Quarterly report pursuant to Section 13 or 15(d)

Available-for-Sale and Other Securities (Tables)

v2.4.0.6
Available-for-Sale and Other Securities (Tables)
 3 Months Ended
Jun. 30, 2012
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 June 30, 2012 and December 31, 2011:

        June 30, 2012   December 31, 2011
        Amortized           Amortized      
(dollar amounts in thousands)   Cost     Fair Value     Cost     Fair Value
  U.S. Treasury:                      
    Under 1 year $ ---   $ ---   $ ---   $ ---
    1-5 years   51,446     52,180     51,773     52,672
    6-10 years   509     538     509     532
    Over 10 years   ---     ---     ---     ---
  Total U.S. Treasury   51,955     52,718     52,282     53,204
  Federal agencies: mortgage-backed securities:                      
    Under 1 year   3     3     ---     ---
    1-5 years   201,011     202,701     218,410     219,055
    6-10 years   439,964     451,257     400,105     409,521
    Over 10 years   4,467,222     4,540,056     3,760,108     3,836,316
  Total Federal agencies: mortgage-backed securities   5,108,200     5,194,017     4,378,623     4,464,892
  Other agencies:                      
    Under 1 year   1,247     1,284     101,346     101,656
    1-5 years   610,968     624,625     611,047     620,639
    6-10 years   53,349     54,836     12,333     13,249
    Over 10 years   15,000     15,000     ---     ---
  Total other agencies   680,564     695,745     724,726     735,544
Total U.S. Government backed agencies   5,840,719     5,942,480     5,155,631     5,253,640
Municipal securities:                      
  Under 1 year   ---     ---     ---     ---
  1-5 years   182,086     186,353     186,250     190,228
  6-10 years   114,392     121,314     98,801     104,857
  Over 10 years   70,894     71,994     109,811     112,641
Total municipal securities   367,372     379,661     394,862     407,726
Private-label CMO:                      
  Under 1 year   ---     ---     ---     ---
  1-5 years   ---     ---     ---     ---
  6-10 years   9,254     9,325     11,740     11,783
  Over 10 years   65,246     57,820     72,858     60,581
Total private-label CMO   74,500     67,145     84,598     72,364
Asset-backed securities:                      
  Under 1 year   3,253     3,249     ---     ---
  1-5 years   619,571     625,053     644,080     646,315
  6-10 years   250,635     254,465     197,940     199,075
  Over 10 years   309,067     177,693     258,270     121,698
Total asset-backed securities (1)   1,182,526     1,060,460     1,100,290     967,088
Covered bonds:                      
  Under 1 year   ---     ---     ---     ---
  1-5 years   282,814     287,649     510,937     504,045
  6-10 years   ---     ---     ---     ---
  Over 10 years   ---     ---     ---     ---
Total covered bonds   282,814     287,649     510,937     504,045
Corporate debt:                      
  Under 1 year   1,501     1,528     501     518
  1-5 years   463,162     464,069     383,909     379,657
  6-10 years   97,293     99,095     148,896     148,708
  Over 10 years   10,162     9,953     ---     ---
Total corporate debt   572,118     574,645     533,306     528,883
Other:                      
  Under 1 year   3,150     3,143     1,900     1,900
  1-5 years   750     750     2,250     2,234
  6-10 years   ---     ---     ---     ---
  Over 10 years   ---     ---     ---     ---
  Non-marketable equity securities   296,034     296,034     286,515     286,515
  Marketable equity securities   54,471     54,811     53,665     53,619
Total other   354,405     354,738     344,330     344,268
Total available-for-sale and other securities $ 8,674,454   $ 8,666,778   $ 8,123,954   $ 8,078,014
                           
(1) Amounts at June 30, 2012 and December 31, 2011 include automobile asset backed securities with a fair value of $67 million and $145 million, respectively, which meet the eligibility requirements for the Term Asset-Backed Securities Loan Facility, or "TALF," administered by the Federal Reserve Bank of New York.
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
June 30, 2012                      
U.S. Treasury $ 51,955   $ 763   $ ---   $ 52,718
Federal agencies:                      
  Mortgage-backed securities   5,108,200     88,436     (2,619)     5,194,017
  Other agencies   680,564     15,200     (19)     695,745
Total U.S. Government                      
  backed securities   5,840,719     104,399     (2,638)     5,942,480
Municipal securities   367,372     12,289     ---     379,661
Private-label CMO   74,500     955     (8,310)     67,145
Asset-backed securities   1,182,526     9,413     (131,479)     1,060,460
Covered bonds   282,814     4,835     ---     287,649
Corporate debt   572,118     6,303     (3,776)     574,645
Other securities   354,405     468     (135)     354,738
Total available-for-sale and other securities $ 8,674,454   $ 138,662   $ (146,338)   $ 8,666,778
                         
            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
  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   1,100,290     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
                         
