Huntington National Bank 2003 Annual Report Download - page 111

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
3. Acquisitions
On January 27, 2004, Huntington announced the signing of a definitive agreement to merge with Unizan Financial Corp. (Unizan) a
financial holding company based in Canton, Ohio, with $2.7 billion of assets at December 31, 2003. Under the terms of the agreement,
Unizan shareholders will receive 1.1424 shares of Huntington common stock, on a tax-free basis, for each share of Unizan. Based on
the $23.10 closing price of Huntington’s common stock on January 26, 2004, this represented a price of $26.39 per Unizan share, and
valued the transaction at approximately $587 million. The merger was unanimously approved by both boards and is expected to close
late in the second quarter, pending customary regulatory approvals, as well as Unizan shareholder approval.
During 2002, Huntington acquired Haberer Investment Advisor, Inc. (Haberer), a Cincinnati-based registered investment advisory
firm with approximately $500 million in assets under management. Huntington paid cash to Haberer shareholders and issued 202,695
shares of common stock from treasury. Also during 2002, Huntington acquired LeaseNet Group, Inc. (LeaseNet), a $90 million leasing
company located in Dublin, Ohio. Huntington paid cash to LeaseNet shareholders and issued 835,035 shares of common stock from
treasury. In addition, Huntington holds 544,357 common shares in escrow, to be released to LeaseNet’s shareholders contingent upon
the achievement of certain performance levels. Both of these acquisitions were accounted for using the purchase method of accounting.
4. Securities Available for Sale
Securities available for sale at December 31 were as follows:
Unrealized
(in thousands of dollars) Amortized Cost Gross Gains Gross Losses Fair Value
2003
U.S. Treasury $ 304,001 $ 4,410 $ (41) $ 308,370
Federal agencies
Mortgage-backed securities 1,811,793 19,782 (13,552) 1,818,023
Other agencies 1,162,896 13,137 (16,510) 1,159,523
Total U.S. Treasury and Federal agencies 3,278,690 37,329 (30,103) 3,285,916
Retained interests in securitizations 5,593 763 — 6,356
Other securities 1,626,399 10,962 (4,401) 1,632,960
Total Securities Available For Sale $4,910,682 $49,054 $(34,504) $4,925,232
2002
U.S. Treasury $ 18,550 $ 1,362 $ — $ 19,912
Federal agencies
Mortgage-backed securities 1,755,437 44,074 (254) 1,799,257
Other agencies 782,287 26,772 (544) 808,515
Total U.S. Treasury and Federal agencies 2,556,274 72,208 (798) 2,627,684
Retained interests in securitizations 146,160 13,818 — 159,978
Other securities 613,607 5,600 (3,500) 615,707
Total Securities Available For Sale $3,316,041 $91,626 $ (4,298) $3,403,369
Other securities available for sale include privately placed collateralized mortgage obligations, Federal Home Loan Bank and Federal
Reserve Bank stock, corporate debt and municipal securities, and marketable equity securities. Management does not believe any
individual unrealized loss as of December 31, 2003, represents an other than temporary impairment. Huntington has both the intent
and ability to hold the securities contained in the table above for a time necessary to recover the amortized cost.
HUNTINGTON BANCSHARES INCORPORATED 109