Quarterly report pursuant to Section 13 or 15(d)

AVAILABLE-FOR-SALE AND OTHER SECURITIES (Tables)

v3.5.0.2
AVAILABLE-FOR-SALE AND OTHER SECURITIES (Tables)
 9 Months Ended
Sep. 30, 2016
Investments, Debt and Equity Securities [Abstract]  
Contractual maturities of investment securities
Listed below are the contractual maturities (1 year or less, 1-5 years, 6-10 years, and over 10 years) of available-for-sale and other securities at September 30, 2016 and December 31, 2015:
 
September 30, 2016
 
December 31, 2015
(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
$
1,000

 
$
1,000

 
$
—

 
$
—

After 1 year through 5 years
5,474

 
5,509

 
5,457

 
5,472

After 5 years through 10 years
—

 
—

 
—

 
—

After 10 years
—

 
—

 
—

 
—

Total U.S. Treasury
6,474

 
6,509

 
5,457

 
5,472

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

 
—

 
51,146

 
51,050

After 1 year through 5 years
112,813

 
114,408

 
111,655

 
113,393

After 5 years through 10 years
268,553

 
274,530

 
254,397

 
257,765

After 10 years
10,427,666

 
10,491,942

 
4,088,120

 
4,099,480

Total Federal agencies: mortgage-backed securities
10,809,032

 
10,880,880

 
4,505,318

 
4,521,688

Other agencies:
 
 
 
 
 
 
 
1 year or less
1,851

 
1,878

 
801

 
805

After 1 year through 5 years
9,806

 
10,132

 
9,101

 
9,395

After 5 years through 10 years
111,561

 
113,761

 
105,174

 
105,713

After 10 years
—

 
—

 
—

 
—

Total other agencies
123,218

 
125,771

 
115,076

 
115,913

Total U.S. Treasury, Federal agency, and other agency securities
10,938,724

 
11,013,160

 
4,625,851

 
4,643,073

Municipal securities:
 
 
 
 
 
 
 
1 year or less
171,499

 
165,902

 
281,644

 
280,823

After 1 year through 5 years
960,375

 
968,651

 
587,664

 
587,345

After 5 years through 10 years
1,434,758

 
1,440,241

 
1,053,502

 
1,048,550

After 10 years
727,541

 
736,367

 
509,133

 
539,678

Total municipal securities
3,294,173

 
3,311,161

 
2,431,943

 
2,456,396

Asset-backed securities:
 
 
 
 
 
 
 
1 year or less
—

 
—

 
—

 
—

After 1 year through 5 years
174,949

 
175,889

 
110,115

 
109,300

After 5 years through 10 years
292,649

 
295,441

 
128,342

 
128,208

After 10 years
639,277

 
609,852

 
662,602

 
623,905

Total asset-backed securities
1,106,875

 
1,081,182

 
901,059

 
861,413

Corporate debt:
 
 
 
 
 
 
 
1 year or less
79,248

 
80,146

 
300

 
302

After 1 year through 5 years
345,632

 
354,698

 
356,513

 
360,653

After 5 years through 10 years
66,223

 
68,428

 
107,394

 
105,522

After 10 years
48,861

 
49,219

 
—

 
—

Total corporate debt
539,964

 
552,491

 
464,207

 
466,477

Other:
 
 
 
 
 
 
 
1 year or less
—

 
—

 
—

 
—

After 1 year through 5 years
3,950

 
3,947

 
3,950

 
3,898

After 5 years through 10 years
—

 
—

 
—

 
—

After 10 years
—

 
—

 
—

 
—

Non-marketable equity securities
492,080

 
492,080

 
332,786

 
332,786

Mutual funds
2,113

 
2,553

 
10,604

 
10,604

Marketable equity securities
13,800

 
13,800

 
523

 
794

Total other
511,943

 
512,380

 
347,863

 
348,082

Total available-for-sale and other securities
$
16,391,679

 
$
16,470,374

 
$
8,770,923

 
$
8,775,441

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, 2016 and December 31, 2015:
 
 
 
Unrealized
 
 
(dollar amounts in thousands)
Amortized
Cost
 
Gross
Gains
 
Gross
Losses
 
Fair Value
September 30, 2016
 
 
 
 
 
 
 
U.S. Treasury
$
6,474

 
$
35

 
$
—

 
$
6,509

Federal agencies:
 
 
 
 
 
 
 
Mortgage-backed securities
10,809,032

 
79,940

 
(8,092
)
 
10,880,880

Other agencies
123,218

 
2,553

 
—

 
125,771

Total U.S. Treasury, Federal agency securities
10,938,724

 
82,528

 
(8,092
)
 
11,013,160

Municipal securities
3,294,173

 
54,452

 
(37,464
)
 
3,311,161

Asset-backed securities
1,106,875

 
5,633

 
(31,326
)
 
1,081,182

Corporate debt
539,964

 
12,838

 
(311
)
 
552,491

Other securities
511,943

 
440

 
(3
)
 
512,380

Total available-for-sale and other securities
$
16,391,679

 
$
155,891

 
$
(77,196
)
 
$
16,470,374

 
 
 
Unrealized
 
 
(dollar amounts in thousands)
Amortized
Cost
 
Gross
Gains
 
Gross
Losses
 
Fair Value
December 31, 2015
 
 
 
 
 
 
 
U.S. Treasury
$
5,457

 
$
15

 
$
—

 
$
5,472

Federal agencies:
 
 
 
 
 
 
 
Mortgage-backed securities
4,505,318

 
30,078

 
(13,708
)
 
4,521,688

Other agencies
115,076

 
888

 
(51
)
 
