Huntington National Bank 2012 Annual Report Download - page 173

165
The investment objective of the Plan is to maximize the return on Plan assets over a long time period, while meeting the Plan
obligations. At December 31, 2012, Plan assets were invested less than 1% in cash and cash equivalents, 55% in equity investments,
and 44% in bonds, with an average duration of 12.0 years on bond investments. The estimated life of benefit obligations was 14
years. Although it may fluctuate with market conditions, Management has targeted a long-term allocation of Plan assets of 20% to
50% in equity investments and 80% to 50% in bond investments. The allocation of Plan assets between equity investments and fixed
income investments will change from time to time with the allocation to fixed income investments increasing as the funding level
increases.
The following table shows the number of shares and dividends received on shares of Huntington stock held by the Plan:
December 31,
(dollar amounts in thousands, except share amounts) 2012 2011
Shares in Huntington common stock(1) 5,764,986 7,309,986
Dividends received on shares of Huntington stock $ 1,085 $ 409
(1)The Plan has acquired and held Huntington common stock in compliance at all times with
Section 407 of the Employee Retirement Income Security Act of 1978.

At December 31, 2012, the following table shows when benefit payments, which include expected future service, as
appropriate, were expected to be paid:
Post-
Pension Retirement
(dollar amounts in thousands) Benefits Benefits
2013 $ 42,743 $ 3,837
2014 42,537 3,585
2015 42,960 3,369
2016 43,329 3,156
2017 43,903 2,994
2018 through 2022 240,842 12,380
Although not required, Huntington may choose to make a cash contribution to the Plan up to the maximum deductible limit
in the 2013 plan year. Anticipated contributions for 2013 to the post-retirement benefit plan are $3.1 million.
The assumed healthcare cost trend rate has an effect on the amounts reported. A one percentage point increase would
decrease service and interest costs and the post-retirement benefit obligation by less than $0.01million and $0.01 million, respectively.
A one percentage point decrease would increase service and interest costs and the post-retirement benefit obligation by less than $0.01
million and $0.02 million, respectively.
The 2013 and 2012 healthcare cost trend rate was projected to be 7.7% for pre-65 aged participants and 8.2% for post-65
aged participants. These rates are assumed to decrease gradually until they reach 4.5% for both pre-65 aged participants and post-65
aged participants in the year 2028 and remain at that level thereafter. Huntington updated the immediate healthcare cost trend rate
assumption based on current market data and Huntington’s claims experience. This trend rate is expected to decline over time to a
trend level consistent with medical inflation and long-term economic assumptions.
Huntington also sponsors other retirement plans, the most significant being the Supplemental Executive Retirement Plan and
the Supplemental Retirement Income Plan. These plans are nonqualified plans that provide certain current and former officers and
directors of Huntington and its subsidiaries with defined pension benefits in excess of limits imposed by federal tax law. At December
31, 2012 and 2011, Huntington has an accrued pension liability of $35.4 million and $26.9 million, respectively, associated with these
plans. Pension expense for the plans was $2.5 million, $1.8 million, and $1.8 million in 2012, 2011, and 2010, respectively.
The following table presents the amounts recognized in the Consolidated Balance Sheets at December 31, 2012 and 2011 for
all of Huntington defined benefit plans:
(dollar amounts in thousands) 2012 2011
Accrued expenses and other liabilities $ 213,335 $ 177,092