| 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, 2013 and December 31, 2012:
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September 30, 2013 |
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December 31, 2012 |
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Amortized |
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Fair |
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Amortized |
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|
Fair |
| (dollar amounts in thousands) |
|
Cost |
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Value |
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|
Cost |
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Value |
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Federal agencies: mortgage-backed securities: |
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Under 1 year |
$ |
--- |
|
$ |
--- |
|
$ |
--- |
|
$ |
--- |
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1-5 years |
|
--- |
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|
--- |
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|
--- |
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|
--- |
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6-10 years |
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24,901 |
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22,764 |
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|
24,901 |
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|
24,739 |
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Over 10 years |
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2,096,322 |
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|
2,083,669 |
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|
1,624,483 |
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|
1,672,702 |
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Total Federal agencies: mortgage-backed securities |
2,121,223 |
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|
2,106,433 |
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|
1,649,384 |
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|
1,697,441 |
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Other agencies: |
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|
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Under 1 year |
|
--- |
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|
--- |
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|
--- |
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|
--- |
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1-5 years |
|
--- |
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|
--- |
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|
--- |
|
|
--- |
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6-10 years |
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39,346 |
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39,206 |
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|
15,108 |
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|
15,338 |
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Over 10 years |
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66,222 |
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|
62,749 |
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|
69,399 |
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|
71,341 |
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Total other agencies |
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105,568 |
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|
101,955 |
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|
84,507 |
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|
86,679 |
| Total U.S. Government backed agencies |
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2,226,791 |
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2,208,388 |
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|
1,733,891 |
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|
1,784,120 |
| Municipal securities: |
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Under 1 year |
|
--- |
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|
--- |
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|
--- |
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|
--- |
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1-5 years |
|
--- |
|
|
--- |
|
|
--- |
|
|
--- |
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6-10 years |
--- |
|
|
--- |
|
|
--- |
|
|
--- |
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Over 10 years |
|
9,330 |
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|
8,971 |
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|
9,985 |
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|
9,985 |
| Total municipal securities |
|
9,330 |
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|
8,971 |
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|
9,985 |
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|
9,985 |
| Total held-to-maturity securities |
$ |
2,236,121 |
|
$ |
2,217,359 |
|
$ |
1,743,876 |
|
$ |
1,794,105 |
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The following table provides amortized cost, gross unrealized gains and losses, and fair value by investment category at September 30, 2013 and December 31, 2012:
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Unrealized |
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Amortized |
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Gross |
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Gross |
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Fair |
| (dollar amounts in thousands) |
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Cost |
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Gains |
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Losses |
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Value |
| September 30, 2013 |
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| Federal Agencies: |
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|
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|
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Mortgage-backed securities |
$ |
2,121,223 |
|
$ |
13,534 |
|
$ |
(28,324) |
|
$ |
2,106,433 |
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Other agencies |
|
105,568 |
|
|
--- |
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|
(3,613) |
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|
101,955 |
| Total U.S. Government |
|
|
|
|
|
|
|
|
|
|
|
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backed securities |
|
2,226,791 |
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|
13,534 |
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|
(31,937) |
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|
2,208,388 |
| Municipal securities |
|
9,330 |
|
|
--- |
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|
(359) |
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|
8,971 |
| Total held-to-maturity securities |
$ |
2,236,121 |
|
$ |
13,534 |
|
$ |
(32,296) |
|
$ |
2,217,359 |
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|
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|
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Unrealized |
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Amortized |
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Gross |
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Gross |
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|
Fair |
| (dollar amounts in thousands) |
|
Cost |
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Gains |
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Losses |
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Value |
| December 31, 2012 |
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| Federal Agencies: |
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|
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|
|
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|
|
|
|
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Mortgage-backed securities |
$ |
1,649,384 |
|
$ |
48,219 |
|
$ |
(162) |
|
$ |
1,697,441 |
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Other agencies |
|
84,507 |
|
|
2,172 |
|
|
--- |
|
|
86,679 |
| Total U.S. Government |
|
|
|
|
|
|
|
|
|
|
|
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backed securities |
|
1,733,891 |
|
|
50,391 |
|
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(162) |
|
|
1,784,120 |
| Municipal securities |
|
9,985 |
|
|
--- |
|
|
--- |
|
|
9,985 |
| Total held-to-maturity securities |
$ |
1,743,876 |
|
$ |
50,391 |
|
$ |
(162) |
|
$ |
1,794,105 |
All held-to-maturity securities with unrealized losses aggregated by investment category have been in continuous loss positions for less than 12 months.
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, 2013, Management has evaluated held-to-maturity securities with unrealized losses for impairment and concluded no OTTI is required.
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