Annual report pursuant to Section 13 and 15(d)

HELD-TO-MATURITY SECURITIES

v3.8.0.1
HELD-TO-MATURITY SECURITIES
12 Months Ended
Dec. 31, 2017
Held-to-maturity Securities [Abstract]  
HELD-TO-MATURITY SECURITIES
HELD-TO-MATURITY SECURITIES
These are debt securities that Huntington has the intent and ability to hold until maturity. The debt securities are carried at amortized cost and adjusted for amortization of premiums and accretion of discounts using the interest method.
During 2017 and 2016, Huntington transferred federal agencies, mortgage-backed securities and other agency securities totaling $1.0 billion and $2.9 billion, respectively from the available-for-sale securities portfolio to the held-to-maturity securities portfolio. At the time of the transfer, $14 million of unrealized net losses and $58 million of unrealized net gains were recognized in OCI, respectively. The amounts in OCI will be recognized in earnings over the remaining life of the securities as an offset to the adjustment of yield in a manner consistent with the amortization of the premium on the same transferred securities, resulting in an immaterial impact on net income.
Listed below are the contractual maturities of held-to-maturity securities at December 31, 2017 and December 31, 2016:
 
December 31, 2017
 
December 31, 2016
(dollar amounts in millions)
Amortized
Cost
 
Fair
Value
 
Amortized
Cost
 
Fair
Value
Federal agencies:
 
 
 
 
 
 
 
Residential CMO:
 
 
 
 
 
 
 
1 year or less
$

 
$

 
$

 
$

After 1 year through 5 years

 

 

 

After 5 years through 10 years

 

 

 

After 10 years
3,714

 
3,657

 
4,189

 
4,163

Total Residential CMO
3,714

 
3,657

 
4,189

 
4,163

Residential MBS:
 
 
 
 
 
 
 
1 year or less
$

 
$

 
$

 
$

After 1 year through 5 years

 

 

 

After 5 years through 10 years
28

 
28

 
15

 
15

After 10 years
1,021

 
1,016

 
83

 
86

Total Residential MBS
1,049

 
1,044

 
98

 
101

Commercial MBS:
 
 
 
 
 
 
 
1 year or less
$

 
$

 
$

 
$

After 1 year through 5 years
38

 
37

 

 

After 5 years through 10 years
1

 
1

 
26

 
25

After 10 years
3,752

 
3,698

 
2,885

 
2,891

Total Commercial MBS
3,791

 
3,736

 
2,911

 
2,916

Other agencies:
 
 
 
 
 
 
 
1 year or less

 

 

 

After 1 year through 5 years
7

 
8

 

 

After 5 years through 10 years
362

 
360

 
399

 
399

After 10 years
163

 
161

 
204

 
202

Total other agencies
532

 
529

 
603

 
601

Total Federal agencies and other agencies
9,086

 
8,966

 
7,801

 
7,781

Municipal securities:
 
 
 
 
 
 
 
1 year or less

 

 

 

After 1 year through 5 years

 

 

 

After 5 years through 10 years

 

 

 

After 10 years
5

 
5

 
6

 
6

Total Municipal securities
5

 
5

 
6

 
6

Total held-to-maturity securities
$
9,091

 
$
8,971

 
$
7,807

 
$
7,787


The following table provides amortized cost, gross unrealized gains and losses, and fair value by investment category at December 31, 2017 and 2016: 
 
 
 
Unrealized
 
 
(dollar amounts in millions)
Amortized
Cost
 
Gross
Gains
 
Gross
Losses
 
Fair Value
December 31, 2017
 
 
 
 
 
 
 
Federal agencies:
 
 
 
 
 
 
 
Residential CMO
$
3,714

 
$
1

 
$
(58
)
 
$
3,657

Residential MBS
1,049

 
2

 
(7
)
 
1,044

Commercial MBS
3,791

 

 
(55
)
 
3,736

Other agencies
532

 
1

 
(4
)
 
529

Total Federal agencies and other agencies
9,086

 
4

 
(124
)
 
8,966

Municipal securities
5

 

 

 
5

Total held-to-maturity securities
$
9,091

 
$
4

 
$
(124
)
 
$
8,971

 
 
 
Unrealized
 
 
(dollar amounts in millions)
Amortized
Cost
 
Gross
Gains
 
Gross
Losses
 
Fair Value
December 31, 2016
 
 
 
 
 
 
 
Federal agencies:
 
 
 
 
 
 
 
Residential CMO
$
4,189

 
$
7

 
$
(33
)
 
$
4,163

Residential MBS
98

 
3

 

 
101

Commercial MBS
2,911

 
10

 
(5
)
 
2,916

Other agencies
603

 
2

 
(4
)
 
601

Total Federal agencies and other agencies
7,801

 
22

 
(42
)
 
7,781

Municipal securities
6

 

 

 
6

Total held-to-maturity securities
$
7,807

 
$
22

 
$
(42
)
 
$
7,787

The following tables provide detail on HTM securities with unrealized losses aggregated by investment category and the length of time the individual securities have been in a continuous loss position at December 31, 2017 and 2016:
 
Less than 12 Months
 
Over 12 Months
 
Total
(dollar amounts in millions)
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
Federal agencies:
 
 
 
 
 
 
 
 
 
 
 
Residential CMO
$
2,369

 
$
(26
)
 
$
1,019

 
$
(32
)
 
$
3,388

 
$
(58
)
Residential MBS
974

 
(7
)
 

 

 
974

 
(7
)
Commercial MBS
3,456

 
(49
)
 
253

 
(6
)
 
3,709

 
(55
)
Other agencies
249

 
(2
)
 
139

 
(2
)
 
388

 
(4
)
Total Federal agencies and other agencies
7,048

 
(84
)
 
1,411

 
(40
)
 
8,459

 
(124
)
Municipal securities

 

 
5

 

 
5

 

Total temporarily impaired securities
$
7,048

 
$
(84
)
 
$
1,416

 
$
(40
)
 
$
8,464

 
$
(124
)
 
Less than 12 Months
 
Over 12 Months
 
Total
(dollar amounts in millions)
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
Federal agencies:
 
 
 
 
 
 
 
 
 
 
 
Residential CMO
$
2,483

 
$
(26
)
 
$
186

 
$
(7
)
 
$
2,669

 
$
(33
)
Residential MBS
20

 

 

 

 
20

 

Commercial MBS
352

 
(5
)
 

 

 
352

 
(5
)
Other agencies
414

 
(4
)
 

 

 
414

 
(4
)
Total Federal agencies and other agencies
3,269

 
(35
)
 
186

 
(7
)
 
3,455

 
(42
)
Municipal securities
6

 

 

 

 
6

 

Total temporarily impaired securities
$
3,275

 
$
(35
)
 
$
186

 
$
(7
)
 
$
3,461

 
$
(42
)

Security Impairment
Huntington evaluates the held-to-maturity securities portfolio on a quarterly basis for impairment. Impairment would exist when the present value of the expected cash flows is not sufficient to recover the entire amortized cost basis at the balance sheet date. Under these circumstances, any impairment would be recognized in earnings. As of December 31, 2017 and 2016, the Company evaluated held-to-maturity securities with unrealized losses for impairment and concluded no OTTI is required.