Annual report pursuant to Section 13 and 15(d)

Available-for-Sale and Other Securities (Tables)

v2.4.0.6
Available-for-Sale and Other Securities (Tables)
 12 Months Ended
Dec. 31, 2011
Securities [Abstract]  
Contractual maturities of investment securities

Contractual maturities of available-for-sale and other securities as of December 31 were:

    2011     2010
    Amortized     Fair     Amortized     Fair
(dollar amounts in thousands)   Cost     Value     Cost     Value
Under 1 year $ 103,747   $ 104,074   $ 335,192   $ 337,715
1 - 5 years   2,608,656     2,614,845     3,540,183     3,510,490
6 - 10 years   870,324     887,725     1,128,657     1,139,727
Over 10 years   4,201,047     4,131,236     4,685,902     4,545,304
Nonmarketable equity securities   286,515     286,515     308,722     308,722
Marketable equity securities   53,665     53,619     53,944     53,286
Total available-for-sale and other securities $ 8,123,954   $ 8,078,014   $ 10,052,600   $ 9,895,244
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
December 31, 2011                      
U.S. Treasury $ 52,282   $ 922   $ ---   $ 53,204
Federal agencies:                      
  Mortgage-backed securities   4,378,623     88,266     (1,997)     4,464,892
  TLGP securities   ---     ---     ---     ---
  Other agencies   724,726     10,821     (3)     735,544
Total U.S. government backed securities   5,155,631     100,009     (2,000)     5,253,640
Municipal securities   394,862     12,889     (25)     407,726
Private-label CMO   84,598     347     (12,581)     72,364
Asset-backed securities (1)   1,100,290     3,925     (137,127)     967,088
Covered bonds   510,937     860     (7,752)     504,045
Corporate debt   533,306     891     (5,314)     528,883
Other securities   344,330     219     (281)     344,268
Total available-for-sale and other securities $ 8,123,954   $ 119,140   $ (165,080)   $ 8,078,014
                         
(1) Amounts at December 31, 2011 include securities backed by automobile loans with a fair value of $145 million which meet the eligibility requirements for the Term Asset-Backed Securities Loan Facility, administered by the Federal Reserve Bank.

                         
            Unrealized      
      Amortized     Gross     Gross     Fair
(dollar amounts in thousands)   Cost     Gains     Losses     Value
December 31, 2010                      
U.S. Treasury $ 52,425   $ ---   $ (644)   $ 51,781
Federal agencies:                      
  Mortgage-backed securities 4,733,831     71,901     (51,328)     4,754,404
  TLGP securities 181,680     1,787     ---     183,467
  Other agencies 2,070,722     4,874     (17,220)     2,058,376
Total U.S. government backed securities   7,038,658     78,562     (69,192)     7,048,028
Municipal securities   456,044     6,154     (6,483)     455,715
Private-label CMO   134,509     1,236     (13,820)     121,925
Asset-backed securities (2)   1,341,407     6,563     (140,848)     1,207,122
Covered bonds   379,711     ---     (12,502)     367,209
Corporate debt   329,988     24     (6,623)     323,389
Other securities   372,283     364     (791)     371,856
Total available-for-sale and other securities $ 10,052,600   $ 92,903   $ (250,259)   $ 9,895,244
                         
(2) Amounts at December 31, 2010 include securities backed by automobile loans with a fair value of $509 million which meet the eligibility requirements for the Term Asset-Backed Securities Loan Facility, administered by the Federal Reserve Bank.
Investment 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, 2011 and 2010.

      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, 2011                                  
U.S. Treasury $ ---   $ ---   $ ---   $ ---   $ ---   $ ---
Federal Agencies:                                  
  Mortgage-backed securities   417,614     (1,997)     ---     ---     417,614     (1,997)
  TLGP securities   ---     ---     ---     ---     ---     ---
  Other agencies   3,070     (3)     ---     ---     3,070     (3)
Total U.S. Government backed securities                                  
  backed securities   420,684     (2,000)     ---     ---     420,684     (2,000)
Municipal securities   6,667     (1)     7,311     (24)     13,978     (25)
Private label CMO   11,613     (48)     51,039     (12,533)     62,652     (12,581)
Asset-backed securities   252,671     (547)     113,663     (136,580)     366,334     (137,127)
Covered bonds   363,694     (7,214)     14,684     (538)     378,378     (7,752)
Corporate Debt   237,401     (3,652)     198,338     (1,662)     435,739     (5,314)
Other securities   1,984     (16)     ---     (265)     1,984     (281)
Total temporarily impaired securities $ 1,294,714   $ (13,478)   $ 385,035   $ (151,602)   $ 1,679,749   $ (165,080)
                                     