115,913

Total U.S. Treasury, Federal agency securities
4,625,851

 
30,981

 
(13,759
)
 
4,643,073

Municipal securities
2,431,943

 
51,558

 
(27,105
)
 
2,456,396

Asset-backed securities
901,059

 
535

 
(40,181
)
 
861,413

Corporate debt
464,207

 
4,824

 
(2,554
)
 
466,477

Other securities
347,863

 
271

 
(52
)
 
348,082

Total available-for-sale and other securities
$
8,770,923

 
$
88,169

 
$
(83,651
)
 
$
8,775,441

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, 2016 and December 31, 2015:
 
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, 2016
 
 
 
 
 
 
 
 
 
 
 
Federal agencies:
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities
$
2,583,032

 
$
(7,836
)
 
$
30,742

 
$
(256
)
 
$
2,613,774

 
$
(8,092
)
Other agencies
—

 
—

 
—

 
—

 
—

 
—

Total Federal agency securities
2,583,032

 
(7,836
)
 
30,742

 
(256
)
 
2,613,774

 
(8,092
)
Municipal securities
911,170

 
(30,367
)
 
178,540

 
(7,097
)
 
1,089,710

 
(37,464
)
Asset-backed securities
199,279

 
(2,085
)
 
125,304

 
(29,241
)
 
324,583

 
(31,326
)
Corporate debt
23,663

 
(306
)
 
299

 
(5
)
 
23,962

 
(311
)
Other securities
—

 
—

 
1,497

 
(3
)
 
1,497

 
(3
)
Total temporarily impaired securities
$
3,717,144

 
$
(40,594
)
 
$
336,382

 
$
(36,602
)
 
$
4,053,526

 
$
(77,196
)
 
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, 2015
 
 
 
 
 
 
 
 
 
 
 
Federal agencies:
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities
$
1,658,516

 
$
(11,341
)
 
$
84,147

 
$
(2,367
)
 
$
1,742,663

 
$
(13,708
)
Other agencies
37,982

 
(51
)
 
—

 
—

 
37,982

 
(51
)
Total Federal agency securities
1,696,498

 
(11,392
)
 
84,147

 
(2,367
)
 
1,780,645

 
(13,759
)
Municipal securities
570,916

 
(15,992
)
 
248,204

 
(11,113
)
 
819,120

 
(27,105
)
Asset-backed securities
552,275

 
(5,791
)
 
207,639

 
(34,390
)
 
759,914

 
(40,181
)
Corporate debt
167,144

 
(1,673
)
 
21,965

 
(881
)
 
189,109

 
(2,554
)
Other securities
772

 
(28
)
 
1,476

 
(24
)
 
2,248

 
(52
)
Total temporarily impaired securities
$
2,987,605

 
$
(34,876
)
 
$
563,431

 
$
(48,775
)
 
$
3,551,036

 
$
(83,651
)
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, 2016 and 2015:
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
(dollar amounts in thousands)
2016
 
2015
 
2016
 
2015
Gross gains on sales of securities
$
3,770

 
$
6,173

 
$
7,161

 
$
6,256

Gross (losses) on sales of securities
(2,739
)
 
(5,985
)
 
(5,474
)
 
(5,986
)
Net gain on sales of securities
$
1,031

 
$
188

 
$
1,687

 
$
270

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, 2016. 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, 2016
(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)
ICONS
$
18,912

 
$
18,912

 
$
15,228

 
$
(3,684
)
 
BB
 
19/21
 
7
 
14
 
52
MM Comm III
4,633

 
4,426

 
3,553

 
(873
)
 
BB
 
5/8
 
5
 
6
 
34
Pre TSL IX
5,000

 
3,955

 
3,155

 
(800
)
 
C
 
27/38
 
18
 
10
 
8
Pre TSL XI
25,000

 
19,733

 
15,223

 
(4,510
)
 
C
 
44/53
 
12
 
7
 
14
Pre TSL XIII
27,530

 
19,277

 
16,524

 
(2,753
)
 
C
 
44/54
 
10
 
10
 
28
Reg Diversified (1)
25,500

 
4,610

 
1,749

 
(2,861
)
 
D
 
22/38
 
33
 
7
 
—
Tropic III
31,000

 
31,000

 
18,377

 
(12,623
)
 
BB
 
28/37
 
16
 
7
 
39
Total at September 30, 2016
$
137,575

 
$
101,913

 
$
73,809

 
$
(28,104
)
 
 
 
 
 
 
 
 
 
 
Total at December 31, 2015
$
179,574

 
$
131,911

 
$
100,338

 
$
(31,654
)
 
 
 
 
 
 
 
 
 
 
(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.
Schedule of other than temporary impairment
For the three-month and nine-month periods ended September 30, 2016 and 2015, 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)
 
2016
 
2015
 
2016
 
2015
Available-for-sale and other securities:
 
 
 
 
 
 
 
 
Collateralized Debt Obligations
 
$
—

 
$
2,440

 
$
—

 
$
2,440

Municipal Securities
 
$
—

 
$
—

 
$
76

 
$
—

Total available-for-sale and other securities
 
$
—

 
$
2,440

 
$
76

 
$
2,440


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, 2016 and 2015 as follows:
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
(dollar amounts in thousands)
 
2016
 
2015
 
2016
 
2015
Balance, beginning of period
 
$
9,831

 
$
30,869

 
$
18,368

 
$
30,869

Reductions from sales
 
(76
)
 
(14,941
)
 
(8,689
)
 
(14,941
)
Additional credit losses
 
—

 
2,440

 
76

 
2,440

Balance, end of period
 
$
9,755

 
$
18,368

 
$
9,755

 
$
18,368