Quarterly report pursuant to Section 13 or 15(d)

AVAILABLE-FOR-SALE AND OTHER SECURITIES (Tables)

v3.7.0.1
AVAILABLE-FOR-SALE AND OTHER SECURITIES (Tables)
 6 Months Ended
Jun. 30, 2017
Investments, Debt and Equity Securities [Abstract]  
Contractual maturities of investment securities
Listed below are the contractual maturities of available-for-sale and other securities at June 30, 2017 and December 31, 2016:
 
June 30, 2017
 
December 31, 2016
(dollar amounts in thousands)
Amortized
Cost
 
Fair Value
 
Amortized
Cost
 
Fair Value
U.S. Treasury, Federal agency, and other agency securities:
 
 
 
 
 
 
 
U.S. Treasury:
 
 
 
 
 
 
 
1 year or less
$
10,139

 
$
10,139

 
$
4,978

 
$
4,988

After 1 year through 5 years
502

 
505

 
502

 
509

After 5 years through 10 years
—

 
—

 
—

 
—

After 10 years
—

 
—

 
—

 
—

Total U.S. Treasury
10,641

 
10,644

 
5,480

 
5,497

Federal agencies: mortgage-backed securities:
 
 
 
 
 
 
 
1 year or less
—

 
—

 
—

 
—

After 1 year through 5 years
28,085

 
27,891

 
46,591

 
46,762

After 5 years through 10 years
200,334

 
199,224

 
173,941

 
176,404

After 10 years
10,536,086

 
10,396,940

 
10,630,929

 
10,450,176

Total Federal agencies: mortgage-backed securities
10,764,505

 
10,624,055

 
10,851,461

 
10,673,342

Other agencies:
 
 
 
 
 
 
 
1 year or less
4,103

 
4,142

 
4,302

 
4,367

After 1 year through 5 years
9,498

 
9,647

 
5,092

 
5,247

After 5 years through 10 years
86,049

 
86,502

 
63,618

 
63,928

After 10 years
—

 
—

 
—

 
—

Total other agencies
99,650

 
100,291

 
73,012

 
73,542

Total U.S. Treasury, Federal agency, and other agency securities
10,874,796

 
10,734,990

 
10,929,953

 
10,752,381

Municipal securities:
 
 
 
 
 
 
 
1 year or less
120,216

 
121,345

 
169,636

 
166,887

After 1 year through 5 years
1,113,974

 
1,123,450

 
933,893

 
933,903

After 5 years through 10 years
1,493,652

 
1,508,930

 
1,463,459

 
1,464,583

After 10 years
555,096

 
558,775

 
693,440

 
684,684

Total municipal securities
3,282,938

 
3,312,500

 
3,260,428

 
3,250,057

Asset-backed securities:
 
 
 
 
 
 
 
1 year or less
—

 
—

 
—

 
—

After 1 year through 5 years
80,018

 
80,177

 
80,700

 
80,560

After 5 years through 10 years
144,969

 
146,256

 
223,352

 
224,565

After 10 years
389,154

 
368,366

 
520,072

 
488,356

Total asset-backed securities
614,141

 
594,799

 
824,124

 
793,481

Corporate debt:
 
 
 
 
 
 
 
1 year or less
3,238

 
3,268

 
43,223

 
43,603

After 1 year through 5 years
64,369

 
65,808

 
78,430

 
80,196

After 5 years through 10 years
49,546

 
51,878

 
32,523

 
32,865

After 10 years
21,386

 
23,081

 
40,361

 
42,019

Total corporate debt
138,539

 
144,035

 
194,537

 
198,683

Other:
 
 
 
 
 
 
 
1 year or less
3,151

 
3,142

 
1,650

 
1,650

After 1 year through 5 years
800

 
790

 
2,302

 
2,283

After 5 years through 10 years
—

 
—

 
—

 
—

After 10 years
94

 
94

 
10

 
10

Nonmarketable equity securities
585,472

 
585,471

 
547,704

 
547,704

Mutual funds
11,184

 
11,184

 
15,286

 
15,286

Marketable equity securities
861

 
1,301

 
861

 
1,302

Total other
601,562

 
601,982

 
567,813

 
568,235

Total available-for-sale and other securities
$
15,511,976

 
$
15,388,306

 
$
15,776,855

 
$
15,562,837

Amortized cost, fair value, and gross unrealized gains 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 June 30, 2017 and December 31, 2016:
 
