Quarterly report pursuant to Section 13 or 15(d)

Held to Maturity Securities

v2.4.0.8
Held to Maturity Securities
 3 Months Ended
Jun. 30, 2014
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.

 

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 June 30, 2014 and December 31, 2013:

        June 30, 2014     December 31, 2013
        Amortized     Fair     Amortized     Fair
(dollar amounts in thousands)   Cost     Value     Cost     Value
  Federal agencies: mortgage-backed securities:                      
    Under 1 year $ ---   $ ---   $ ---   $ ---
    1-5 years   ---     ---     ---     ---
    6-10 years   24,901     23,780     24,901     22,549
    Over 10 years   3,368,697     3,360,926     3,574,156     3,506,018
  Total Federal agencies: mortgage-backed securities 3,393,598     3,384,706     3,599,057     3,528,567
  Other agencies:                      
    Under 1 year   ---     ---     ---     ---
    1-5 years   ---     ---     ---     ---
    6-10 years   56,674     57,331     38,588     39,075
    Over 10 years   163,068     160,911     189,999     185,097
  Total other agencies   219,742     218,242     228,587     224,172
Total U.S. Government backed agencies   3,613,340     3,602,948     3,827,644     3,752,739
Municipal securities:                      
  Under 1 year   ---     ---     ---     ---
  1-5 years   ---     ---     ---     ---
  6-10 years ---     ---     ---     ---
  Over 10 years   8,655     8,313     9,023     8,159
Total municipal securities   8,655     8,313     9,023     8,159
Total held-to-maturity securities $ 3,621,995   $ 3,611,261   $ 3,836,667   $ 3,760,898
                           

The following table provides amortized cost, gross unrealized gains and losses, and fair value by investment category at June 30, 2014 and December 31, 2013:

            Unrealized      
      Amortized     Gross     Gross     Fair
(dollar amounts in thousands)   Cost     Gains     Losses     Value
June 30, 2014                      
Federal Agencies:                      
  Mortgage-backed securities $ 3,393,598   $ 22,638   $ (31,530)   $ 3,384,706
  Other agencies   219,742     928     (2,428)     218,242
Total U.S. Government                      
  backed securities   3,613,340     23,566     (33,958)     3,602,948
Municipal securities   8,655     ---     (342)     8,313
Total held-to-maturity securities $ 3,621,995   $ 23,566   $ (34,300)   $ 3,611,261
                         
            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

      Less than 12 Months     Over 12 Months     Total
      Fair     Unrealized     Fair     Unrealized     Fair     Unrealized
(dollar amounts in thousands )   Value     Losses     Value     Losses     Value     Losses
June 30, 2014                                  
Federal Agencies:                                  
  Mortgage-backed securities $ 1,172,741   $ (12,372)   $ 574,627   $ (19,158)   $ 1,747,368   $ (31,530)
  Other agencies   18,849     (49)     73,545     (2,379)     92,394     (2,428)
Total U.S. Government backed securities   1,191,590     (12,421)     648,172     (21,537)     1,839,762     (33,958)
                                     
Municipal securities   8,313     (342)     ---     ---     8,313     (342)
Total temporarily impaired securities $ 1,199,903   $ (12,763)   $ 648,172   $ (21,537)   $ 1,848,075   $ (34,300)
                                     
      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)

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 June 30, 2014, Management has evaluated held-to-maturity securities with unrealized losses for impairment and concluded no OTTI is required.