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
Sep. 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 September 30, 2012 and December 31, 2011:

        September 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   51,280     52,030     51,773     52,672
    6-10 years   508     541     509     532
    Over 10 years   ---     ---     ---     ---
  Total U.S. Treasury   51,788     52,571     52,282     53,204
  Federal agencies: mortgage-backed securities:                      
    Under 1 year   2     2     ---     ---
    1-5 years   193,873     197,245     218,410     219,055
    6-10 years   453,302     471,319     400,105     409,521
    Over 10 years   3,802,732     3,900,036     3,760,108     3,836,316
  Total Federal agencies: mortgage-backed securities   4,449,909     4,568,602     4,378,623     4,464,892
  Other agencies:                      
    Under 1 year   2,499     2,558     101,346     101,656
    1-5 years   303,776     313,516     611,047     620,639
    6-10 years   46,524     48,073     12,333     13,249
    Over 10 years   ---     ---     ---     ---
  Total other agencies   352,799     364,147     724,726     735,544
Total U.S. Government backed agencies   4,854,496     4,985,320     5,155,631     5,253,640
Municipal securities:                      
  Under 1 year   276     277     ---     ---
  1-5 years   175,839     181,037     186,250     190,228
  6-10 years   195,193     203,733     98,801     104,857
  Over 10 years   89,385     90,578     109,811     112,641
Total municipal securities   460,693     475,625     394,862     407,726
Private-label CMO:                      
  Under 1 year   ---     ---     ---     ---
  1-5 years   ---     ---     ---     ---
  6-10 years   8,560     8,702     11,740     11,783
  Over 10 years   71,945     67,080     72,858     60,581
Total private-label CMO   80,505     75,782     84,598     72,364
Asset-backed securities:                      
  Under 1 year   ---     ---     ---     ---
  1-5 years   567,975     576,772     644,080     646,315
  6-10 years   204,519     210,504     197,940     199,075
  Over 10 years   306,293     186,343     258,270     121,698
Total asset-backed securities (1)   1,078,787     973,619     1,100,290     967,088
Covered bonds:                      
  Under 1 year   ---     ---     ---     ---
  1-5 years   282,448     291,965     510,937     504,045
  6-10 years   ---     ---     ---     ---
  Over 10 years   ---     ---     ---     ---
Total covered bonds   282,448     291,965     510,937     504,045
Corporate debt:                      
  Under 1 year   27,439     27,808     501     518
  1-5 years   480,902     488,622     383,909     379,657
  6-10 years   121,962     126,535     148,896     148,708
  Over 10 years   10,154     10,324     ---     ---
Total corporate debt   640,457     653,289     533,306     528,883
Other:                      
  Under 1 year   3,150     3,146     1,900     1,900
  1-5 years   750     750     2,250     2,234
  6-10 years   ---     ---     ---     ---
  Over 10 years   ---     ---     ---     ---
  Non-marketable equity securities   301,464     301,464     286,515     286,515
  Marketable equity securities   17,293     17,608     53,665     53,619
Total other   322,657     322,968     344,330     344,268
Total available-for-sale and other securities $ 7,720,043   $ 7,778,568   $ 8,123,954   $ 8,078,014
                           
(1) Amounts at September 30, 2012 and December 31, 2011 include automobile asset backed securities with a fair value of $33 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
September 30, 2012                      
U.S. Treasury $ 51,788   $ 783   $ ---   $ 52,571
Federal agencies:                      
  Mortgage-backed securities   4,449,909     118,918     (225)     4,568,602
  Other agencies   352,799     11,350     (2)     364,147
Total U.S. Government                      
  backed securities   4,854,496     131,051     (227)     4,985,320
Municipal securities   460,693     14,960     (28)     475,625
Private-label CMO   80,505     1,091     (5,814)     75,782
Asset-backed securities   1,078,787     15,768     (120,936)     973,619
Covered bonds   282,448     9,517     ---     291,965
Corporate debt   640,457     13,509     (677)     653,289
Other securities   322,657     360     (49)     322,968
Total available-for-sale and other securities $ 7,720,043   $ 186,256   $ (127,731)   $ 7,778,568
                         
