Annual report pursuant to Section 13 and 15(d)

AVAILABLE-FOR-SALE AND OTHER SECURITIES (Tables)

v3.3.1.900
AVAILABLE-FOR-SALE AND OTHER SECURITIES (Tables)
12 Months Ended
Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]  
Contractual maturities of investment securities
Contractual maturities of available-for-sale and other securities as of December 31, 2015 and 2014 were:
 
 
2015
 
2014
(dollar amounts in thousands)
Amortized
Cost
 
Fair
Value
 
Amortized
Cost
 
Fair
Value
Under 1 year
$
333,891

 
$
332,980

 
$
355,486

 
$
355,465

After 1 year through 5 years
1,184,454

 
1,189,455

 
1,047,492

 
1,066,041

After 5 years through 10 years
1,648,808

 
1,645,759

 
1,517,974

 
1,527,195

After 10 years
5,259,855

 
5,263,063

 
6,090,688

 
6,086,980

Other securities:
 
 
 
 
 
 
 
Nonmarketable equity securities
332,786

 
332,786

 
331,559

 
331,559

Mutual funds
10,604

 
10,604

 
16,151

 
16,161

Marketable equity securities
525

 
794

 
536

 
1,269

Total available-for-sale and other securities
$
8,770,923

 
$
8,775,441

 
$
9,359,886

 
$
9,384,670

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, 2015 and 2014:
 
 
 
 
Unrealized
 
 
(dollar amounts in thousands)
Amortized
Cost
 
Gross
Gains
 
Gross
Losses
 
Fair Value
December 31, 2015
 
 
 
 
 
 
 
U.S. Treasury
$
5,457

 
$
15

 
$

 
$
5,472

Federal agencies:
 
 
 
 
 
 
 
Mortgage-backed securities
4,505,318

 
30,078

 
(13,708
)
 
4,521,688

Other agencies
115,076

 
888

 
(51
)
 
115,913

Total U.S. Treasury, Federal agency securities
4,625,851

 
30,981

 
(13,759
)
 
4,643,073

Municipal securities
2,431,943

 
51,558

 
(27,105
)
 
2,456,396

Asset-backed securities
901,059

 
535

 
(40,181
)
 
861,413

Corporate debt
464,207

 
4,824

 
(2,554
)
 
466,477

Other securities
347,863

 
271

 
(52
)
 
348,082

Total available-for-sale and other securities
$
8,770,923

 
$
88,169

 
$
(83,651
)
 
$
8,775,441

 
 
 
 
Unrealized
 
 
(dollar amounts in thousands)
Amortized
Cost
 
Gross
Gains
 
Gross
Losses
 
Fair 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
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, 2015 and 2014:
 
 
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, 2015
 
 
 
 
 
 
 
 
 
 
 
Federal agencies:
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities
$
1,658,516

 
$
(11,341
)
 
$
84,147

 
$
(2,367
)
 
$
1,742,663

 
$
(13,708
)
Other agencies
37,982

 
(51
)
 

 

 
37,982

 
(51
)
Total Federal agency securities
1,696,498

 
(11,392
)
 
84,147

 
(2,367
)
 
1,780,645

 
(13,759
)
Municipal securities
570,916

 
(15,992
)
 
248,204

 
(11,113
)
 
819,120

 
(27,105
)
Asset-backed securities
552,275

 
(5,791
)
 
207,639

 
(34,390
)
 
759,914

 
(40,181
)
Corporate debt
167,144

 
(1,673
)
 
21,965

 
(881
)
 
189,109

 
(2,554
)
Other securities
772

 
(28
)
 
1,476

 
(24
)
 
2,248

 
(52
)
Total temporarily impaired securities
$
2,987,605

 
$
(34,876
)
 
$
563,431

 
$
(48,775
)
 
$
3,551,036

 
$
(83,651
)
 
 
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, 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 years ended December 31, 2015, 2014, and 2013:
 
 
Year ended December 31,
(dollar amounts in thousands)
2015
 
2014
 
2013
Gross gains on sales of securities
$
6,730

 
$
17,729

 
$
2,932

Gross (losses) on sales of securities
(3,546
)
 
(175
)
 
(712
)
Net gain (loss) on sales of securities
$
3,184

 
$
17,554

 
$
2,220

Credit ratings on selected investment securities
The following table summarizes the relevant characteristics of our CDO securities portfolio, which are included in asset-backed securities, at December 31, 2015 and 2014. 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)
Alesco II (1)
$
41,646

 
$
28,022

 
$
25,296

 
$
(2,727
)
 
C
 
30/32
 
5
%
 
7
%
 
4
%
ICONS
19,214

 
19,214

 
15,567

 
(3,647
)
 
BB
 
19/21
 
7

 
14

 
52

MM Comm III
4,684

 
4,475

 
3,682

 
(793
)
 
BB
 
5/8
 
5

 
6

 
36

Pre TSL IX (1)
5,000

 
3,955

 
3,009

 
(946
)
 
C
 
27/38
 
18

 
10

 
7

Pre TSL XI (1)
25,000

 
20,155

 
15,418

 
(4,737
)
 
C
 
42/55
 
16

 
9

 
10

Pre TSL XIII (1)
27,530

 
19,735

 
16,769

 
(2,966
)
 
C
 
47/56
 
9

 
10

 
24

Reg Diversified (1)
25,500

 
5,435

 
1,994

 
(3,441
)
 
D
 
23/39
 
33

 
7

 

Tropic III
31,000

 
31,000

 
18,603

 
(12,397
)
 
CCC+
 
30/40
 
19

 
9

 
40

Total at December 31, 2015
$
179,574

 
$
131,991

 
$
100,338

 
$
(31,654
)
 
 
 
 
 
 
 
 
 
 
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)
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.
OTTI recognized in earnings
For the periods ended December 31, 2015, 2014, and 2013, 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 thousands)
2015
 
2014
 
2013
Available-for-sale and other securities:
 
 
 
 
 
Collateralized Debt Obligations
$
(2,440
)
 
$

 
$
(1,466
)
Private label CMO

 

 
(336
)
Total debt securities
(2,440
)
 

 
(1,802
)
Equity securities

 

 

Total available-for-sale and other securities
$
(2,440
)
 
$

 
$
(1,802
)
The following table rolls forward the OTTI recognized in earnings on debt securities held by Huntington for the years ended December 31, 2015, and 2014 as follows:
 
 
Year Ended December 31,
(dollar amounts in thousands)
2015
 
2014
Balance, beginning of year
$
30,869

 
$
30,869

Reductions from sales
(14,941
)
 

Credit losses not previously recognized

 

Additional credit losses
2,440

 

Balance, end of year
$
18,368

 
$
30,869