| 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.
Listed below are the contractual maturities of held-to-maturity securities at September 30, 2018 and December 31, 2017.
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September 30, 2018 |
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December 31, 2017 |
(dollar amounts in millions) |
Amortized
Cost
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Fair
Value
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Amortized
Cost
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Fair
Value
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Federal agencies: |
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Residential CMO: |
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After 5 years through 10 years |
36 |
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35 |
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— |
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— |
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After 10 years |
2,167 |
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2,073 |
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3,714 |
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3,657 |
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Total Residential CMO |
2,203 |
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2,108 |
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3,714 |
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3,657 |
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Residential MBS: |
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After 5 years through 10 years |
— |
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— |
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28 |
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28 |
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After 10 years |
1,624 |
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1,555 |
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1,021 |
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1,016 |
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Total Residential MBS |
1,624 |
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1,555 |
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1,049 |
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1,044 |
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Commercial MBS: |
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After 1 year through 5 years |
— |
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— |
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38 |
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37 |
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After 5 years through 10 years |
130 |
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126 |
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1 |
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1 |
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After 10 years |
4,141 |
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3,968 |
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3,752 |
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3,698 |
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Total Commercial MBS |
4,271 |
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4,094 |
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3,791 |
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3,736 |
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Other agencies: |
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After 1 year through 5 years |
12 |
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12 |
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7 |
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8 |
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After 5 years through 10 years |
204 |
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197 |
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362 |
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360 |
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After 10 years |
146 |
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141 |
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163 |
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161 |
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Total other agencies |
362 |
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350 |
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532 |
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529 |
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Total Federal agencies and other agencies |
8,460 |
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8,107 |
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9,086 |
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8,966 |
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Municipal securities: |
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After 10 years |
5 |
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5 |
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5 |
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5 |
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Total municipal securities |
5 |
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5 |
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5 |
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5 |
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Total held-to-maturity securities |
$ |
8,465 |
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$ |
8,112 |
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$ |
9,091 |
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$ |
8,971 |
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The following table provides amortized cost, gross unrealized gains and losses, and fair value by investment category at September 30, 2018 and December 31, 2017.
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Unrealized |
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(dollar amounts in millions) |
Amortized
Cost
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Gross
Gains
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Gross
Losses
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Fair Value |
September 30, 2018 |
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Federal agencies: |
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Residential CMO |
$ |
2,203 |
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$ |
— |
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$ |
(95 |
) |
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$ |
2,108 |
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Residential MBS |
1,624 |
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— |
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(69 |
) |
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1,555 |
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Commercial MBS |
4,271 |
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— |
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(177 |
) |
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4,094 |
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Other agencies |
362 |
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— |
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(12 |
) |
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350 |
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Total Federal agencies and other agencies |
8,460 |
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— |
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(353 |
) |
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8,107 |
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Municipal securities |
5 |
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— |
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— |
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5 |
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Total held-to-maturity securities |
$ |
8,465 |
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$ |
— |
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$ |
(353 |
) |
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$ |
8,112 |
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Unrealized |
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(dollar amounts in millions) |
Amortized
Cost
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Gross
Gains
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Gross
Losses
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Fair Value |
December 31, 2017 |
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Federal agencies: |
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Residential CMO |
$ |
3,714 |
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$ |
1 |
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$ |
(58 |
) |
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$ |
3,657 |
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Residential MBS |
1,049 |
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2 |
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(7 |
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1,044 |
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Commercial MBS |
3,791 |
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— |
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(55 |
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3,736 |
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Other agencies |
532 |
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1 |
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(4 |
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529 |
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Total Federal agencies and other agencies |
9,086 |
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4 |
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(124 |
) |
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8,966 |
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Municipal securities |
5 |
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— |
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— |
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5 |
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Total held-to-maturity securities |
$ |
9,091 |
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$ |
4 |
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$ |
(124 |
) |
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$ |
8,971 |
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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 September 30, 2018 and December 31, 2017.
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Less than 12 Months |
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Over 12 Months |
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Total |
(dollar amounts in millions) |
Fair
Value |
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Gross Unrealized
Losses |
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Fair
Value |
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Gross Unrealized
Losses |
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Fair
Value |
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Gross Unrealized
Losses |
September 30, 2018 |
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Federal agencies: |
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Residential CMO |
$ |
557 |
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$ |
(21 |
) |
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$ |
1,551 |
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$ |
(74 |
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$ |
2,108 |
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$ |
(95 |
) |
Residential MBS |
807 |
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(33 |
) |
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748 |
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(36 |
) |
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1,555 |
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(69 |
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Commercial MBS |
410 |
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(15 |
) |
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3,683 |
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(162 |
) |
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4,093 |
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(177 |
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Other agencies |
192 |
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(6 |
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138 |
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(6 |
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330 |
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(12 |
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Total Federal agencies and other agencies |
1,966 |
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(75 |
) |
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6,120 |
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(278 |
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8,086 |
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(353 |
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Municipal securities |
— |
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— |
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4 |
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— |
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4 |
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— |
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Total temporarily impaired securities |
$ |
1,966 |
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$ |
(75 |
) |
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$ |
6,124 |
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$ |
(278 |
) |
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$ |
8,090 |
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$ |
(353 |
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Less than 12 Months |
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Over 12 Months |
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Total |
(dollar amounts in millions) |
Fair
Value
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Gross Unrealized
Losses
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Fair
Value
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Gross Unrealized
Losses
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Fair
Value
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Gross Unrealized
Losses
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December 31, 2017 |
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Federal agencies: |
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Residential CMO |
$ |
2,369 |
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$ |
(26 |
) |
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$ |
1,019 |
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$ |
(32 |
) |
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$ |
3,388 |
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$ |
(58 |
) |
Residential MBS |
974 |
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(7 |
) |
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— |
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— |
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974 |
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(7 |
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Commercial MBS |
3,456 |
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(49 |
) |
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253 |
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(6 |
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3,709 |
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(55 |
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Other agencies |
249 |
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(2 |
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139 |
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(2 |
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388 |
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(4 |
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Total Federal agencies and other agencies |
7,048 |
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(84 |
) |
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1,411 |
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(40 |
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8,459 |
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(124 |
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Municipal securities |
— |
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— |
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5 |
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— |
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5 |
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— |
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Total temporarily impaired securities |
$ |
7,048 |
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$ |
(84 |
) |
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$ |
1,416 |
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$ |
(40 |
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$ |
8,464 |
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$ |
(124 |
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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, 2018, Huntington has evaluated held-to-maturity securities with gross unrealized losses for impairment and concluded no OTTI is required.
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