Quarterly report pursuant to Section 13 or 15(d)

AVAILABLE-FOR-SALE AND OTHER SECURITIES (Tables)

v3.8.0.1
AVAILABLE-FOR-SALE AND OTHER SECURITIES (Tables)
 9 Months Ended
Sep. 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 September 30, 2017 and December 31, 2016.
 
September 30, 2017
 
December 31, 2016
(dollar amounts in thousands)
Amortized
Cost
 
Fair Value
 
Amortized
Cost
 
Fair Value
U.S. Treasury and Federal agency securities:
 
 
 
 
 
 
 
U.S. Treasury:
 
 
 
 
 
 
 
1 year or less
$
11,256

 
$
11,260

 
$
4,978

 
$
4,988

After 1 year through 5 years
—

 
—

 
502

 
509

After 5 years through 10 years
—

 
—

 
—

 
—

After 10 years
—

 
—

 
—

 
—

Total U.S. Treasury
11,256

 
11,260

 
5,480

 
5,497

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

 
—

 
—

 
—

After 1 year through 5 years
32,749

 
32,515

 
46,591

 
46,762

After 5 years through 10 years
257,032

 
255,488

 
173,941

 
176,404

After 10 years
10,496,277

 
10,351,747

 
10,630,929

 
10,450,176

Total Federal agencies: mortgage-backed securities
10,786,058

 
10,639,750

 
10,851,461

 
10,673,342

Other agencies:
 
 
 
 
 
 
 
1 year or less
4,201

 
4,223

 
4,302

 
4,367

After 1 year through 5 years
8,892

 
9,034

 
5,092

 
5,247

After 5 years through 10 years
82,692

 
83,194

 
63,618

 
63,928

After 10 years
—

 
—

 
—

 
—

Total other agencies
95,785

 
96,451

 
73,012

 
73,542

Total U.S. Treasury and Federal agency securities
10,893,099

 
10,747,461

 
10,929,953

 
10,752,381

Municipal securities:
 
 
 
 
 
 
 
1 year or less
163,747

 
160,032

 
169,636

 
166,887

After 1 year through 5 years
905,872

 
905,075

 
933,893

 
933,903

After 5 years through 10 years
1,656,860

 
1,655,384

 
1,463,459

 
1,464,583

After 10 years
703,350

 
705,618

 
693,440

 
684,684

Total municipal securities
3,429,829

 
3,426,109

 
3,260,428

 
3,250,057

Asset-backed securities:
 
 
 
 
 
 
 
1 year or less
—

 
—

 
—

 
—

After 1 year through 5 years
80,003

 
80,330

 
80,700

 
80,560

After 5 years through 10 years
162,079

 
163,439

 
223,352

 
224,565

After 10 years
326,724

 
311,422

 
520,072

 
488,356

Total asset-backed securities
568,806

 
555,191

 
824,124

 
793,481

Corporate debt:
 
 
 
 
 
 
 
1 year or less
3,143

 
3,157

 
43,223

 
43,603

After 1 year through 5 years
66,878

 
68,450

 
78,430

 
80,196

After 5 years through 10 years
38,471

 
39,902

 
32,523

 
32,865

After 10 years
13,211

 
14,120

 
40,361

 
42,019

Total corporate debt
121,703

 
125,629

 
194,537

 
198,683

Other:
 
 
 
 
 
 
 
1 year or less
3,150

 
3,144

 
1,650

 
1,650

After 1 year through 5 years
800

 
791

 
2,302

 
2,283

After 5 years through 10 years
—

 
—

 
—

 
—

After 10 years
—

 
—

 
10

 
10

Nonmarketable equity securities
583,019

 
583,019

 
547,704

 
547,704

Mutual funds
10,416

 
10,416

 
15,286

 
15,286

Marketable equity securities
861

 
1,301

 
861

 
1,302

Total other
598,246

 
598,671

 
567,813

 
568,235

Total available-for-sale and other securities
$
15,611,683

 
$
15,453,061

 
$
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 September 30, 2017 and December 31, 2016:
 
 
 
Unrealized
 
 
(dollar amounts in thousands)
Amortized
Cost
 
Gross
Gains
 
Gross
Losses
 
Fair Value
September 30, 2017
 
 
 
 
 
 
 
U.S. Treasury
$
11,256

 
$
4

 
$
—

 
$
11,260

Federal agencies:
 
 
 
 
 
 
 
Mortgage-backed securities
10,786,058

 
5,851

 
(152,159
)
 
10,639,750

Other agencies
95,785

 
722

 
(56
)
 
96,451

Total U.S. Treasury, Federal agency securities
10,893,099

 
6,577

 
(152,215
)
 