 
 
Unrealized
 
 
(dollar amounts in thousands)
Amortized
Cost
 
Gross
Gains
 
Gross
Losses
 
Fair Value
June 30, 2017
 
 
 
 
 
 
 
U.S. Treasury
$
10,641

 
$
3

 
$
—

 
$
10,644

Federal agencies:
 
 
 
 
 
 
 
Mortgage-backed securities
10,764,505

 
8,652

 
(149,102
)
 
10,624,055

Other agencies
99,650

 
689

 
(48
)
 
100,291

Total U.S. Treasury, Federal agency securities
10,874,796

 
9,344

 
(149,150
)
 
10,734,990

Municipal securities
3,282,938

 
47,711

 
(18,149
)
 
3,312,500

Asset-backed securities
614,141

 
2,256

 
(21,598
)
 
594,799

Corporate debt
138,539

 
5,500

 
(4
)
 
144,035

Other securities
601,562

 
439

 
(19
)
 
601,982

Total available-for-sale and other securities
$
15,511,976

 
$
65,250

 
$
(188,920
)
 
$
15,388,306

 
 
 
Unrealized
 
 
(dollar amounts in thousands)
Amortized
Cost
 
Gross
Gains
 
Gross
Losses
 
Fair Value
December 31, 2016
 
 
 
 
 
 
 
U.S. Treasury
$
5,480

 
$
17

 
$
—

 
$
5,497

Federal agencies:
 
 
 
 
 
 
 
Mortgage-backed securities
10,851,461

 
12,548

 
(190,667
)
 
10,673,342

Other agencies
73,012

 
536

 
(6
)
 
73,542

Total U.S. Treasury, Federal agency securities
10,929,953

 
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

 
441

 
(19
)
 
568,235

Total available-for-sale and other securities
$
15,776,855

 
$
47,626

 
$
(261,644
)
 
$
15,562,837

Available for sale securities in an unrealized loss position table text block
The following tables provide detail on investment securities with unrealized gross losses aggregated by investment category and the length of time the individual securities have been in a continuous loss position, at June 30, 2017 and December 31, 2016:
 
Less than 12 Months
 
Over 12 Months
 
Total
(dollar amounts in thousands)
Fair Value
 
Unrealized
Losses
 
Fair Value
 
Unrealized
Losses
 
Fair Value
 
Unrealized
Losses
June 30, 2017
 
 
 
 
 
 
 
 
 
 
 
Federal agencies:
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities
$
8,879,526

 
$
(147,900
)
 
$
42,504

 
$
(1,202
)
 
$
8,922,030

 
$
(149,102
)
Other agencies
12,793

 
(48
)
 
—

 
—

 
12,793

 
(48
)
Total Federal agency securities
8,892,319

 
(147,948
)
 
42,504

 
(1,202
)
 
8,934,823

 
(149,150
)
Municipal securities
702,379

 
(11,895
)
 
241,487

 
(6,254
)
 
943,866

 
(18,149
)
Asset-backed securities
177,834

 
(1,348
)
 
173,808

 
(20,250
)
 
351,642

 
(21,598
)
Corporate debt
595

 
(4
)
 
200

 
—

 
795

 
(4
)
Other securities
790

 
(10
)
 
1,491

 
(9
)
 
2,281

 
(19
)
Total temporarily impaired securities
$
9,773,917

 
$
(161,205
)
 
$
459,490

 
$
(27,715
)
 
$
10,233,407

 
$
(188,920
)
 
Less than 12 Months
 
Over 12 Months
 
Total
(dollar amounts in thousands)
Fair Value
 
Unrealized
Losses
 
Fair Value
 
Unrealized
Losses
 
Fair Value
 
Unrealized
Losses
December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
Federal agencies:
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities
$
8,908,470

 
$
(189,318
)
 
$
41,706

 
$
(1,349
)
 
$
8,950,176

 
$
(190,667
)
Other agencies
924

 
(6
)
 
