Quarterly report pursuant to Section 13 or 15(d)

Held to Maturity Securities

v2.4.0.8
Held to Maturity Securities
3 Months Ended
Sep. 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 September 30, 2014 and December 31, 2013:

September 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 23,674 24,901 22,549
Over 10 years 3,249,587 3,223,650 3,574,156 3,506,018
Total Federal agencies: mortgage-backed securities 3,274,488 3,247,324 3,599,057 3,528,567
Other agencies:
Under 1 year --- --- --- ---
1-5 years --- --- --- ---
6-10 years 54,766 55,186 38,588 39,075
Over 10 years 158,851 156,696 189,999 185,097
Total other agencies 213,617 211,882 228,587 224,172
Total U.S. Government backed agencies 3,488,105 3,459,206 3,827,644 3,752,739
Municipal securities:
Under 1 year --- --- --- ---
1-5 years --- --- --- ---
6-10 years --- --- --- ---
Over 10 years 8,388 7,850 9,023 8,159
Total municipal securities 8,388 7,850 9,023 8,159
Total held-to-maturity securities $ 3,496,493 $ 3,467,056 $ 3,836,667 $ 3,760,898

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

Unrealized
Amortized Gross Gross Fair
(dollar amounts in thousands) Cost Gains Losses Value
September 30, 2014
Federal Agencies:
Mortgage-backed securities $ 3,274,488 $ 14,648 $ (41,812) $ 3,247,324
Other agencies 213,617 755 (2,490) 211,882
Total U.S. Government
backed securities 3,488,105 15,403 (44,302) 3,459,206
Municipal securities 8,388 --- (538) 7,850
Total held-to-maturity securities $ 3,496,493 $ 15,403 $ (44,840) $ 3,467,056
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

The following tables provide detail on held-to-maturity securities with unrealized losses aggregated by investment category and the length of time the individual securities have been in a continuous loss position, at September 30, 2014 and December 31, 2013:

Less than 12 Months Over 12 Months Total
Fair Unrealized Fair Unrealized Fair Unrealized
(dollar amounts in thousands ) Value Losses Value Losses Value Losses
September 30, 2014
Federal Agencies:
Mortgage-backed securities $ 1,504,885 $ (16,953) $ 668,968 $ (24,859) $ 2,173,853 $ (41,812)
Other agencies 37,380 (146) 71,374 (2,344) 108,754 (2,490)
Total U.S. Government backed securities 1,542,265 (17,099) 740,342 (27,203) 2,282,607 (44,302)
Municipal securities 7,849 (538) --- --- 7,849 (538)
Total temporarily impaired securities $ 1,550,114 $ (17,637) $ 740,342 $ (27,203) $ 2,290,456 $ (44,840)
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 September 30, 2014, Management has evaluated held-to-maturity securities with unrealized losses for impairment and concluded no OTTI is required.