10,747,461

Municipal securities
3,429,829

 
31,043

 
(34,763
)
 
3,426,109

Asset-backed securities
568,806

 
2,409

 
(16,024
)
 
555,191

Corporate debt
121,703

 
3,927

 
(1
)
 
125,629

Other securities
598,246

 
439

 
(14
)
 
598,671

Total available-for-sale and other securities
$
15,611,683

 
$
44,395

 
$
(203,017
)
 
$
15,453,061

 
 
 
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 as of September 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
September 30, 2017
 
 
 
 
 
 
 
 
 
 
 
Federal agencies:
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities
$
8,283,266

 
$
(125,950
)
 
$
1,003,097

 
$
(26,209
)
 
$
9,286,363

 
$
(152,159
)
Other agencies
11,607

 
(56
)
 
—

 
—

 
11,607

 
(56
)
Total Federal agency securities
8,294,873

 
(126,006
)
 
1,003,097

 
(26,209
)
 
9,297,970

 
(152,215
)
Municipal securities
1,293,344

 
(23,995
)
 
277,157

 
(10,768
)
 
1,570,501

 
(34,763
)
Asset-backed securities
199,109

 
(1,471
)
 
122,568

 
(14,553
)
 
321,677

 
(16,024
)
Corporate debt
200

 
(1
)
 
—

 
—

 
200

 
(1
)
Other securities
791

 
(8
)
 
1,494

 
(6
)
 
2,285

 
(14
)
Total temporarily impaired securities
$
9,788,317

 
$
(151,481
)
 
$
1,404,316

 
$
(51,536
)
 
$
11,192,633

 
$
(203,017
)
 
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 nine-month periods ended September 30, 2017 and 2016, respectively.
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
(dollar amounts in thousands)
2017
 
2016
 
2017
 
2016
Gross gains on sales of securities
$
4,201

 
$
3,770

 
$
8,311

 
$
7,161

Gross (losses) on sales of securities
(4,130
)
 
(2,739
)
 
(4,530
)
 
(5,398
)
Net gain on sales of securities
$
71

 
$
1,031

 
$
3,781

 
$
1,763

OTTI recognized in earnings
(104
)
 
—

 
(3,687
)
 
(76
)
Net securities gains (losses)
$
(33
)
 
$
1,031

 
$
94

 
$
1,687

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 September 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)
 
 
 
 
 
 
 
Lowest
Credit
Rating
(2)
 
# of Issuers
Currently
Performing/
Remaining (3)
 
Actual
Deferrals
and
Defaults
as a % of
Original
Collateral
 
Expected
Defaults
as a % of
Remaining
Performing
Collateral
 
Excess
Subordination
(4)
Deal Name
Par Value
 
Amortized
Cost
 
Fair
Value
 
Unrealized
Loss (1)
 
 
 
 
 
MM Comm III
4,509

 
4,308

 
3,641

 
(667
)
 
BB+
 
5/8
 
5
 
7
 
34
Reg Diversified
25,500

 
100

 
510

 
410

 
D
 

 
—
 
—
 
—
Tropic III
31,000

 
30,989

 
19,976

 
(11,013
)
 
BB
 
27/36
 
16
 
6
 
41
Total at September 30, 2017
$
61,009

 
$
35,397

 
$
24,127

 
$
(11,270
)
 
 
 
 
 
 
 
 
 
 
Total at December 31, 2016
$
137,197

 
$
101,210

 
$
76,003

 
$
(25,207
)
 
 
 
 
 
 
 
 
 
 

(1)
The majority of securities have been in a continuous loss position for 12 months or longer.
(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.
Schedule of other than temporary impairment
For the three-month and nine-month periods ended September 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
September 30,
 
Nine Months Ended
September 30,
(dollar amounts in thousands)
2017
 
2016
 
2017
 
2016
Available-for-sale and other securities:
 
 
 
 
 
 
 
Collateralized Debt Obligations
$
—

 
$
—

 
$
3,559

 
$
—

Municipal Securities
104

 
—

 
128

 
76

Total available-for-sale and other securities
$
104

 
$
—

 
$
3,687

 
$
76


The following table presents the OTTI recognized in earnings on debt securities held by Huntington for the three-month and nine-month periods ended September 30, 2017 and 2016, respectively.
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
(dollar amounts in thousands)
 
2017
 
2016
 
2017
 
2016
Balance, beginning of period
 
$
10,821

 
$
9,831

 
$
11,796

 
$
18,368

Reductions from sales
 
(5,373
)
 
(76
)
 
(9,931
)
 
(8,689
)
Additional credit losses
 
104

 
—

 
3,687

 
76

Balance, end of period
 
$
5,552

 
$
9,755

 
$
5,552

 
$
9,755