      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, 2010                                  
U.S. Treasury $ 51,781   $ (644)   $ ---   $ ---   $ 51,781   $ (644)
Federal Agencies                                  
  Mortgage-backed securities   1,424,431     (51,328)     ---     ---     1,424,431     (51,328)
  TLGP securities   ---     ---     ---     ---     ---     ---
  Other agencies   1,217,074     (17,134)     4,771     (86)     1,221,845     (17,220)
Total U.S. Government backed securities   2,693,286     (69,106)     4,771     (86)     2,698,057     (69,192)
Municipal securities   201,370     (6,363)     3,700     (120)     205,070     (6,483)
Private label CMO   ---     ---     85,617     (13,820)     85,617     (13,820)
Asset-backed securities   214,983     (2,129)     146,866     (138,719)     361,849     (140,848)
Covered bonds   367,209     (12,502)     ---     ---     367,209     (12,502)
Corporate Debt   288,660     (6,623)     ---     ---     288,660     (6,623)
Other securities   ---     ---     41,218     (791)     41,218     (791)
Total temporarily impaired securities $ 3,765,508   $ (96,723)   $ 282,172   $ (153,536)   $ 4,047,680   $ (250,259)
Realized securities gains and losses

The following table is a summary of securities gains and losses for the years ended December 31, 2011, 2010 and 2009:

(dollar amounts in thousands)   2011     2010     2009
  Gross gains on sales of securities $ 18,641   $ 28,992   $ 59,762
  Gross (losses) on sales of securities   (14,959)     (15,544)     (10,947)
Net gain (loss) on sales of securities   3,682     13,448     48,815
  OTTI recorded - pre adoption (1)   ---     ---     (3,937)
  OTTI recorded - post adoption (1)   (7,363)     (13,722)     (55,127)
Net OTTI recorded   (7,363)     (13,722)     (59,064)
Total securities gain (loss) $ (3,681)   $ (274)   $ (10,249)
(1) Huntington adopted the current OTTI provisions of ASC Topic 320 on April 1, 2009.
Credit Ratings on Selected Investment Securities

The following table presents the credit ratings for our Alt-A mortgage-backed, pooled-trust-preferred, and private label CMO securities as of December 31, 2011:

Credit Ratings of Selected Investment Securities (1)            
(dollar amounts in thousands)             Average Credit Rating of Fair Value Amount
      Amortized                          
      Cost   Fair Value     AAA   AA +/-   A +/-   BBB +/-   <BBB-
  Private-label CMO securities $ 84,598 $ 72,364   $ 1,045 $ - $ 22,250 $ 6,858 $ 42,211
  Alt-A mortgage-backed securities   57,684   47,889     -   23,353   8,035   -   16,501
  Pooled-trust-preferred securities   200,585   73,809     -   -   22,650   -   51,159
Total at December 31, 2011 $ 342,867 $ 194,062   $ 1,045 $ 23,353 $ 52,935 $ 6,858 $ 109,871
Total at December 31, 2010 $ 435,835 $ 284,608   $ 41,238 $ 33,880 $ 29,691 $ 15,145 $ 164,654
                                 
(1) Credit ratings reflect the lowest current rating assigned by a nationally recognized credit rating agency.
Trust Preferred Securities Data

The following table summarizes the relevant characteristics of our pooled-trust-preferred securities portfolio at December 31, 2011. Each security is part of a pool of issuers and supports a more senior tranche of securities except for the I-Pre TSL II, and MM Comm III securities which are the most senior class.

