13. OTHER COMPREHENSIVE INCOME
The components of Huntington's OCI in the three years ended December 31, 2013, 2012, and 2011, were as follows:
| 2013 | ||||||||
| Tax (expense) | ||||||||
| (dollar amounts in thousands) | Pretax | Benefit | After-tax | |||||
| Noncredit-related impairment recoveries (losses) on debt securities not expected to be sold | $ | 235 | $ | (82) | $ | 153 | ||
| Unrealized holding gains (losses) on available-for-sale debt securities arising during the period | (125,919) | 44,191 | (81,728) | |||||
| Less: Reclassification adjustment for net gains (losses) included in net income | 6,211 | (2,174) | 4,037 | |||||
| Net change in unrealized holding gains (losses) on available-for-sale debt securities | (119,473) | 41,935 | (77,538) | |||||
| Unrealized holding (losses) gains on available-for-sale equity securities arising during the period | 151 | (53) | 98 | |||||
| Less: Reclassification adjustment for net losses (gains) included in net income | --- | --- | --- | |||||
| Net change in unrealized holding gains (losses) on available-for-sale equity securities | 151 | (53) | 98 | |||||
| Unrealized gains and losses on derivatives used in cash flow hedging relationships arising during the period | (86,240) | 30,184 | (56,056) | |||||
| Less: Reclassification adjustment for net losses (gains) losses included in net income | (15,188) | 5,316 | (9,872) | |||||
| Net change in unrealized gains (losses) on derivatives used in cash flow hedging relationships | (101,428) | 35,500 | (65,928) | |||||
| Re-measurement obligation | 136,452 | (47,758) | 88,694 | |||||
| Defined benefit pension items | (13,106) | 4,588 | (8,518) | |||||
| Net change in pension and post-retirement obligations | 123,346 | (43,170) | 80,176 | |||||
| Total other comprehensive (loss) income | $ | (97,404) | $ | 34,212 | $ | (63,192) | ||
| 2012 | ||||||||
| Tax (expense) | ||||||||
| (dollar amounts in thousands) | Pretax | Benefit | After-tax | |||||
| Noncredit-related impairment recoveries (losses) on debt securities not expected to be sold | $ | 19,215 | $ | (6,725) | $ | 12,490 | ||
| Unrealized holding gains (losses) on available-for-sale debt securities arising during the period | 90,318 | (32,137) | 58,181 | |||||
| Less: Reclassification adjustment for net gains (losses) included in net income | (4,769) | 1,669 | (3,100) | |||||
| Net change in unrealized holding gains (losses) on available-for-sale debt securities | 104,764 | (37,193) | 67,571 | |||||
| Net change in unrealized holding gains (losses) on available-for-sale equity securities | 344 | (120) | 224 | |||||
| Unrealized gains and losses on derivatives used in cash flow hedging relationships arising during the period | (5,476) | 1,907 | (3,569) | |||||
| Less: Reclassification adjustment for net losses (gains) losses included in net income | 14,992 | (5,237) | 9,755 | |||||
| Net change in unrealized gains (losses) on derivatives used in cash flow hedging relationships | 9,516 | (3,330) | 6,186 | |||||
| Net actuarial gains (losses) arising during the year | (105,527) | 36,934 | (68,593) | |||||
| Amortization of net actuarial loss and prior service cost included in income | 27,013 | (9,455) | 17,558 | |||||
| Net change in pension and post-retirement obligations | (78,514) | 27,479 | (51,035) | |||||
| Total other comprehensive income (loss) | $ | 36,110 | $ | (13,164) | $ | 22,946 | ||
| 2011 | ||||||||
| Tax (expense) | ||||||||
| (dollar amounts in thousands) | Pretax | Benefit | After-tax | |||||
| Noncredit-related impairment recoveries (losses) on debt securities not expected to be sold | $ | 11,537 | $ | (4,038) | $ | 7,499 | ||
| Unrealized holding (losses) gains on available-for-sale debt securities arising during the period | 95,586 | (33,455) | 62,131 | |||||
| Less: Reclassification adjustment for net gains (losses) included in net income | 3,681 | (1,288) | 2,393 | |||||
| Net change in unrealized holding (losses) gains on available-for-sale debt securities | 110,804 | (38,781) | 72,023 | |||||
| Net change in unrealized holding (losses) gains on available-for-sale equity securities | 612 | (215) | 397 | |||||
| Unrealized gains and losses on derivatives used in cash flow hedging relationships arising during the period | 4,875 | (1,703) | 3,172 | |||||
