Huntington National Bank 2015 Annual Report Download - page 71

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The overall objective of liquidity risk management is to ensure that we can obtain cost-effective funding to meet current and
future obligations, and can maintain sufficient levels of on-hand liquidity, under both normal business-as-usual and unanticipated
stressed circumstances. The ALCO was appointed by the ROC to oversee liquidity risk management and the establishment of liquidity
risk policies and limits. Contingency funding plans are in place, which measure forecasted sources and uses of funds under various
scenarios in order to prepare for unexpected liquidity shortages. Liquidity risk is reviewed monthly for the Bank and the parent
company, as well as its subsidiaries. In addition, liquidity working groups meet regularly to identify and monitor liquidity positions,
provide policy guidance, review funding strategies, and oversee the adherence to, and maintenance of, the contingency funding plans.
Available-for-sale and other securities portfolio
(This section should be read in conjunction with Note 4 of the Notes to Consolidated Financial Statements.)
Our investment securities portfolio is evaluated under established asset/liability management objectives. Changing market
conditions could affect the profitability of the portfolio, as well as the level of interest rate risk exposure.
The composition and maturity of the portfolio is presented on the following two tables:
Table 20 - Available-for-sale and other securities Portfolio Summary at Fair Value
(dollar amounts in thousands) At December 31,
2015 2014 2013
U.S. Treasury, Federal agency, and other agency securities $ 4,643,073 $ 5,679,696 $ 3,937,713
Other 4,132,368 3,704,974 3,371,040
Total available-for-sale and other securities $ 8,775,441 $ 9,384,670 $ 7,308,753
Duration in years (1) 5.2 3.9 4.2
(1) The average duration assumes a market driven prepayment rate on securities subject to prepayment.
Table 21 - Available-for-sale and other securities Portfolio Composition and Maturity
(dollar amounts in thousands) At December 31, 2015
Amortized
Cost Fair Value Yield (1)
U.S. Treasury, Federal agency, and other agency securities:
U.S. Treasury:
1 year or less $—$— —%
After 1 year through 5 years 5,457 5,472 1.20
After 5 years through 10 years ———
After 10 years ———
Total U.S. Treasury 5,457 5,472 1.20
Federal agencies: mortgage-backed securities:
1 year or less 51,146 51,050 1.76
After 1 year through 5 years 111,655 113,393 2.49
After 5 years through 10 years 254,397 257,765 2.80
After 10 years 4,088,120 4,099,480 2.39
Total Federal agencies: mortgage-backed securities 4,505,318 4,521,688 2.41
Other agencies:
1 year or less 801 805 1.70
After 1 year through 5 years 9,101 9,395 3.00
After 5 years through 10 years 105,174 105,713 2.44
After 10 years ———
Total other agencies 115,076 115,913 2.48
Total U.S. Treasury, Federal agency, and other agency securities 4,625,851 4,643,073 2.41
Municipal securities:
1 year or less 281,644 280,823 2.70