Quarterly report pursuant to Section 13 or 15(d)

Available-for-Sale and Other Securities (Tables)

v2.4.0.8
Available-for-Sale and Other Securities (Tables)
 3 Months Ended
Mar. 31, 2014
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 March 31, 2014 and December 31, 2013:

        March 31, 2014   December 31, 2013
        Amortized           Amortized      
(dollar amounts in thousands)   Cost     Fair Value     Cost     Fair Value
  U.S. Treasury:                      
    Under 1 year $ 50,278   $ 50,471   $ 50,793   $ 51,086
    1-5 years   506     516     507     516
    6-10 years   ---     ---     ---     ---
    Over 10 years   1     2     1     2
  Total U.S. Treasury   50,785     50,989     51,301     51,604
  Federal agencies: mortgage-backed securities:                      
    Under 1 year   14,961     15,018     16,548     16,607
    1-5 years   262,104     264,306     164,794     166,946
    6-10 years   333,078     337,954     440,116     443,456
    Over 10 years   3,948,814     3,948,601     2,940,986     2,939,212
  Total Federal agencies: mortgage-backed securities   4,558,957     4,565,879     3,562,444     3,566,221
  Other agencies:                      
    Under 1 year   2,633     2,682     2,833     2,880
    1-5 years   41,070     42,044     291,726     297,510
    6-10 years   27,513     27,626     19,318     19,498
    Over 10 years   62,101     62,248     ---     ---
  Total other agencies   133,317     134,600     313,877     319,888
Total U.S. Government backed agencies   4,743,059     4,751,468     3,927,622     3,937,713
Municipal securities:                      
  Under 1 year   224,398     222,746     191,788     190,762
  1-5 years   182,603     186,351     206,719     211,916
  6-10 years   612,741     621,873     556,873     554,772
  Over 10 years   190,145     195,016     184,883     188,542
Total municipal securities   1,209,887     1,225,986     1,140,263     1,145,992
Private-label CMO:                      
  Under 1 year   ---     ---     ---     ---
  1-5 years   ---     ---     ---     ---
  6-10 years   1,837     1,924     1,997     2,089
  Over 10 years   47,568     45,603     49,241     47,015
Total private-label CMO   49,405     47,527     51,238     49,104
Asset-backed securities:                      
  Under 1 year   5,323     5,322     ---     ---
  1-5 years   345,512     347,760     434,825     438,156
  6-10 years   84,864     83,950     260,354     260,880
  Over 10 years   568,329     496,324     477,105     392,004
Total asset-backed securities   1,004,028     933,356     1,172,284     1,091,040
Covered bonds:                      
  Under 1 year   ---     ---     ---     ---
  1-5 years   ---     ---     280,595     285,874
  6-10 years   ---     ---     ---     ---
  Over 10 years   ---     ---     ---     ---
Total covered bonds   ---     ---     280,595     285,874
Corporate debt:                      
  Under 1 year   902     909     903     916
  1-5 years   266,068     277,104     283,079     292,989
  6-10 years   179,652     174,407     161,398     152,608
  Over 10 years   ---     ---     10,113     10,727
Total corporate debt   446,622     452,420     455,493     457,240
Other:                      
  Under 1 year   750     750     500     500
  1-5 years   3,150     3,070     3,399     3,327
  6-10 years   ---     ---     ---     ---
  Over 10 years   ---     ---     ---     ---
  Non-marketable equity securities   323,150     323,151     320,991     320,992
  Marketable equity securities   16,561     17,062     16,522     16,971
Total other   343,611     344,033     341,412     341,790
Total available-for-sale and other securities $ 7,796,612   $ 7,754,790   $ 7,368,907   $ 7,308,753
                           
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
March 31, 2014                      
U.S. Treasury $ 50,785   $ 204   $ ---   $ 50,989
Federal agencies:                      
  Mortgage-backed securities   4,558,957     42,926     (36,004)     4,565,879
  Other agencies   133,317     1,389     (106)     134,600
Total U.S. Government                      
  backed securities   4,743,059     44,519     (36,110)     4,751,468
Municipal securities   1,209,887     25,767     (9,668)     1,225,986
Private-label CMO   49,405     1,218     (3,096)     47,527
Asset-backed securities   1,004,028     3,779     (74,451)     933,356
Covered bonds   ---     ---     ---     ---
Corporate debt   446,622     11,716     (5,918)     452,420
Other securities   343,611     551     (129)     344,033
Total available-for-sale and other securities $ 7,796,612   $ 87,550   $ (129,372)   $ 7,754,790
                         
            Unrealized      
      Amortized     Gross     Gross     Fair
(dollar amounts in thousands)   Cost     Gains     Losses     Value
December 31, 2013                      
U.S. Treasury $ 51,301   $ 303   $ ---   $ 51,604
Federal agencies:                      
  Mortgage-backed securities   3,562,444     42,319     (38,542)     3,566,221
  Other agencies   313,877     6,105     (94)     319,888
Total U.S. Government                      
  backed securities   3,927,622     48,727     (38,636)     3,937,713
Municipal securities   1,140,263     18,825     (13,096)     1,145,992
Private-label CMO   51,238     1,188     (3,322)     49,104
Asset-backed securities   1,172,284     6,771     (88,015)     1,091,040
Covered bonds   280,595     5,279     ---     285,874
Corporate debt   455,493     11,241     (9,494)     457,240
Other securities   341,412     511     (133)     341,790
Total available-for-sale and other securities $ 7,368,907   $ 92,542   $ (152,696)   $ 7,308,753
                         
