Annual report pursuant to Section 13 and 15(d)

AVAILABLE-FOR-SALE AND OTHER SECURITIES (Tables)

v3.8.0.1
AVAILABLE-FOR-SALE AND OTHER SECURITIES (Tables)
12 Months Ended
Dec. 31, 2017
Investments, Debt and Equity Securities [Abstract]  
Contractual maturities of investment securities
Contractual maturities of available-for-sale and other securities as of December 31, 2017 and 2016 were:
 
2017
 
2016
(dollar amounts in millions)
Amortized
Cost
 
Fair
Value
 
Amortized
Cost
 
Fair
Value
Under 1 year
$
111

 
$
111

 
$
224

 
$
222

After 1 year through 5 years
1,333

 
1,327

 
1,147

 
1,150

After 5 years through 10 years
2,088

 
2,083

 
1,957

 
1,962

After 10 years
11,595

 
11,348

 
11,885

 
11,665

Other securities:
 
 
 
 
 
 
 
Nonmarketable equity securities
581

 
581

 
548

 
548

Mutual funds
18

 
18

 
15

 
15

Marketable equity securities
1

 
1

 
1

 
1

Total available-for-sale and other securities
$
15,727

 
$
15,469

 
$
15,777

 
$
15,563

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, 2017 and 2016: 
 
 
 
Unrealized
 
 
(dollar amounts in millions)
Amortized
Cost
 
Gross
Gains
 
Gross
Losses
 
Fair Value
December 31, 2017
 
 
 
 
 
 
 
U.S. Treasury
$
5

 
$

 
$

 
$
5

Federal agencies:
 
 
 
 
 
 
 
Residential CMO
6,661

 
1

 
(178
)
 
6,484

Residential MBS
1,371

 
1

 
(5
)
 
1,367

Commercial MBS
2,539

 

 
(52
)
 
2,487

Other agencies
69

 
1

 

 
70

Total U.S. Treasury, Federal agency, and other agency securities
10,645

 
3

 
(235
)
 
10,413

Municipal securities
3,892

 
21

 
(35
)
 
3,878

Asset-backed securities
482

 
1

 
(16
)
 
467

Corporate debt
106

 
3

 

 
109

Other securities
602

 

 

 
602

Total available-for-sale and other securities
$
15,727

 
$
28

 
$
(286
)
 
$
15,469

 
 
 
 
Unrealized
 
 
(dollar amounts in millions)
Amortized
Cost
 
Gross
Gains
 
Gross
Losses
 
Fair Value
December 31, 2016
 
 
 
 
 
 
 
U.S. Treasury
$
6

 
$

 
$

 
$
6

Federal agencies:
 
 
 
 
 
 
 
Residential CMO
6,955

 
6

 
(151
)
 
6,810

Residential MBS
196

 
5

 
(1
)
 
200

Commercial MBS
3,700

 
2

 
(39
)
 
3,663

Other agencies
73

 

 

 
73

Total U.S. Treasury, Federal agency, and other agency securities
10,930

 
13

 
(191
)
 
10,752

Municipal securities
3,260

 
29

 
(39
)
 
3,250

Asset-backed securities
824

 
2

 
(32
)
 
794

Corporate debt
195

 
4

 

 
199

Other securities
568

 

 

 
568

Total available-for-sale and other securities
$
15,777

 
$
48

 
$
(262
)
 
$
15,563

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, 2017 and 2016:
 
Less than 12 Months
 
Over 12 Months
 
Total
(dollar amounts in millions)
Fair Value
 
Unrealized
Losses
 
Fair Value
 
Unrealized
Losses
 
Fair Value
 
Unrealized
Losses
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
Federal agencies:
 
 
 
 
 
 
 
 
 
 
 
Residential CMO
$
1,660

 
$
(19
)
 
$
4,520

 
$
(159
)
 
$
6,180

 
$
(178
)
Residential MBS
1,078

 
(5
)
 
11

 

 
1,089

 
(5
)
Commercial MBS
960

 
(15
)
 
1,527

 
(37
)
 
2,487

 
(52
)
Other agencies
39

 

 

