Huntington National Bank 2012 Annual Report Download - page 175

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Huntington has a defined contribution plan that is available to eligible employees. Huntington matched participant
contributions, up to the first 3% of base pay contributed to the Plan. Half of the employee contribution was matched on the 4th and
5th percent of base pay contributed to the Plan. Starting January 1, 2013, Huntington matches participant contributions dollar-for-
dollar, up to 4% of base pay contributed to the Plan.
The following table shows the costs of providing the defined contribution plan as of December 31:
December 31,
(dollar amounts in thousands) 2012 2011 2010
Defined contribution plan $ 16,926 $ 14,980 $ 8,787
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The following table shows the number of shares, market value, and dividends received on shares of Huntington stock held by
the defined contribution plan as of December 31:
December 31,
(dollar amounts in thousands, except share amounts) 2012 2011
Shares in Huntington common stock 14,892,094 15,051,291
Market value of Huntington common stock $ 95,160 $ 82,632
Dividends received on shares of Huntington stock 2,414 1,055
19. FAIR VALUES OF ASSETS AND LIABILITIES
Huntington follows the fair value accounting guidance under ASC 820 and ASC 825.
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the
principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the
measurement date. A three-level valuation hierarchy was established for disclosure of fair value measurements. The valuation
hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels
are defined as follows:
Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.
Level 2 – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that
are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.
Level 3 – inputs to the valuation methodology are unobservable and significant to the fair value measurement.
A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the
fair value measurement. Transfers in and out of Level 1, 2, or 3 are recorded at fair value at the beginning of the reporting period.
Following is a description of the valuation methodologies used for instruments measured at fair value, as well as the general
classification of such instruments pursuant to the valuation hierarchy.
Mortgage loans held for sale
Huntington elected to apply the fair value option for mortgage loans originated with the intent to sell which are included in loans
held for sale. Mortgage loans held for sale are classified as Level 2 and are estimated using security prices for similar product types.