Trust Preferred Securities Data                    
December 31, 2011                          
(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 Rating (2) Remaining (3) Collateral   Collateral   Subordination (4)  
Alesco II (1) $ 41,646 $ 31,327 $ 9,300 $ (22,027) C 31/37 14 % 17 % --- %
Alesco IV (1)   21,065   8,243   362   (7,881) C 32/42 16   24   ---  
ICONS   20,000   20,000   12,210   (7,790) BB 25/26 3   13   55  
I-Pre TSL II   32,957   32,868   22,650   (10,218) A 25/26 3   11   75  
MM Comm III   7,425   7,094   4,013   (3,081) CC 5/10 7   14   33  
Pre TSL IX   5,000   3,955   1,315   (2,640) C 33/48 27   19   2  
Pre TSL X (1)   17,860   9,914   3,388   (6,526) C 33/53 42   35   ---  
Pre TSL XI (1)   25,554   22,667   6,169   (16,498) C 42/63 29   18   ---  
Pre TSL XIII (1)   28,346   22,703   6,287   (16,416) C 40/63 33   26   ---  
Reg Diversified (1)   25,500   6,908   265   (6,643) D 23/44 46   23   ---  
Soloso (1)   12,500   3,906   770   (3,136) C 44/66 23   17   ---  
Tropic III   31,000   31,000   7,080   (23,920) CC 23/44 42   36   20  
Total $ 268,853 $ 200,585 $ 73,809 $ (126,776)                
                                   
(1) Security was determined to have OTTI. As such, the book value is net of recorded credit impairment.
(2) 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.
(3) Includes both banks and/or insurance companies.
(4) 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.
Total OTTI losses, OTTI losses included in OCI, and OTTI recognized in the income statement for securities evaluated for impairment by debt security debt

For the periods ended December 31, 2011, 2010 and 2009, the following tables summarize by debt security type, total OTTI losses, OTTI losses included in OCI, and OTTI recognized in the Consolidated Statements of Income for securities evaluated for impairment as described above.

 

    Year Ended December 31, 2011
      Alt-A     Pooled-     Private      
(dollar amounts in thousands) Mortgage-backed trust-preferred Label CMO   Total
Total OTTI recoveries (losses) (unrealized and realized) $ (724)   $ 4,389   $ 1,163   $ 4,828
  Unrealized OTTI (recoveries) losses recognized in OCI   363     (8,187)     (3,713)     (11,537)
Net impairment losses recognized in earnings $ (361)   $ (3,798)   $ (2,550)   $ (6,709)
                         
    Year Ended December 31, 2010
      Alt-A     Pooled-     Private      
(dollar amounts in thousands) Mortgage-backed trust-preferred Label CMO   Total
Total OTTI recoveries (losses) (unrealized and realized) $ 566   $ 1,254   $ 8,046   $ 9,866
  Unrealized OTTI (recoveries) losses recognized in OCI   (2,198)     (6,176)     (15,195)     (23,569)
Net impairment losses recognized in earnings $ (1,632)   $ (4,922)   $ (7,149)   $ (13,703)
                         
    Year Ended December 31, 2009 (1)
      Alt-A     Pooled-     Private      
(dollar amounts in thousands) Mortgage-backed trust-preferred Label CMO   Total
Total OTTI (losses) recoveries (unrealized and realized) $ (16,906)   $ (131,902)   $ (30,727)   $ (179,535)
  Unrealized OTTI losses (recoveries) recognized in OCI   6,186     93,491     24,731     124,408
Net impairment losses recognized in earnings $ (10,720)   $ (38,411)   $ (5,996)   $ (55,127)
                         
(1) Huntington adopted the updated OTTI provisions on April 1, 2009. Amounts represent activity from adoption date through December 31, 2009.
                       
Unrealized OTTI recognized in OCI

The following table rolls forward the unrealized OTTI recognized in OCI on debt securities held by Huntington for the years ended December 31, 2011 and 2010 as follows:

      Year Ended December 31,  
(dollar amounts in thousands)   2011     2010  
Balance, beginning of year $ 100,838   $ 124,408  
  Reductions from sales of securities with credit impairment   (1,053)     (12,907)  
  Noncredit impairment on securities not previously considered credit impaired   ---     30,215  
  Change due to improvement in expected cash flows   (20,379)     (49,802)  
  Additional noncredit impairment on securities with previous credit impairment   9,895     8,924  
Balance, end of year $ 89,301   $ 100,838  
               
OTTI recognized in earnings on debt securities held by Huntington

The following table rolls forward the OTTI recognized in earnings on debt securities held by Huntington for the years ended December 31, 2011 and 2010 as follows.

    Year Ended December 31,
(dollar amounts in thousands)   2011     2010
Balance, beginning of year $ 54,536   $ 53,801
  Reductions from sales   (4,481)     (12,968)
  Credit losses not previously recognized   42     2,381
  Additional credit losses   6,667     11,322
Balance, end of year $ 56,764   $ 54,536