Huntington National Bank 2014 Annual Report Download - page 67

61
Asset-backed securities:
Under 1 year --- --- ---
1-5 years 228,852 229,364 1.90
6-10 years 144,163 144,193 2.20
Over 10 years 641,984 582,441 2.15
Total asset-backed securities 1,014,999 955,998 2.10
Corporate debt securities:
Under 1 year 18,767 18,953 3.28
1-5 years 314,773 323,503 3.30
6-10 years 145,611 143,720 2.85
Over 10 years --- --- ---
Total corporate debt securities 479,151 486,176 3.16
Other:
Under 1 year 250 250 1.48
1-5 years 3,150 3,066 2.50
6-10 years --- --- NA
Over 10 years --- --- NA
N
onmarketable equity securities (2) 331,559 331,559 5.05
Marketable equity securities (3) 16,687 17,430 NA
Total other 351,646 352,305 4.79
Total available-for-sale and other securities $9,359,886 $9,384,670 2.67 %
(1) Weighted average yields were calculated using amortized cost on a fully-taxable equivalent basis, assuming a 35% tax rate.
(2) Consists of FHLB and FRB restricted stock holding carried at par.
(3) Consists of certain mutual fund and equity security holdings.
Investment securities portfolio
The expected weighted average maturities of our AFS and HTM portfolios are significantly shorter than their contractual
maturities as reflected in Note 4 and Note 5 of the Notes to Consolidated Financial Statements. Particularly regarding the MBS and
ABS, prepayments of principal and interest that historically occur in advance of scheduled maturities will shorten the expected life of
these portfolios. The expected weighted average maturities, which take into account expected prepayments of principal and interest
under existing interest rate conditions, are shown in the following table:
Table 24 - Expected Life of Investment Securities
December 31, 2014
Available-for-Sale & Other Held-to-Maturity
Securities Securities
Amortized Fair Amortized Fair
(dollar amounts in thousands) Cost Value Cost Value
Under 1 year $ 569,054 $ 565,853 $ --- $ ---
1 - 5 years 4,882,061 4,938,893 2,200,359 2,201,471
6 - 10 years 3,039,362 3,031,093 1,171,565 1,173,650
Over 10 years 521,163 499,841 7,981 7,594
Other securities 348,246 348,990 --- ---
Total $ 9,359,886 $ 9,384,670 $ 3,379,905 $ 3,382,715
Bank Liquidity and Sources of Funding
Our primary sources of funding for the Bank are retail and commercial core deposits. As of December 31, 2014, these core
deposits funded 73% of total assets (102% of total loans). At December 31, 2014, total core deposits represented 94% of total
deposits, a slight decrease from December 31, 2013, when core deposits represented 95% of total deposits.
Core deposits may increase our need for liquidity as certificates of deposit mature or are withdrawn before maturity and as
nonmaturity deposits, such as checking and savings account balances, are withdrawn. To the extent we are unable to obtain sufficient
liquidity through core deposits, we may meet our liquidity needs through other sources, asset securitization, or sale. Other sources
include non-core deposits, FHLB advances, and other wholesale debt instruments.