Quarterly report pursuant to Section 13 or 15(d)

AVAILABLE-FOR-SALE AND OTHER SECURITIES (Tables)

v3.3.1.900
AVAILABLE-FOR-SALE AND OTHER SECURITIES (Tables)
 9 Months Ended
Sep. 30, 2015
Investments, Debt and Equity Securities [Abstract]  
Contractual maturities of investment securities
Listed below are the contractual maturities (under 1 year, 1-5 years, 6-10 years, and over 10 years) of available-for-sale and other securities at September 30, 2015 and December 31, 2014:
 
September 30, 2015
 
December 31, 2014
(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
$
8,583

 
$
8,585

 
$
—

 
$
—

After 1 year through 5 years
5,451

 
5,510

 
5,435

 
5,452

After 5 years through 10 years
—

 
—

 
—

 
—

After 10 years
—

 
—

 
—

 
—

Total U.S. Treasury
14,034

 
14,095

 
5,435

 
5,452

Federal agencies: mortgage-backed securities:
 
 
 
 
 
 
 
1 year or less
52,951

 
53,052

 
47,023

 
47,190

After 1 year through 5 years
125,173

 
128,473

 
216,775

 
221,078

After 5 years through 10 years
227,466

 
231,846

 
184,576

 
186,938

After 10 years
6,261,562

 
6,350,842

 
4,825,525

 
4,867,495

Total Federal agencies: mortgage-backed securities
6,667,152

 
6,764,213

 
5,273,899

 
5,322,701

Other agencies:
 
 
 
 
 
 
 
1 year or less
1,702

 
1,712

 
33,047

 
33,237

After 1 year through 5 years
8,264

 
8,672

 
9,122

 
9,575

After 5 years through 10 years
214,184

 
219,193

 
103,530

 
105,019

After 10 years
144,292

 
146,961

 
204,016

 
203,712

Total other agencies
368,442

 
376,538

 
349,715

 
351,543

Total U.S. Treasury, Federal agency, and other agency securities
7,049,628

 
7,154,846

 
5,629,049

 
5,679,696

Municipal securities:
 
 
 
 
 
 
 
1 year or less
280,971

 
276,600

 
256,399

 
255,835

After 1 year through 5 years
499,125

 
501,559

 
269,385

 
274,003

After 5 years through 10 years
987,208

 
993,630

 
938,780

 
945,954

After 10 years
530,386

 
556,302

 
376,747

 
392,777

Total municipal securities
2,297,690

 
2,328,091

 
1,841,311

 
1,868,569

Private-label CMO:
 
 
 
 
 
 
 
1 year or less
—

 
—

 
—

 
—

After 1 year through 5 years
—

 
—

 
—

 
—

After 5 years through 10 years
—

 
—

 
1,314

 
1,371

After 10 years
—

 
—

 
42,416

 
40,555

Total private-label CMO
—

 
—

 
43,730

 
41,926

Asset-backed securities:
 
 
 
 
 
 
 
1 year or less
—

 
—

 
—

 
—

After 1 year through 5 years
90,168

 
90,580

 
228,852

 
229,364

After 5 years through 10 years
128,425

 
129,530

 
144,163

 
144,193

After 10 years
624,998

 
593,899

 
641,984

 
582,441

Total asset-backed securities
843,591

 
814,009

 
1,014,999

 
955,998

Corporate debt:
 
 
 
 
 
 
 
1 year or less
20,695

 
20,746

 
18,767

 
18,953

After 1 year through 5 years
325,773

 
333,460

 
314,773

 
323,503

After 5 years through 10 years
95,909

 
94,883

 
145,611

 
143,720

After 10 years
—

 
—

 
—

 
—

Total corporate debt
442,377

 
449,089

 
479,151

 
486,176

Other:
 
 
 
 
 
 
 
1 year or less
—

 
—

 
250

 
250

After 1 year through 5 years
3,950

 
3,914

 
3,150

 
3,066

After 5 years through 10 years
—

 
—

 
—

 
—

After 10 years
—

 
—

 
—

 
—

Non-marketable equity securities
332,418

 
332,418

 
331,559

 
331,559

Mutual funds
11,154

 
11,153

 
16,151

 
16,161

Marketable equity securities
755

 
1,348

 
536

 
1,269

Total other
348,277

 
348,833

 
351,646

 
352,305

Total available-for-sale and other securities
$
10,981,563

 
$
11,094,868

 
$
9,359,886

 
$
9,384,670

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, 2015 and December 31, 2014:
 
 
 
Unrealized
 
 
(dollar amounts in thousands)
Amortized
Cost
 
Gross
Gains
 
Gross
Losses
 
Fair Value
September 30, 2015
 
 
 
 
 
 
 
U.S. Treasury
$
14,034

 
$
61

 
$
—

 
$
14,095

Federal agencies:
 
 
 
 
 
 
 
Mortgage-backed securities
6,667,152

 
104,044

 
(6,983
)
 
6,764,213

Other agencies
368,442

 
8,096

 
—

 
376,538

Total U.S. Treasury, Federal agency securities
7,049,628

 
112,201

 
(6,983
)
 