Investment securities in an unrealized loss position
      Less than 12 Months     Over 12 Months     Total
      Fair     Unrealized     Fair     Unrealized     Fair     Unrealized
(dollar amounts in thousands )   Value     Losses     Value     Losses     Value     Losses
June 30, 2012                                  
U.S. Treasury $ ---   $ ---   $ ---   $ ---   $ ---   $ ---
Federal agencies:                                  
  Mortgage-backed securities   441,849     (2,619)     ---     ---     441,849     (2,619)
  Other agencies   1,509     (19)     ---     ---     1,509     (19)
Total U.S. Government                                  
  backed securities   443,358     (2,638)     ---     ---     443,358     (2,638)
Municipal securities   229     ---     ---     ---     229     ---
Private-label CMO   ---     ---     50,081     (8,310)     50,081     (8,310)
Asset-backed securities   55,203     (48)     115,260     (131,431)     170,463     (131,479)
Covered bonds   ---     ---     ---     ---     ---     ---
Corporate debt   89,663     (1,542)     242,766     (2,234)     332,429     (3,776)
Other securities   ---     ---     1,947     (135)     1,947     (135)
                                     
Total temporarily impaired securities $ 588,453   $ (4,228)   $ 410,054   $ (142,110)   $ 998,507   $ (146,338)
                                     
      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)
  Other agencies   3,070     (3)     ---     ---     3,070     (3)
Total U.S. Government                                  
  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)
Realized securities gains and losses

The following table is a summary of realized securities gains and losses for the three-month and six-month periods ended June 30, 2012 and 2011:

      Three Months Ended     Six Months Ended
      June 30,     June 30,
(dollar amounts in thousands)   2012     2011     2012     2011
  Gross gains on sales of securities $ 704   $ 9,623   $ 1,483   $ 16,358
  Gross (losses) on sales of securities   (101)     (7,934)     (256)     (10,464)
Net gain on sales of securities $ 603   $ 1,689   $ 1,227   $ 5,894
                         
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 June 30, 2012:

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 $ 74,500 $ 67,145   $ --- $ --- $ 20,575 $ 5,104 $ 41,466
  Alt-A mortgage-backed securities   52,711   46,442     ---   28,460   ---   ---   17,982
  Pooled-trust-preferred securities   198,357   73,233     ---   ---   20,819   ---   52,414
Total at June 30, 2012 $ 325,568 $ 186,820   $ --- $ 28,460 $ 41,394 $ 5,104 $ 111,862
Total at December 31, 2011 $ 342,867 $ 194,062   $ 1,045 $ 23,353 $ 52,935 $ 6,858 $ 109,871
                                 
(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, which are included in asset-backed securities, at June 30, 2012. 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                    
June 30, 2012                          
(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 (2) Rating (3) Remaining (4) Collateral   Collateral   Subordination (5)  
Alesco II (1) $ 41,646 $ 30,876 $ 9,291 $ (21,585) C 31/36 11 % 16 % --- %
Alesco IV (1)   21,293   8,243   388   (7,855) C 30/42 19   25   ---  
ICONS   20,000   20,000   11,842   (8,158) BB 25/26 3   15   52  
I-Pre TSL II   31,262   31,179   20,818   (10,361) A 24/25 3   13   73  
MM Comm III   7,402   7,072   3,767   (3,305) CC 5/10 7   13   33  
Pre TSL IX (1)   5,000   3,955   1,278   (2,677) C 33/48 26   14   7  
Pre TSL X (1)   18,058   9,915   4,536   (5,379) C 34/53 39   20   ---  
Pre TSL XI (1)   25,758   22,600   6,107   (16,493) C 42/63 29   19   ---  
Pre TSL XIII (1)   28,642   22,703   6,135   (16,568) C 39/63 37   32   ---  
Reg Diversified (1)   25,500   6,908   301   (6,607) D 23/44 46   20   ---  
Soloso (1)   12,500   3,906   691   (3,215) C 41/65 29   18   ---  
Tropic III   31,000   31,000   8,079   (22,921) CC 23/43 39   27   32  
Total $ 268,061 $ 198,357 $ 73,233 $ (125,124)                
                                   
(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.
Total OTTI losses, OTTI losses included in OCI, and OTTI recognized in the income statement for securities evaluated for impairment by debt security debt
      Three Months Ended     Six Months Ended
      June 30,     June 30,
(dollar amounts in thousands)   2012     2011     2012     2011
Available-for-sale and other securities:                      
  Alt-A Mortgage-backed $ ---   $ (58)   $ ---   $ (230)
  Pooled-trust-preferred   ---     ---     ---     (3,207)
  Private label CMO   (248)     (124)     (1,485)     (910)
  Total debt securities   (248)     (182)     (1,485)     (4,347)
  Equity securities   (5)     ---     (5)     ---
Total available-for-sale and other securities $ (253)   $ (182)   $ (1,490)   $ (4,347)
OTTI recognized in earnings on debt securities held by Huntington

The following table rolls forward the OTTI amounts recognized in earnings on debt securities held by Huntington for the three-month and six-month periods ended June 30, 2012 and 2011 as follows:

    Three Months Ended   Six Months Ended
    June 30,   June 30,
(dollar amounts in thousands)   2012     2011     2012     2011
Balance, beginning of period $ 56,904   $ 58,701   $ 56,764   $ 54,536
  Reductions from sales/maturities   ---     (4,481)     (1,097)     (4,481)
  Credit losses not previously recognized   ---     ---     ---     ---
  Additional credit losses   248     182     1,485     4,347
Balance, end of period $ 57,152   $ 54,402   $ 57,152   $ 54,402