Annual report pursuant to Section 13 and 15(d)

Held to Maturity Securities

v2.4.0.8
Held to Maturity Securities
 12 Months Ended
Dec. 31, 2013
Held to Maturity Securities [Abstract]  
HELD-TO-MATURITY SECURITIES

5. 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 2013 and 2012, Huntington transferred $292.2 million and $278.7 million, respectively of federal agencies, mortgage-backed securities and other agency securities from the available-for-sale securities portfolio to the held-to-maturity securities portfolio. At the time of the transfer, $0.0 million and $0.1 million, respectively of unrealized net gains were recognized in OCI. 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.

 

Additionally, during 2013 and 2012, Huntington purchased additional federal agencies, mortgage-backed securities and municipal securities, which were classified directly into the held-to-maturity portfolio.

 

Listed below are the contractual maturities (under 1 year, 1-5 years, 6-10 years, and over 10 years) of held-to-maturity securities at December 31, 2013 and 2012:

 

        December 31, 2013     December 31, 2012
        Amortized     Fair     Amortized      
(dollar amounts in thousands)   Cost     Value     Cost     Fair Value
  Federal agencies: mortgage-backed securities:                      
    Under 1 year $ ---   $ ---   $ ---   $ ---
    1-5 years   ---     ---     ---     ---
    6-10 years   24,901     22,549     24,901     24,739
    Over 10 years   3,574,156     3,506,018     1,624,483     1,672,702
  Total Federal agencies: mortgage-backed securities 3,599,057     3,528,567     1,649,384     1,697,441
  Other agencies:                      
    Under 1 year   ---     ---     ---     ---
    1-5 years   ---     ---     ---     ---
    6-10 years   38,588     39,075     15,108     15,338
    Over 10 years   189,999     185,097     69,399     71,341
  Total other agencies   228,587     224,172     84,507     86,679
Total U.S. Government backed agencies   3,827,644     3,752,739     1,733,891     1,784,120
Municipal securities:                      
  Under 1 year   ---     ---     ---     ---
  1-5 years   ---     ---     ---     ---
  6-10 years ---     ---     ---     ---
  Over 10 years   9,023     8,159     9,985     9,985
Total municipal securities   9,023     8,159     9,985     9,985
Total held-to-maturity securities $ 3,836,667   $ 3,760,898   $ 1,743,876   $ 1,794,105
                           

The following table provides amortized cost, gross unrealized gains and losses, and fair value by investment category at December 31, 2013 and 2012:

            Unrealized      
      Amortized     Gross     Gross     Fair
(dollar amounts in thousands)   Cost     Gains     Losses     Value
December 31, 2013                      
Federal Agencies:                      
  Mortgage-backed securities $ 3,599,057   $ 5,573   $ (76,063)   $ 3,528,567
  Other agencies   228,587     776     (5,191)     224,172
Total U.S. Government                      
  backed securities   3,827,644     6,349     (81,254)     3,752,739
Municipal securities   9,023     ---     (864)     8,159
Total held-to-maturity securities $ 3,836,667   $ 6,349   $ (82,118)   $ 3,760,898
                         
            Unrealized      
      Amortized     Gross     Gross     Fair
(dollar amounts in thousands)   Cost     Gains     Losses     Value
December 31, 2012                      
Federal Agencies:                      
  Mortgage-backed securities $ 1,649,384   $ 48,219   $ (162)   $ 1,697,441
  Other agencies   84,507     2,172     ---     86,679
Total U.S. Government                      
  backed securities   1,733,891     50,391     (162)     1,784,120
Municipal securities   9,985     ---     ---     9,985
Total held-to-maturity securities $ 1,743,876   $ 50,391   $ (162)   $ 1,794,105

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, 2013 and 2012:

      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, 2013                                  
Federal Agencies:                                  
  Mortgage-backed securities $ 2,849,198   $ (73,711)   $ 22,548   $ (2,352)   $ 2,871,746   $ (76,063)
  Other agencies   144,417     (5,191)     ---     ---     144,417     (5,191)
Total U.S. Government backed securities   2,993,615     (78,902)     22,548     (2,352)     3,016,163     (81,254)
                                     
Municipal securities   8,159     (864)     ---     ---     8,159     (864)
Total temporarily impaired securities $ 3,001,774   $ (79,766)   $ 22,548   $ (2,352)   $ 3,024,322   $ (82,118)
                                     
      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, 2012                                  
Federal Agencies:                                  
  Mortgage-backed securities $ 24,739   $ (162)   $ ---   $ ---   $ 24,739   $ (162)
Total U.S. Government backed securities   24,739     (162)     ---     ---     24,739     (162)
                                     
Total temporarily impaired securities $ 24,739   $ (162)   $ ---   $ ---   $ 24,739   $ (162)

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, 2013, Management has evaluated held-to-maturity securities with unrealized losses for impairment and concluded no OTTI is required.