            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
September 30, 2012                                  
U.S. Treasury $ ---   $ ---   $ ---   $ ---   $ ---   $ ---
Federal agencies:                                  
  Mortgage-backed securities   11,543     (110)     38,500     (115)     50,043     (225)
  Other agencies   1,416     (2)     ---     ---     1,416     (2)
Total U.S. Government                                  
  backed securities   12,959     (112)     38,500     (115)     51,459     (227)
Municipal securities   27,851     (28)     ---     ---     27,851     (28)
Private-label CMO   24,092     ---     36,014     (5,814)     60,106     (5,814)
Asset-backed securities   ---     ---     103,406     (120,936)     103,406     (120,936)
Covered bonds   ---     ---     ---     ---     ---     ---
Corporate debt   31,108     (64)     274,387     (613)     305,495     (677)
Other securities   ---     ---     1,409     (49)     1,409     (49)
                                     
Total temporarily impaired securities $ 96,010   $ (204)   $ 453,716   $ (127,527)   $ 549,726   $ (127,731)
                                     
      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 nine-month periods ended September 30, 2012 and 2011:

      Three Months Ended     Nine Months Ended
      September 30,     September 30,
(dollar amounts in thousands)   2012     2011     2012     2011
  Gross gains on sales of securities $ 6,253   $ 174   $ 7,736   $ 16,532
  Gross (losses) on sales of securities   (1,968)     (160)     (2,224)     (10,624)
Net gain on sales of securities $ 4,285   $ 14   $ 5,512   $ 5,908
                         
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 September 30, 2012:

Credit Ratings of Selected Investment Securities (1)            
(dollar amounts in thousands)             Credit Rating of Fair Value Amount
      Amortized                          
      Cost   Fair Value     AAA   AA +/-   A +/-   BBB +/-   <BBB-
  Private-label CMO securities $ 80,505 $ 75,782   $ 24,092 $ --- $ 19,733 $ 4,593 $ 27,364
  Alt-A mortgage-backed securities   29,805   27,351     ---   27,351   ---   ---   ---
  Pooled-trust-preferred securities   197,382   78,926     ---   ---   21,053   ---   57,873
Total at September 30, 2012 $ 307,692 $ 182,059   $ 24,092 $ 27,351 $ 40,786 $ 4,593 $ 85,237
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 September 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                    
September 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) $ 41,645 $ 30,653 $ 9,486 $ (21,167) C 31/36 11 % 15 % --- %
Alesco IV (1)   21,407   8,242   471   (7,771) C 29/40 18   24   ---  
ICONS   20,000   20,000   12,440   (7,560) BB 23/24 3   14   45  
I-Pre TSL II   30,803   30,723   21,053   (9,670) A 23/25 5   13   74  
MM Comm III   7,402   7,072   3,878   (3,194) B 5/10 7   13   32  
Pre TSL IX (1)   5,000   3,955   1,351   (2,604) C 32/47 22   13   5  
Pre TSL X (1)   18,157   9,914   4,979   (4,935) C 34/51 31   17   ---  
Pre TSL XI (1)   25,601   22,307   7,923   (14,384) C 41/62 29   17   ---  
Pre TSL XIII (1)   28,790   22,702   7,566   (15,136) C 40/63 35   28   1  
Reg Diversified (1)   25,500   6,908   365   (6,543) D 23/44 46   20   ---  
Soloso (1)   12,500   3,906   554   (3,352) C 40/65 30   20   ---  
Tropic III   31,000   31,000   8,860   (22,140) CC 24/43 36   25   27  
Total $ 267,805 $ 197,382 $ 78,926 $ (118,456)                
                                   
(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.
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     Nine Months Ended
      September 30,     September 30,
(dollar amounts in thousands)   2012     2011     2012     2011
Available-for-sale and other securities:                      
  Alt-A Mortgage-backed $ ---   $ (131)   $ ---   $ (361)
  Pooled-trust-preferred   ---     (204)     ---     (3,410)
  Private label CMO   (116)     (1,029)     (1,601)     (1,940)
  Total debt securities   (116)     (1,364)     (1,601)     (5,711)
  Equity securities   ---     ---     (5)     ---
Total available-for-sale and other securities $ (116)   $ (1,364)   $ (1,606)   $ (5,711)
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 nine-month periods ended September 30, 2012 and 2011 as follows:

    Three Months Ended   Nine Months Ended
    September 30,   September 30,
(dollar amounts in thousands)   2012     2011     2012     2011
Balance, beginning of period $ 57,152   $ 54,402   $ 56,764   $ 54,536
  Reductions from sales/maturities   (7,848)     ---     (8,945)     (4,481)
  Credit losses not previously recognized   ---     26     ---     26
  Additional credit losses   116     1,338     1,601     5,685
Balance, end of period $ 49,420   $ 55,766   $ 49,420   $ 55,766