Available for sale securities in an unrealized loss position table text block
      Less than 12 Months     Over 12 Months     Total
      Fair     Unrealized     Fair     Unrealized     Fair     Unrealized
(dollar amounts in thousands )   Value     Losses     Value     Losses     Value     Losses
March 31, 2014                                  
U.S. Treasury $ ---   $ ---   $ ---   $ ---   $ ---   $ ---
Federal agencies:                                  
  Mortgage-backed securities   1,836,191     (32,057)     52,032     (3,947)     1,888,223     (36,004)
  Other agencies   13,268     (106)     ---     ---     13,268     (106)
Total U.S. Government                                  
  backed securities   1,849,459     (32,163)     52,032     (3,947)     1,901,491     (36,110)
Municipal securities   472,500     (8,802)     15,409     (866)     487,909     (9,668)
Private-label CMO   ---     ---     22,832     (3,096)     22,832     (3,096)
Asset-backed securities   414,910     (7,699)     109,969     (66,752)     524,879     (74,451)
Covered bonds   ---     ---     ---     ---     ---     ---
Corporate debt   113,744     (2,323)     71,480     (3,595)     185,224     (5,918)
Other securities   1,420     (79)     1,949     (50)     3,369     (129)
                                     
Total temporarily impaired securities $ 2,852,033   $ (51,066)   $ 273,671   $ (78,306)   $ 3,125,704   $ (129,372)
                                     
      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, 2013                                  
U.S. Treasury $ ---   $ ---   $ ---   $ ---   $ ---   $ ---
Federal agencies:                                  
  Mortgage-backed securities   1,628,454     (37,174)     12,682     (1,368)     1,641,136     (38,542)
  Other agencies   2,069     (94)     ---     ---     2,069     (94)
Total U.S. Government                                  
  backed securities   1,630,523     (37,268)     12,682     (1,368)     1,643,205     (38,636)
Municipal securities   551,114     (12,395)     7,531     (701)     558,645     (13,096)
Private-label CMO   ---     ---     22,639     (3,322)     22,639     (3,322)
Asset-backed securities   391,665     (9,720)     107,419     (78,295)     499,084     (88,015)
Covered bonds   ---     ---     ---     ---     ---     ---
Corporate debt   146,308     (7,729)     26,155     (1,765)     172,463     (9,494)
Other securities   3,078     (72)     2,530     (61)     5,608     (133)
                                     
Total temporarily impaired securities $ 2,722,688   $ (67,184)   $ 178,956   $ (85,512)   $ 2,901,644   $ (152,696)
                                     
Realized securities gains and losses

The following table is a summary of realized securities gains and losses for the three-month and periods ended March 31, 2014 and 2013:

        Three Months Ended
        March 31,
(dollar amounts in thousands)     2014     2013
  Gross gains on sales of securities   $ 16,990   $ 199
  Gross (losses) on sales of securities     (20)     (12)
Net gain on sales of securities   $ 16,970   $ 187
               
Trust Preferred Securities Data

The fair values of the private label CMO and CDO assets have been impacted by various market conditions. The unrealized losses were primarily the result of wider liquidity spreads on asset-backed securities and increased market volatility on non-agency mortgage and asset-backed securities that are collateralized by certain mortgage loans. In addition, the expected average lives of the asset-backed securities backed by trust-preferred securities have been extended, due to changes in the expectations of when the underlying securities would be repaid. The contractual terms and / or cash flows of the investments do not permit the issuer to settle the securities at a price less than the amortized cost. Huntington does not intend to sell, nor does it believe it will be required to sell these securities until the fair value is recovered, which may be maturity and; therefore, does not consider them to be other-than-temporarily impaired at March 31, 2014.

 

The following table summarizes the relevant characteristics of our CDO securities portfolio, which are included in asset-backed securities, at March 31, 2014. 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.

Collateralized Debt Obligation Data                    
March 31, 2014                          
(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 $ 29,432 $ 14,847 $ (14,585) C 29/33 10 % 9 % --- %
ICONS   20,000   20,000   15,876   (4,124) BB 20/21 3   14   51  
I-Pre TSL II   12,321   12,291   11,626   (665) A 20/22 5   10   85  
MM Comm III   5,669   5,417   4,416   (1,001) BB 5/9 5   9   31  
Pre TSL IX (1)   5,000   3,955   2,318   (1,637) C 30/42 19   10   5  
Pre TSL XI (1)   25,000   20,982   10,685   (10,297) C 43/60 25   12   2  
Pre TSL XIII (1)   27,813   20,916   12,622   (8,294) C 44/61 26   20   4  
Reg Diversified (1)   25,500   6,908   913   (5,995) D 23/41 38   10   ---  
Soloso (1)   12,500   2,440   257   (2,183) C 38/61 28   20   ---  
Tropic III   31,000   31,000   13,563   (17,437) CCC+ 26/40 24   11   37  
Total at March 31, 2014 $ 206,449 $ 153,341 $ 87,123 $ (66,218)                
Total at December 31, 2013 $ 214,419 $ 161,730 $ 84,136 $ (77,594)                
                                   
(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
        March 31,
(dollar amounts in thousands)     2014     2013
Available-for-sale and other securities:            
  Alt-A Mortgage-backed   $ ---   $ ---
  Pooled-trust-preferred     ---     (360)
  Private label CMO     ---     (336)
  Total debt securities     ---     (696)
  Equity securities     ---     ---
Total available-for-sale and other securities   $ ---   $ (696)
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 three-month periods ended March 31, 2014 and 2013 as follows:

      Three Months Ended
      March 31,
(dollar amounts in thousands)     2014     2013
Balance, beginning of period   $ 30,869   $ 49,433
  Reductions from sales/maturities     ---     ---
  Credit losses not previously recognized     ---     ---
  Additional credit losses     ---     696
Balance, end of period   $ 30,869   $ 50,129