Quarterly report pursuant to Section 13 or 15(d)

AVAILABLE-FOR-SALE AND OTHER SECURITIES (Tables)

v3.7.0.1
AVAILABLE-FOR-SALE AND OTHER SECURITIES (Tables)
 3 Months Ended
Mar. 31, 2017
Investments, Debt and Equity Securities [Abstract]  
Contractual maturities of investment securities
Listed below are the contractual maturities of available-for-sale and other securities at March 31, 2017 and December 31, 2016:
 
March 31, 2017
 
December 31, 2016
(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
$
6,379

 
$
6,383

 
$
4,978

 
$
4,988

After 1 year through 5 years
502

 
507

 
502

 
509

After 5 years through 10 years
—

 
—

 
—

 
—

After 10 years
—

 
—

 
—

 
—

Total U.S. Treasury
6,881

 
6,890

 
5,480

 
5,497

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

 
—

 
—

 
—

After 1 year through 5 years
41,925

 
41,995

 
46,591

 
46,762

After 5 years through 10 years
273,555

 
274,738

 
173,941

 
176,404

After 10 years
11,099,533

 
10,905,134

 
10,630,929

 
10,450,176

Total Federal agencies: mortgage-backed securities
11,415,013

 
11,221,867

 
10,851,461

 
10,673,342

Other agencies:
 
 
 
 
 
 
 
1 year or less
4,354

 
4,417

 
4,302

 
4,367

After 1 year through 5 years
9,503

 
9,690

 
5,092

 
5,247

After 5 years through 10 years
75,673

 
75,736

 
63,618

 
63,928

After 10 years
—

 
—

 
—

 
—

Total other agencies
89,530

 
89,843

 
73,012

 
73,542

Total U.S. Treasury, Federal agency, and other agency securities
11,511,424

 
11,318,600

 
10,929,953

 
10,752,381

Municipal securities:
 
 
 
 
 
 
 
1 year or less
180,536

 
178,416

 
169,636

 
166,887

After 1 year through 5 years
951,261

 
953,776

 
933,893

 
933,903

After 5 years through 10 years
1,481,804

 
1,493,797

 
1,463,459

 
1,464,583

After 10 years
689,993

 
691,165

 
693,440

 
684,684

Total municipal securities
3,303,594

 
3,317,154

 
3,260,428

 
3,250,057

Asset-backed securities:
 
 
 
 
 
 
 
1 year or less
—

 
—

 
—

 
—

After 1 year through 5 years
88,216

 
88,681

 
80,700

 
80,560

After 5 years through 10 years
168,634

 
170,102

 
223,352

 
224,565

After 10 years
537,534

 
508,154

 
520,072

 
488,356

Total asset-backed securities
794,384

 
766,937

 
824,124

 
793,481

Corporate debt:
 
 
 
 
 
 
 
1 year or less
59,021

 
59,429

 
43,223

 
43,603

After 1 year through 5 years
64,529

 
66,027

 
78,430

 
80,196

After 5 years through 10 years
34,681

 
35,362

 
32,523

 
32,865

After 10 years
36,098

 
37,863

 
40,361

 
42,019

Total corporate debt
194,329

 
198,681

 
194,537

 
198,683

Other:
 
 
 
 
 
 
 
1 year or less
1,652

 
1,652

 
1,650

 
1,650

After 1 year through 5 years
2,300

 
2,275

 
2,302

 
2,283

After 5 years through 10 years
—

 
—

 
—

 
—

After 10 years
46

 
46

 
10

 
10

Nonmarketable equity securities
552,628

 
552,628

 
547,704

 
547,704

Mutual funds
14,331

 
14,331

 
15,286

 
15,286

Marketable equity securities
861

 
1,301

 
861

 
1,302

Total other
571,818

 
572,233

 
567,813

 
568,235

Total available-for-sale and other securities
$
16,375,549

 
$
16,173,605

 
$
15,776,855

 
$
15,562,837

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 March 31, 2017 and December 31, 2016:
 
 
 
Unrealized
 
 
(dollar amounts in thousands)
Amortized
Cost
 
Gross
Gains
 
Gross
Losses
 
Fair Value
March 31, 2017
 
 
 
 
 
 
 
U.S. Treasury
$
6,881

 
$
9

 
$
—

 
$
6,890

Federal agencies:
 
 
 
 
 
 
 
Mortgage-backed securities
11,415,013

 
10,882

 
(204,028
)
 
11,221,867

Other agencies
89,530

 
356

 
(43
)
 
89,843

Total U.S. Treasury, Federal agency securities
11,511,424

 
11,247

 
(204,071
)
 
11,318,600

Municipal securities
3,303,594

 
39,687

 
(26,127
)
 
3,317,154

Asset-backed securities
794,384

 
2,225

 
(29,672
)
 
766,937

Corporate debt
194,329

 
4,357

 
(5
)
 
198,681

Other securities
571,818

 
441

 
(26
)
 
572,233

Total available-for-sale and other securities
$
16,375,549

 
$
57,957

 
$
(259,901
)
 
$
16,173,605

 
 
 
Unrealized
 
 
(dollar amounts in thousands)
Amortized
Cost
 
Gross
Gains
 
Gross
Losses
 
Fair Value
December 31, 2016
 
 
 
 
 
 
 
U.S. Treasury
$
5,480

 
$
17

 
$
—

 
$
5,497

Federal agencies:
 
 
 
 
 
 
 
Mortgage-backed securities
10,851,461

 
12,548

 
(190,667
)
 
10,673,342

Other agencies
73,012

 
536

 
(6
)
 
73,542

Total U.S. Treasury, Federal agency securities
10,929,953

 
13,101

 
(190,673
)
 
