
) |
|
(3,546 |
) |
|
(175 |
) |
Net gain (loss) on sales of securities |
$ |
2,035 |
|
|
$ |
3,184 |
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|
$ |
17,554 |
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|
| Credit ratings on selected investment securities |
The following table summarizes the relevant characteristics of the Company's CDO securities portfolio, which are included in asset-backed securities, at December 31, 2016 and 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 Securities
(dollar amounts in thousands)
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Deal Name |
Par Value |
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Amortized
Cost
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Fair
Value
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Unrealized
Loss (2)
|
Lowest
Credit
Rating (3)
|
# of Issuers
Currently
Performing/
Remaining (4)
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Actual
Deferrals
and
Defaults
as a % of
Original
Collateral
|
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Expected
Defaults as
a % of
Remaining
Performing
Collateral
|
|
Excess
Subordination (5)
|
ICONS |
18,594 |
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|
18,594 |
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|
15,307 |
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(3,287 |
) |
|
BB |
|
19/21 |
|
7 |
|
13 |
|
54 |
MM Comm III |
4,573 |
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|
4,369 |
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|
3,618 |
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|
(751 |
) |
|
BB |
|
5/8 |
|
5 |
|
6 |
|
38 |
Pre TSL IX (1) |
5,000 |
|
|
3,955 |
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|
3,253 |
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|
(702 |
) |
|
C |
|
27/37 |
|
16 |
|
9 |
|
8 |
Pre TSL XI (1) |
25,000 |
|
|
19,576 |
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|
15,767 |
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|
(3,809 |
) |
|
C |
|
43/53 |
|
14 |
|
8 |
|
14 |
Pre TSL XIII (1) |
27,530 |
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|
19,106 |
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|
17,146 |
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(1,960 |
) |
|
C |
|
45/54 |
|
9 |
|
11 |
|
29 |
Reg Diversified (1) |
25,500 |
|
|
4,610 |
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|
1,752 |
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(2,858 |
) |
|
D |
|
20/37 |
|
35 |
|
8 |
|
— |
Tropic III |
31,000 |
|
|
31,000 |
|
|
19,160 |
|
|
(11,840 |
) |
|
BB |
|
28/37 |
|
16 |
|
7 |
|
42 |
Total at December 31, 2016 |
$ |
137,197 |
|
|
$ |
101,210 |
|
|
$ |
76,003 |
|
|
$ |
(25,207 |
) |
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|
|
|
|
|
|
|
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Total at December 31, 2015 |
$ |
179,574 |
|
|
$ |
131,991 |
|
|
$ |
100,338 |
|
|
$ |
(31,654 |
) |
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(1) |
Security was determined to have OTTI. As such, the amortized cost is net of recorded credit impairment. |
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(2) |
The majority of securities have been in a continuous loss position for 12 months or longer. |
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(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. |
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(4) |
Includes both banks and/or insurance companies. |
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(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. |
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| OTTI recognized in earnings |
For the periods ended December 31, 2016, 2015, and 2014, 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:
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Year ended December 31, |
(dollar amounts in thousands) |
2016 |
|
2015 |
|
2014 |
Available-for-sale and other securities: |
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|
|
|
Collateralized Debt Obligations |
$ |
— |
|
|
$ |
(2,440 |
) |
|
$ |
— |
|
Municipal Securities |
(2,119 |
) |
|
— |
|
|
— |
|
Total available-for-sale and other securities |
$ |
(2,119 |
) |
|
$ |
(2,440 |
) |
|
$ |
— |
|
The following table rolls forward the OTTI recognized in earnings on debt securities held by Huntington for the years ended December 31, 2016, and 2015 as follows:
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Year Ended December 31, |
(dollar amounts in thousands) |
2016 |
|
2015 |
Balance, beginning of year |
$ |
18,368 |
|
|
$ |
30,869 |
|
Reductions from sales |
(8,690 |
) |
|
(14,941 |
) |
Credit losses not previously recognized |
2,119 |
|
|
— |
|
Additional credit losses |
— |
|
|
2,440 |
|
Balance, end of year |
$ |
11,797 |
|
|
$ |
18,368 |
|
|