—

 
—

 
924

 
(6
)
Total Federal agency securities
8,909,394

 
(189,324
)
 
41,706

 
(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

 
(29,092
)
 
540,109

 
(32,135
)
Corporate debt
3,567

 
(15
)
 
200

 
—

 
3,767

 
(15
)
Other securities
790

 
(11
)
 
1,492

 
(8
)
 
2,282

 
(19
)
Total temporarily impaired securities
$
10,687,088

 
$
(221,568
)
 
$
494,614

 
$
(40,076
)
 
$
11,181,702

 
$
(261,644
)
Realized securities gains and losses
The following table is a summary of realized securities gains and losses for the three-month and six-month periods ended June 30, 2017 and 2016:
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
(dollar amounts in thousands)
2017
 
2016
 
2017
 
2016
Gross gains on sales of securities
$
3,814

 
$
3,391

 
$
4,359

 
$
3,391

Gross (losses) on sales of securities
(120
)
 
(2,659
)
 
(649
)
 
(2,659
)
Net gain on sales of securities
$
3,694

 
$
732

 
$
3,710

 
$
732

OTTI recognized in earnings
(3,559
)
 
(76
)
 
(3,583
)
 
(76
)
Net security gains (losses)
$
135

 
$
656

 
$
127

 
$
656

Trust Preferred Securities Data
The following table summarizes the relevant characteristics of the Company's CDO securities portfolio, which are included in asset-backed securities, at June 30, 2017. 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)
Deal Name
Par Value
 
Amortized
Cost
 
Fair
Value
 
Unrealized
Loss (2)
 
Lowest
Credit
Rating
(3)
 
# of Issuers
Currently
Performing/
Remaining (4)
 
Actual
Deferrals
and
Defaults
as a % of
Original
Collateral
 
Expected
Defaults
as a % of
Remaining
Performing
Collateral
 
Excess
Subordination
(5)
MM Comm III
4,509

 
4,308

 
3,581

 
(727
)
 
BB+
 
5/8
 
5
 
5
 
39
Pre TSL IX (1)
5,000

 
3,955

 
3,275

 
(680
)
 
C
 
27/37
 
16
 
8
 
11
Pre TSL XI (1)
25,000

 
19,239

 
15,867

 
(3,372
)
 
C
 
42/51
 
14
 
8
 
14
Reg Diversified
25,500

 
510

 
510

 
—

 
D
 
21/36
 
32
 
8
 
—
Tropic III
31,000

 
31,000

 
19,342

 
(11,658
)
 
BB
 
27/36
 
16
 
7
 
41
Total at June 30, 2017
$
91,009

 
$
59,012

 
$
42,575

 
$
(16,437
)
 
 
 
 
 
 
 
 
 
 
Total at December 31, 2016
$
137,197

 
$
101,210

 
$
76,003

 
$
(25,207
)
 
 
 
 
 
 
 
 
 
 
(1)
Security was determined to have OTTI. As such, the amortized cost 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.
Schedule of other than temporary impairment
For the three-month and six-month periods ended June 30, 2017 and 2016, the following table summarizes by security type the total OTTI losses recognized in the Unaudited Condensed Consolidated Statements of Income for securities evaluated for impairment as described above.
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
(dollar amounts in thousands)
2017
 
2016
 
2017
 
2016
Available-for-sale and other securities:
 
 
 
 
 
 
 
Collateralized Debt Obligations
$
3,559

 
$
—

 
$
3,559

 
$
—

Municipal Securities
—

 
76

 
24

 
76

Total available-for-sale and other securities
$
3,559

 
$
76

 
$
3,583

 
$
76


The following table presents the OTTI recognized in earnings on debt securities held by Huntington for the three-month and six-month periods ended June 30, 2017 and 2016 as follows:
 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
(dollar amounts in thousands)
 
2017
 
2016
 
2017
 
2016
Balance, beginning of period
 
$
7,262

 
$
18,368

 
$
11,796

 
$
18,368

Reductions from sales
 
—

 
(8,613
)
 
(4,558
)
 
(8,613
)
Additional credit losses
 
3,559

 
76

 
3,583

 
76

Balance, end of period
 
$
10,821

 
$
9,831

 
$
10,821

 
$
9,831