Huntington National Bank 2014 Annual Report Download - page 180

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Fair values of financial instruments
The following table provides the carrying amounts and estimated fair values of Huntington’s financial instruments that are carried
either at fair value or cost at December 31, 2014 and December 31, 2013:
December 31, 2014 December 31, 2013
Carrying Fair Carrying Fair
(dollar amounts in thousands) Amount Value Amount Value
Financial Assets:
Cash and short-term assets $ 1,285,124 $ 1,285,124 $ 1,058,175 $ 1,058,175
Trading account securities 42,191 42,191 35,573 35,573
Loans held for sale 416,327 416,327 326,212 326,212
Available-for-sale and other securities 9,384,670 9,384,670 7,308,753 7,308,753
Held-to-maturity securities 3,379,905 3,382,715 3,836,667 3,760,898
N
et loans and direct financing leases 47,050,530 45,110,406 42,472,630 40,976,014
Derivatives 352,642 352,642 200,029 200,029
Financial Liabilities:
Deposits 51,732,151 52,454,804 47,506,718 48,132,550
Short-term borrowings 2,397,101 2,397,101 2,352,143 2,343,552
Long term debt 4,335,962 4,286,304 2,458,272 2,424,564
Derivatives 284,255 284,255 129,274 129,274
The following table presents the level in the fair value hierarchy for the estimated fair values of only Huntington’s financial
instruments that are not already on the Consolidated Balance Sheets at fair value at December 31, 2014 and December 31, 2013:
Estimated Fair Value Measurements at Reporting Date Using Balance at
(dollar amounts in thousands) Level 1 Level 2 Level 3 December 31, 2014
Financial Assets
Held-to-maturity securities $ --- $ 3,382,715 $ --- $ 3,382,715
N
et loans and direct financing leases --- --- 45,110,406 45,110,406
Financial liabilities
Deposits --- 48,183,798 4,271,006 52,454,804
Short-term borrowings --- --- 2,397,101 2,397,101
Long-term debt --- --- 4,286,304 4,286,304
Estimated Fair Value Measurements at Reporting Date Using Balance at
(dollar amounts in thousands) Level 1 Level 2 Level 3 December 31, 2013
Financial Assets
Held-to-maturity securities $ --- $ 3,760,898 $ --- $ 3,760,898
N
et loans and direct financing leases --- --- 40,976,014 40,976,014
Financial liabilities
Deposits --- 42,279,542 5,853,008 48,132,550
Short-term borrowings --- --- 2,343,552 2,343,552
Long-term debt --- --- 2,424,564 2,424,564
The short-term nature of certain assets and liabilities result in their carrying value approximating fair value. These include trading
account securities, customers’ acceptance liabilities, short-term borrowings, bank acceptances outstanding, FHLB advances, and cash
and short-term assets, which include cash and due from banks, interest-bearing deposits in banks, and federal funds sold and securities
purchased under resale agreements. Loan commitments and letters of credit generally have short-term, variable-rate features and
contain clauses that limit Huntington’s exposure to changes in customer credit quality. Accordingly, their carrying values, which are
immaterial at the respective balance sheet dates, are reasonable estimates of fair value. Not all the financial instruments listed in the
table above are subject to the disclosure provisions of ASC Topic 820.