KeyBank 2014 Annual Report Download - page 174

The following table summarizes our securities that were in an unrealized loss position as of December 31, 2014,
and December 31, 2013.
Duration of Unrealized Loss Position
Less than 12 Months 12 Months or Longer Total
in millions Fair Value
Gross
Unrealized
Losses Fair Value
Gross
Unrealized
Losses Fair Value
Gross
Unrealized
Losses
December 31, 2014
Securities available for sale:
Collateralized mortgage obligations $ 3,019 $ 52 $ 2,932 $ 84 $ 5,951 $ 136
Other mortgage-backed securities —— 78 1 78 1
Other securities (a) 4— 2 — 6 —
Held-to-maturity:
Collateralized mortgage obligations 1,005 11 1,994 46 2,999 57
Total temporarily impaired securities $ 4,028 $ 63 $ 5,006 $ 131 $ 9,034 $ 194
December 31, 2013
Securities available for sale:
Collateralized mortgage obligations $ 5,122 $ 261 $ 157 $ 11 $ 5,279 $ 272
Other mortgage-backed securities 856 11 — — 856 11
Other securities (a) 2— — — 2 —
Held-to-maturity:
Collateralized mortgage obligations 3,969 145 — — 3,969 145
Other securities (b) 2— — — 2 —
Total temporarily impaired securities $ 9,951 $ 417 $ 157 $ 11 $ 10,108 $ 428
(a) Gross unrealized losses totaled less than $1 million for other securities available sale for the years ended December 31, 2014, and
December 31, 2013.
(b) Gross unrealized losses totaled less than $1 million for other securities held-to-maturity for the year ended December 31, 2013.
At December 31, 2014, we had $136 million of gross unrealized losses related to 67 fixed-rate CMOs that we
invested in as part of our overall A/LM strategy. These securities had a weighted-average maturity of 4.6 years at
December 31, 2014. Since these securities have a fixed interest rate, their fair value is sensitive to movements in
market interest rates. We also had $1 million of gross unrealized losses related to 14 other mortgage-backed
securities positions, which had a weighted-average maturity of 4.6 years at December 31, 2014. These unrealized
losses are considered temporary since we expect to collect all contractually due amounts from these securities.
Accordingly, these investments were reduced to their fair value through OCI, not earnings.
We regularly assess our securities portfolio for OTTI. The assessments are based on the nature of the securities,
the underlying collateral, the financial condition of the issuer, the extent and duration of the loss, our intent
related to the individual securities, and the likelihood that we will have to sell securities prior to expected
recovery.
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