Quarterly report pursuant to Section 13 or 15(d)

HELD-TO-MATURITY SECURITIES

v3.5.0.2
HELD-TO-MATURITY SECURITIES
9 Months Ended
Sep. 30, 2016
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 2015, Huntington transferred $3.0 billion 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, $6 million 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.
Listed below are the contractual maturities (1 year or less, 1-5 years, 6-10 years, and over 10 years) of held-to-maturity securities at September 30, 2016 and December 31, 2015:
 
September 30, 2016
 
December 31, 2015
(dollar amounts in thousands)
Amortized
Cost
 
Fair
Value
 
Amortized
Cost
 
Fair
Value
Federal agencies: mortgage-backed securities:
 
 
 
 
 
 
 
1 year or less
$

 
$

 
$

 
$

After 1 year through 5 years

 

 

 

After 5 years through 10 years
42,431

 
43,449

 
25,909

 
25,227

After 10 years
4,677,662

 
4,752,132

 
5,506,592

 
5,484,407

Total Federal agencies: mortgage-backed securities
4,720,093

 
4,795,581

 
5,532,501

 
5,509,634

Other agencies:
 
 
 
 
 
 
 
1 year or less

 

 

 

After 1 year through 5 years

 

 

 

After 5 years through 10 years
311,223

 
317,298

 
283,960

 
284,907

After 10 years
263,697

 
269,841

 
336,092

 
334,004

Total other agencies
574,920

 
587,139

 
620,052

 
618,911

Total U.S. Government backed agencies
5,295,013

 
5,382,720

 
6,152,553

 
6,128,545

Municipal securities:
 
 
 
 
 
 
 
1 year or less

 

 

 

After 1 year through 5 years

 

 

 

After 5 years through 10 years

 

 

 

After 10 years
6,374

 
6,373

 
7,037

 
6,913

Total municipal securities
6,374

 
6,373

 
7,037

 
6,913

Total held-to-maturity securities
$
5,301,387

 
$
5,389,093

 
$
6,159,590

 
$
6,135,458


The following table provides amortized cost, gross unrealized gains and losses, and fair value by investment category at September 30, 2016 and December 31, 2015:
 
 
 
Unrealized
 
 
(dollar amounts in thousands)
Amortized
Cost
 
Gross
Gains
 
Gross
Losses
 
Fair Value
September 30, 2016
 
 
 
 
 
 
 
Federal agencies:
 
 
 
 
 
 
 
Mortgage-backed securities
$
4,720,093

 
$
78,826

 
$
(3,338
)
 
$
4,795,581

Other agencies
574,920

 
12,219

 

 
587,139

Total U.S. Government backed agencies
5,295,013

 
91,045

 
(3,338
)
 
5,382,720

Municipal securities
6,374

 

 
(1
)
 
6,373

Total held-to-maturity securities
$
5,301,387

 
$
91,045

 
$
(3,339
)
 
$
5,389,093

 
 
 
Unrealized
 
 
(dollar amounts in thousands)
Amortized
Cost
 
Gross
Gains
 
Gross
Losses
 
Fair Value
December 31, 2015
 
 
 
 
 
 
 
Federal agencies:
 
 
 
 
 
 
 
Mortgage-backed securities
$
5,532,501

 
$
14,637

 
$
(37,504
)
 
$
5,509,634

Other agencies
620,052

 
1,645

 
(2,786
)
 
618,911

Total U.S. Government backed agencies
6,152,553

 
16,282

 
(40,290
)
 
6,128,545

Municipal securities
7,037

 

 
(124
)
 
6,913

Total held-to-maturity securities
$
6,159,590

 
$
16,282

 
$
(40,414
)
 
$
6,135,458


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, 2016 and December 31, 2015:
 
Less than 12 Months
 
Over 12 Months
 
Total
(dollar amounts in thousands)
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
September 30, 2016
 
 
 
 
 
 
 
 
 
 
 
Federal agencies:
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities
$
273,593

 
$
(1,862
)
 
$
150,218

 
$
(1,476
)
 
$
423,811

 
$
(3,338
)
Other agencies

 

 

 

 

 

Total U.S. Government backed securities
273,593

 
(1,862
)
 
150,218

 
(1,476
)
 
423,811

 
(3,338
)
Municipal securities
6,372

 
(1
)
 

 

 
6,372

 
(1
)
Total temporarily impaired securities
$
279,965

 
$
(1,863
)
 
$
150,218

 
$
(1,476
)
 
$
430,183

 
$
(3,339
)
 
Less than 12 Months
 
Over 12 Months
 
Total
(dollar amounts in thousands)
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
Federal agencies:
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities
$
3,692,890

 
$
(25,418
)
 
$
519,872

 
$
(12,086
)
 
$
4,212,762

 
$
(37,504
)
Other agencies
425,410

 
(2,689
)
 
6,647

 
(97
)
 
432,057

 
(2,786
)
Total U.S. Government backed securities
4,118,300

 
(28,107
)
 
526,519

 
(12,183
)
 
4,644,819

 
(40,290
)
Municipal securities

 

 
6,913

 
(124
)
 
6,913

 
(124
)
Total temporarily impaired securities
$
4,118,300

 
$
(28,107
)
 
$
533,432

 
$
(12,307
)
 
$
4,651,732

 
$
(40,414
)

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, 2016, Management has evaluated held-to-maturity securities with unrealized losses for impairment and concluded no OTTI is required.