7,154,846

Municipal securities
2,297,690

 
49,426

 
(19,025
)
 
2,328,091

Private-label CMO
—

 
—

 
—

 
—

Asset-backed securities
843,591

 
4,471

 
(34,053
)
 
814,009

Corporate debt
442,377

 
7,983

 
(1,271
)
 
449,089

Other securities
348,277

 
592

 
(36
)
 
348,833

Total available-for-sale and other securities
$
10,981,563

 
$
174,673

 
$
(61,368
)
 
$
11,094,868

 
 
 
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 table text block
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 September 30, 2015 and December 31, 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
September 30, 2015
 
 
 
 
 
 
 
 
 
 
 
Federal agencies:
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities
$
417,246

 
$
(1,087
)
 
$
262,384

 
$
(5,896
)
 
$
679,630

 
$
(6,983
)
Other agencies
—

 
—

 
—

 
—

 
—

 
—

Total Federal agency securities
417,246

 
(1,087
)
 
262,384

 
(5,896
)
 
679,630

 
(6,983
)
Municipal securities
282,128

 
(11,078
)
 
243,660

 
(7,947
)
 
525,788

 
(19,025
)
Private-label CMO
—

 
—

 
—

 
—

 
—

 
—

Asset-backed securities
102,467

 
(221
)
 
248,239

 
(33,832
)
 
350,706

 
(34,053
)
Corporate debt
45,450

 
(469
)
 
21,876

 
(802
)
 
67,326

 
(1,271
)
Other securities
788

 
(22
)
 
1,486

 
(14
)
 
2,274

 
(36
)
Total temporarily impaired securities
$
848,079

 
$
(12,877
)
 
$
777,645

 
$
(48,491
)
 
$
1,625,724

 
$
(61,368
)
 
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 rolls forward the OTTI recognized in earnings on debt securities held by Huntington for the three-month and nine-month periods ended September 30, 2015 and 2014 as follows:
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
(dollar amounts in thousands)
 
2015
 
2014
 
2015
 
2014
Balance, beginning of period
 
$
30,869

 
$
30,869

 
$
30,869

 
$
30,869

Reductions from sales/maturities
 
(14,941
)
 
—

 
(14,941
)
 
—

Additional credit losses
 
2,440

 
—

 
2,440

 
—

Balance, end of period
 
$
18,368

 
$
30,869

 
$
18,368

 
$
30,869

The following table is a summary of realized securities gains and losses for the three-month and nine-month periods ended September 30, 2015 and 2014:
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
(dollar amounts in thousands)
2015
 
2014
 
2015
 
2014
Gross gains on sales of securities
$
6,173

 
$
198

 
$
6,256

 
$
17,678

Gross (losses) on sales of securities
(5,985
)
 
—

 
(5,986
)
 
(20
)
Net gain on sales of securities
$
188

 
$
198

 
$
270

 
$
17,658

For the three-month and nine-month periods ended September 30, 2015 and 2014, 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)
 
2015
 
2014
 
2015
 
2014
Available-for-sale and other securities:
 
 
 
 
 
 
 
 
Pooled-trust-preferred
 
$
2,440

 
$
—

 
$
2,440

 
$
—

Total debt securities
 
2,440

 
—

 
2,440

 
—

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

 
$
—

 
$
2,440

 
$
—

Trust Preferred Securities Data
The following table summarizes the relevant characteristics of our CDO securities portfolio, which are included in asset-backed securities, at September 30, 2015. 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 Data
September 30, 2015
(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
$
41,646

 
$
28,229

 
$
25,392

 
$
(2,838
)
 
C
 
30/32
 
5
%
 
7
%
 
4
%
ICONS
19,515

 
19,515

 
15,670

 
(3,844
)
 
BB
 
19/21
 
7

 
16

 
57

MM Comm III
5,459

 
5,216

 
4,341

 
(875
)
 
BB
 
6/9
 
5

 
6

 
32

Pre TSL IX
5,000

 
3,955

 
3,019

 
(936
)
 
C
 
27/38
 
18

 
10

 
6

Pre TSL XI
25,000

 
20,278

 
15,475

 
(4,803
)
 
C
 
42/55
 
16

 
9

 
9

Pre TSL XIII
27,530

 
19,869

 
16,840

 
(3,028
)
 
C
 
46/56
 
10

 
11

 
23

Reg Diversified (1)
25,500

 
5,706

 
1,765

 
(3,942
)
 
D
 
24/40
 
33

 
7

 
—

Tropic III
31,000

 
31,000

 
18,671

 
(12,329
)
 
CCC+
 
29/40
 
20

 
8

 
39

Total at September 30, 2015
$
180,650

 
$
133,768

 
$
101,173

 
$
(32,595
)
 
 
 
 
 
 
 
 
 
 
Total at December 31, 2014
$
193,597

 
$
139,194

 
$
82,738

 
$
(56,456
)
 
 
 
 
 
 
 
 
 
 
(1)
Security was determined to have OTTI. As such, the carrying value is net of recorded credit impairment.
(2)
These securities have been in a continuous loss position for longer than 12 months.
(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.