| Less: Reclassification adjustment for net losses (gains) losses included in net income | 3,107 | (1,091) | 2,016 | |||||
| Net change in unrealized gains (losses) on derivatives used in cash flow hedging relationships | 7,982 | (2,794) | 5,188 | |||||
| Net actuarial gains (losses) arising during the year | (104,146) | 36,451 | (67,695) | |||||
| Amortization of net actuarial loss and prior service cost included in income | 21,261 | (7,441) | 13,820 | |||||
| Net change in pension and post-retirement obligations | (82,885) | 29,010 | (53,875) | |||||
| Total other comprehensive (loss) income | $ | 36,513 | $ | (12,780) | $ | 23,733 | ||
Activity in accumulated OCI for the three years ended December 31, were as follows:
| (dollar amounts in thousands) | Unrealized gains and (losses) on debt securities (1) | Unrealized gains and (losses) on equity securities | Unrealized gains and (losses) on cash flow hedging derivatives | Unrealized gains (losses) for pension and other post-retirement obligations | Total | |||||||||
| Balance, January 1, 2011 | $ | (101,290) | $ | (427) | $ | 35,710 | $ | (131,489) | $ | (197,496) | ||||
| Period change | 72,023 | 397 | 5,188 | (53,875) | 23,733 | |||||||||
| Balance, December 31, 2011 | (29,267) | (30) | 40,898 | (185,364) | (173,763) | |||||||||
| Period change | 67,571 | 224 | 6,186 | (51,035) | 22,946 | |||||||||
| Balance, December 31, 2012 | 38,304 | 194 | 47,084 | (236,399) | (150,817) | |||||||||
| Other comprehensive income before reclassifications | (81,575) | 98 | (56,056) | 88,694 | (48,839) | |||||||||
| Amounts reclassified from accumulated OCI to earnings | 4,037 | --- | (9,872) | (8,518) | (14,353) | |||||||||
| Period change | (77,538) | 98 | (65,928) | 80,176 | (63,192) | |||||||||
| Balance, December 31, 2013 | $ | (39,234) | $ | 292 | $ | (18,844) | $ | (156,223) | $ | (214,009) | ||||
| (1) Amount at December 31, 2012 includes $0.2 million of net unrealized gains on securities transferred from the available-for-sale securities portfolio to the held-to-maturity securities portfolio. The net unrealized gains will be recognized in earnings over the remaining life of the security using the effective interest method. | ||||||||||||||
The following table presents the reclassification adjustments out of accumulated OCI included in net income and the impacted line items as listed on the Consolidated Statements of Income for the year ended December 31, 2013:
| Reclassifications out of accumulated OCI | |||||||||||
| Amounts | Location of net gain (loss) | ||||||||||
| Accumulated OCI components | reclassed from accumulated OCI | reclassified from accumulated OCI into earnings | |||||||||
| (dollar amounts in thousands) | 2013 | ||||||||||
| Gains (losses) on debt securities: | |||||||||||
| Amortization of unrealized gains (losses) | $ | 482 | Interest income - held-to-maturity securities - taxable | ||||||||
| Realized gain (loss) on sale of securities | (4,891) | Noninterest income - net gains (losses) on sale of securities | |||||||||
| OTTI recorded | (1,802) | Noninterest income - net gains (losses) on sale of securities | |||||||||
| (6,211) | Total before tax | ||||||||||
| 2,174 | Tax (expense) benefit | ||||||||||
| $ | (4,037) | Net of tax | |||||||||
| Gains (losses) on cash flow hedging relationships: | |||||||||||
| Interest rate contracts | $ | 14,979 | Interest and fee income - loans and leases | ||||||||
| Interest rate contracts | 209 | Interest and fee income - investment securities | |||||||||
| Interest rate contracts | --- | Noninterest expense - other expense | |||||||||
| 15,188 | Total before tax | ||||||||||
| (5,316) | Tax (expense) benefit | ||||||||||
| $ | 9,872 | Net of tax | |||||||||
| Amortization of defined benefit pension and post-retirement items: | |||||||||||
| Actuarial gains (losses) | $ | (22,293) | Noninterest expense - personnel costs | ||||||||
| Prior service costs | 3,454 | Noninterest expense - personnel costs | |||||||||
| Other | (919) | Noninterest expense - personnel costs | |||||||||
| Curtailment | 32,864 | Noninterest expense - personnel costs | |||||||||
| 13,106 | Total before tax | ||||||||||
| (4,588) | Tax (expense) benefit | ||||||||||
| $ | 8,518 | Net of tax | |||||||||