Huntington National Bank 2012 Annual Report Download - page 150

142
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)
At December 31, 2012, the carrying value of investment securities pledged to secure public and trust deposits, trading account
liabilities, U.S. Treasury demand notes, and security repurchase agreements totaled $3.1 billion. There were no securities of a single
issuer, which are not governmental or government-sponsored, that exceeded 10% of shareholders’ equity at December 31, 2012.
The following table is a summary of realized securities gains and losses for the years ended December 31, 2012, 2011 and 2010:
(dollar amounts in thousands) 2012 2011 2010
Gross gains on sales of securities $ 8,612 $ 18,641 $ 28,992
Gross (losses) on sales of securities (2,224) (14,959) (15,544)
Net gain (loss) on sales of securities $ 6,388 $ 3,682 $ 13,448
Alt-A Mortgage-Backed, Pooled-Trust-Preferred, and Private-Label CMO Securities
Our three highest risk segments of our investment portfolio are the Alt-A mortgage-backed, pooled-trust-preferred, and 2003-
2006 vintage private-label CMO portfolios. The Alt-A mortgage-backed securities and pooled-trust-preferred securities are in the
asset-backed securities portfolio. These segments are in run-off, and we have not purchased these types of securities since 2008. The
performance of the underlying securities in each of these segments reflects the deterioration of trust preferred issuers and 2003 to 2006
non-agency mortgages. Each of these securities in these three segments is subjected to a rigorous review of its projected cash flows.
These reviews are supported with analysis from independent third parties.
The following table presents the credit ratings for our Alt-A mortgage-backed, pooled-trust-preferred, and private label CMO
securities as of December 31, 2012 and 2011:
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 $ 75,557 $ 71,568 $ 22,793 $ --- $ 13,425 $ 3,801 $ 31,549
Alt-A mortgage-backed securities 27,712 25,742 --- 25,742 --- --- ---
Pooled-trust-preferred securities 195,760 84,296 --- --- 22,338 --- 61,958
Total at December 31, 2012 $ 299,029 $ 181,606 $ 22,793 $ 25,742 $ 35,763 $ 3,801 $ 93,507
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.
Negative changes to the above credit ratings would generally result in an increase of our risk-weighted assets, and a reduction to
our regulatory capital ratios.