KeyBank 2013 Annual Report Download - page 175

The following table summarizes our securities that were in an unrealized loss position as of December 31, 2013,
and 2012.
Duration of Unrealized Loss Position
Less than 12 Months 12 Months or Longer Total
in millions Fair Value
Gross
Unrealized
Losses (a) Fair Value
Gross
Unrealized
Losses (a) Fair Value
Gross
Unrealized
Losses (a)
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 2— —— 2—
Held-to-maturity:
Collateralized mortgage obligations 3,969 145 — — 3,969 145
Other securities 2— —— 2—
Total temporarily impaired securities $ 9,951 $ 417 $ 157 $ 11 $ 10,108 $ 428
December 31, 2012
Securities available for sale:
Other securities $ 31 — $ 3 — $ 34 —
Total temporarily impaired securities $ 31 — $ 3 — $ 34 —
(a) Gross unrealized losses totaled less than $1 million for the year ended December 31, 2012.
At December 31, 2013, we had $272 million of gross unrealized losses related to 60 fixed-rate collateralized
mortgage obligations that we invested in as part of our overall A/LM strategy. These securities have a weighted-
average maturity of 5.1 years at December 31, 2013. Since these securities have a fixed interest rate, their fair
value is sensitive to movements in market interest rates. We also had $11 million of gross unrealized losses
related to 32 other mortgage-backed securities positions, which have a weighted-average maturity of 3.8 years at
December 31, 2013. These unrealized losses are considered temporary since we expect to collect all contractually
due amounts from these securities. Accordingly, these investments have been 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.
The debt securities identified to have OTTI are written down to their current fair value. For those debt securities that
we intend to sell, or more-likely-than-not will be required to sell, prior to the expected recovery of the amortized
cost, the entire impairment (i.e., the difference between amortized cost and the fair value) is recognized in earnings.
For those debt securities that we do not intend to sell, or more-likely-than-not will not be required to sell, prior to
expected recovery, the credit portion of OTTI is recognized in earnings, while the remaining OTTI is recognized in
equity as a component of AOCI on the balance sheet. As shown in the following table, we did not have any
impairment losses recognized in earnings for the year ended December 31, 2013.
Year ended December 31, 2013
in millions
Balance at December 31, 2012 $4
Impairment recognized in earnings —
Balance at December 31, 2013 $4
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