Huntington National Bank 2014 Annual Report Download - page 144

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(1) Effective December 31, 2013 approximately $600.4 million of direct purchase municipal instruments were reclassified from C&I
loans to available-for-sale securities.
The following tables provide detail on investment securities with unrealized losses aggregated by investment category and the
length of time the individual securities have been in a continuous loss position at December 31, 2014 and 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
December 31, 2014
Federal Agencies:
Mortgage-backed securities $ 501,858 $ (1,909) $ 527,280 $ (13,195) $ 1,029,138 $ (15,104)
Other agencies 159,708 (1,020) 1,281 (23) 160,989 (1,043)
Total Federal agency securities 661,566 (2,929) 528,561 (13,218) 1,190,127 (16,147)
Municipal securities 568,619 (9,127) 96,426 (1,013) 665,045 (10,140)
Private label CMO --- --- 22,650 (2,920) 22,650 (2,920)
Asset-backed securities 157,613 (641) 325,691 (60,421) 483,304 (61,062)
Corporate debt securities 49,562 (252) 88,398 (2,165) 137,960 (2,417)
Other securities --- --- 1,416 (84) 1,416 (84)
Total temporarily impaired securities $ 1,437,360 $ (12,949) $ 1,063,142 $ (79,821) $ 2,500,502 $ (92,770)
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 $ 1,628,454 $ (37,174) $ 12,682 $ (1,368) $ 1,641,136 $ (38,542)
Other agencies 2,069 (94) --- --- 2,069 (94)
Total Federal agency securities 1,630,523 (37,268) 12,682 (1,368) 1,643,205 (38,636)
Municipal securities 551,114 (12,395) 7,531 (701) 558,645 (13,096)
Private label CMO --- --- 22,639 (3,322) 22,639 (3,322)
Asset-backed securities 391,665 (9,720) 107,419 (78,295) 499,084 (88,015)
Corporate debt securities 146,308 (7,729) 26,155 (1,765) 172,463 (9,494)
Other securities 3,078 (72) 2,530 (61) 5,608 (133)
Total temporarily impaired securities $ 2,722,688 $ (67,184) $ 178,956 $ (85,512) $ 2,901,644 $ (152,696)
At December 31, 2014, the carrying value of investment securities pledged to secure public and trust deposits, trading account
liabilities, U.S. Treasury demand notes, and security repurchase agreements totaled $3.6 billion. There were no securities of a single
issuer, which are not governmental or government-sponsored, that exceeded 10% of shareholders’ equity at December 31, 2014.
The following table is a summary of realized securities gains and losses for the years ended December 31, 2014, 2013, and 2012:
(dollar amounts in thousands) 2014 2013 2012
Gross gains on sales of securities $17,729
$ 2,932 $8,612
Gross (losses) on sales of securities (175) (712) (2,224)
N
et gain (loss) on sales of securities $17,554 $ 2,220 $6,388
Collateralized Debt Obligations and Private-Label CMO Securities
Our highest risk segments of our investment portfolio are the CDO and 2003-2006 vintage private-label CMO portfolios. Of the
$41.9 million private-label CMO securities reported at fair value at December 31, 2014, approximately $20.3 million are rated below
investment grade. The CDOs are in the asset-backed securities portfolio. These segments are in run-off, and we have not purchased
these types of securities since 2008. The performance of the underlying securities in each of these segments reflects the deterioration
of CDO issuers and 2003 to 2006 non-agency mortgages. Each of these securities in these two segments is subjected to a rigorous
review of its projected cash flows. These reviews are supported with analysis from independent third parties.