Huntington National Bank 2012 Annual Report Download - page 153

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The contractual terms and / or cash flows of the investments do not permit the issuer to settle the securities at a price less than the
amortized cost. Huntington does not intend to sell, nor does it believe it will be required to sell these securities until the fair value is
recovered, which may be maturity and; therefore, does not consider them to be other-than-temporarily impaired at December 31, 2012.
As of December 31, 2012, Management has evaluated all other investment securities with unrealized losses and all nonmarketable
securities for impairment and concluded no additional OTTI is required.
5. HELD-TO-MATURITY SECURITIES
These are debt securities that Huntington has the intent and ability to hold until maturity. The debt securities are carried at
amortized cost and adjusted for amortization of premiums and accretion of discounts using the interest method.
During 2012 and 2011, Huntington transferred $278.7 million and $469.1 million, respectively of federal agencies, mortgage-
backed securities and other agency securities from the available-for-sale securities portfolio to the held-to-maturity securities portfolio.
At the time of the transfer, $0.1 million and $0.5 million, respectively of unrealized net gains were recognized in OCI. The amounts
in OCI will be recognized in earnings over the remaining life of the securities as an offset to the adjustment of yield in a manner
consistent with the amortization of the premium on the same transferred securities, resulting in an immaterial impact on net income.
Additionally, during 2012 and 2011, Huntington purchased additional federal agencies, mortgage-backed securities and municipal
securities, which were classified directly into the held-to-maturity portfolio.
Listed below are the contractual maturities (under 1 year, 1-5 years, 6-10 years, and over 10 years) of held-to-maturity securities
at December 31, 2012 and 2011:
December 31, 2012 December 31, 2011
Amortized Fair Amortized
(dollar amounts in thousands) Cost Value Cos
t
Fair Value
Federal agencies: mortgage-backed securities:
Under 1 year $ --- $ --- $ --- $ ---
1-5 years --- --- --- ---
6-10 years 24,901 24,739 --- ---
Over 10 years 1,624,483 1,672,702 640,551 660,186
Total Federal agencies: mortgage-backed securities 1,649,384 1,697,441 640,551 660,186
Other agencies:
Under 1 year --- --- --- ---
1-5 years --- --- --- ---
6-10 years 15,108 15,338 --- ---
Over 10 years 69,399 71,341 --- ---
Total other agencies 84,507 86,679 --- ---
Total U.S. Government backed agencies 1,733,891 1,784,120 640,551 660,186
Municipal securities:
Under 1 year --- --- --- ---
1-5 years --- --- --- ---
6-10 years --- --- --- ---
Over 10 years 9,985 9,985 --- ---
Total municipal securities 9,985 9,985 --- ---
Total held-to-maturity securities $1,743,876 $1,794,105 $640,551 $660,186