10,752,381

Municipal securities
3,260,428

 
28,431

 
(38,802
)
 
3,250,057

Asset-backed securities
824,124

 
1,492

 
(32,135
)
 
793,481

Corporate debt
194,537

 
4,161

 
(15
)
 
198,683

Other securities
567,813

 
441

 
(19
)
 
568,235

Total available-for-sale and other securities
$
15,776,855

 
$
47,626

 
$
(261,644
)
 
$
15,562,837

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 March 31, 2017 and December 31, 2016:
 
Less than 12 Months
 
Over 12 Months
 
Total
(dollar amounts in thousands)
Fair Value
 
Unrealized
Losses
 
Fair Value
 
Unrealized
Losses
 
Fair Value
 
Unrealized
Losses
March 31, 2017
 
 
 
 
 
 
 
 
 
 
 
Federal agencies:
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities
$
9,846,004

 
$
(202,610
)
 
$
40,432

 
$
(1,418
)
 
$
9,886,436

 
$
(204,028
)
Other agencies
25,475

 
(43
)
 
—

 
—

 
25,475

 
(43
)
Total Federal agency securities
9,871,479

 
(202,653
)
 
40,432

 
(1,418
)
 
9,911,911

 
(204,071
)
Municipal securities
859,848

 
(19,825
)
 
257,829

 
(6,302
)
 
1,117,677

 
(26,127
)
Asset-backed securities
260,870

 
(2,268
)
 
201,436

 
(27,404
)
 
462,306

 
(29,672
)
Corporate debt
694

 
(5
)
 
200

 
—

 
894

 
(5
)
Other securities
785

 
(15
)
 
1,489

 
(11
)
 
2,274

 
(26
)
Total temporarily impaired securities
$
10,993,676

 
$
(224,766
)
 
$
501,386

 
$
(35,135
)
 
$
11,495,062

 
$
(259,901
)
 
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, 2016
 
 
 
 
 
 
 
 
 
 
 
Federal agencies:
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities
$
8,908,470

 
$
(189,318
)
 
$
41,706

 
$
(1,349
)
 
$
8,950,176

 
$
(190,667
)
Other agencies
924

 
(6
)
 
—

 
—

 
924

 
(6
)
Total Federal agency securities
8,909,394

 
(189,324
)
 
41,706

 
(1,349
)
 
8,951,100

 
(190,673
)
Municipal securities
1,412,152

 
(29,175
)
 
272,292

 
(9,627
)
 
1,684,444

 
(38,802
)
Asset-backed securities
361,185

 
(3,043
)
 
178,924

 
(29,092
)
 
540,109

 
(32,135
)
Corporate debt
3,567

 
(15
)
 
200

 
—

 
3,767

 
(15
)
Other securities
790

 
(11
)
 
1,492

 
(8
)
 
2,282

 
(19
)
Total temporarily impaired securities
$
10,687,088

 
$
(221,568
)
 
$
494,614

 
$
(40,076
)
 
$
11,181,702

 
$
(261,644
)
Realized securities gains and losses
The following table is a summary of realized securities gains and losses for the three-month periods ended March 31, 2017 and 2016:
 
 
Three months ended
March 31,
(dollar amounts in thousands)
 
2017
 
2016
Gross gains on sales of securities
 
$
545

 
$
—

Gross (losses) on sales of securities
 
(553
)
 
—

Net gain on sales of securities
 
$
(8
)
 
$
—

Trust Preferred Securities Data
The following table summarizes the relevant characteristics of the Company's CDO securities portfolio, which are included in asset-backed securities, at March 31, 2017. 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 Securities
(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
$
18,594

 
$
18,594

 
$
15,416

 
$
(3,178
)
 
BB
 
19/21
 
7
 
13
 
55
MM Comm III
4,573

 
4,369

 
3,625

 
(744
)
 
BB+
 
5/8
 
5
 
6
 
39
Pre TSL IX (1)
5,000

 
3,955

 
3,285

 
(670
)
 
C
 
27/37
 
16
 
8
 
10
Pre TSL XI (1)
25,000

 
19,413

 
15,923

 
(3,490
)
 
C
 
43/53
 
14
 
8
 
14
Reg Diversified (1)
25,500

 
4,195

 
1,832

 
(2,363
)
 
D
 
20/36
 
33
 
8
 
—
Tropic III
31,000

 
31,000

 
19,411

 
(11,589
)
 
BB
 
27/36
 
16
 
7
 
42
Total at March 31, 2017
$
109,667

 
$
81,526

 
$
59,492

 
$
(22,034
)
 
 
 
 
 
 
 
 
 
 
Total at December 31, 2016
$
137,197

 
$
101,210

 
$
76,003

 
$
(25,207
)
 
 
 
 
 
 
 
 
 
 
(1)
Security was determined to have OTTI. As such, the amortized cost 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 periods ended March 31, 2017 and 2016, 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
March 31,
(dollar amounts in thousands)
 
2017
 
2016
Available-for-sale and other securities:
 
 
 
 
Collateralized Debt Obligations
 
$
—

 
$
—

Municipal Securities
 
24

 
—

Total available-for-sale and other securities
 
$
24

 
$
—


The following table rolls forward the OTTI recognized in earnings on debt securities held by Huntington for the three-month periods ended March 31, 2017 and 2016 as follows:
 
 
Three Months Ended
March 31,
(dollar amounts in thousands)
 
2017
 
2016
Balance, beginning of period
 
$
11,796

 
$
18,368

Reductions from sales
 
(4,558
)
 
—

Additional credit losses
 
24

 
—

Balance, end of period
 
$
7,262

 
$
18,368