 

 
39

 

Total Federal agency, and other agency securities
3,737

 
(39
)
 
6,058

 
(196
)
 
9,795

 
(235
)
Municipal securities
1,681

 
(21
)
 
497

 
(14
)
 
2,178

 
(35
)
Asset-backed securities
127

 
(1
)
 
173

 
(15
)
 
300

 
(16
)
Corporate debt

 

 

 

 

 

Other securities

 

 

 

 

 

Total temporarily impaired securities
$
5,545

 
$
(61
)
 
$
6,728

 
$
(225
)
 
$
12,273

 
$
(286
)
 
Less than 12 Months
 
Over 12 Months
 
Total
(dollar amounts in millions)
Fair Value
 
Unrealized
Losses
 
Fair Value
 
Unrealized
Losses
 
Fair Value
 
Unrealized
Losses
December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
Federal agencies:
 
 
 
 
 
 
 
 
 
 
 
Residential CMO
$
5,858

 
$
(150
)
 
$
21

 
$
(1
)
 
$
5,879

 
$
(151
)
Residential MBS
31

 
(1
)
 

 

 
31

 
(1
)
Commercial MBS
3,019

 
(39
)
 
21

 

 
3,040

 
(39
)
Other agencies
1

 

 

 

 
1

 

Total Federal agency, and other agency securities
8,909

 
(190
)
 
42

 
(1
)
 
8,951

 
(191
)
Municipal securities
1,412

 
(29
)
 
272

 
(10
)
 
1,684

 
(39
)
Asset-backed securities
361

 
(3
)
 
179

 
(29
)
 
540

 
(32
)
Corporate debt
4

 

 

 

 
4

 

Other securities
1

 

 
2

 

 
3

 

Total temporarily impaired securities
$
10,687

 
$
(222
)
 
$
495

 
$
(40
)
 
$
11,182

 
$
(262
)

Realized securities gains and losses
The following table is a summary of realized securities gains and losses for the years ended December 31, 2017, 2016, and 2015:
 
Year Ended December 31,
(dollar amounts in millions)
2017
 
2016
 
2015
Gross gains on sales of securities
$
10

 
$
23

 
$
7

Gross (losses) on sales of securities
(10
)
 
(21
)
 
(4
)
Net gain (loss) on sales of securities
$

 
$
2

 
$
3

OTTI recognized in earnings
(4
)
 
(2
)
 
(2
)
Net securities gains (losses)
$
(4
)
 
$

 
$
1

Credit ratings on selected investment securities
The following table summarizes the Company's CDO securities portfolio, which are included in asset-backed securities, at December 31, 2017 and 2016.
Collateralized Debt Obligation Securities
(dollar amounts in millions)
Par Value
 
Amortized
Cost
 
Fair
Value
 
Unrealized
Loss (1)
MM Comm III
4

 
4

 
4

 

Tropic III
31

 
31

 
20

 
(11
)
Total at December 31, 2017
$
35

 
$
35

 
$
24

 
$
(11
)
Total at December 31, 2016
$
137

 
$
101

 
$
76

 
$
(25
)
(1)
One of the two remaining securities in the portfolio has been in a continuous loss position for 12 months or longer.
OTTI recognized in earnings
For the periods ended December 31, 2017, 2016, and 2015, 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 millions)
2017
 
2016
 
2015
Available-for-sale and other securities:
 
 
 
 
 
Collateralized Debt Obligations
$
(4
)
 
$

 
$
(2
)
Municipal Securities

 
(2
)
 

Total available-for-sale and other securities
$
(4
)
 
$
(2
)
 
$
(2
)
The following table rolls forward the OTTI recognized in earnings on debt securities held by Huntington for the years ended December 31, 2017, and 2016 as follows:
 
Year Ended December 31,
(dollar amounts in millions)
2017
 
2016
 
2015
Balance, beginning of year
$
12

 
$
18

 
$
31

Reductions from sales
(15
)
 
(8
)
 
(15
)
Credit losses not previously recognized
4

 
2

 

Additional credit losses

 

 
2

Balance, end of year
$
1

 
$
12

 
$
18