Huntington National Bank 2005 Annual Report Download - page 113

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NOTES TOCONSOLIDATED FINANCIAL STATEMENTS HUNTINGTON BANCSHARES INCORPORATED
At December 31, 2005, the carrying value of investment securities pledged to secure public and trust deposits, trading account
liabilities, U.S. Treasury demand notes, and security repurchase agreements totaled $1.4 billion. There were no securities of a
single issuer, which are not governmental or government-sponsored, that exceeded 10% of shareholders’ equity at December 31,
2005.
The following table provides the gross unrealized losses and fair value of temporarily impaired securities, aggregated by
investment category and length of time the individual securities have been in a continuous loss position, at December 31, 2005.
Less than 12 Months Over 12 Months Total
Unrealized Unrealized Unrealized
(in thousands of dollars) Fair Value Losses Fair Value Losses Fair Value Losses
U.S. Treasury $ — $ — $ 19,857 $ (655) $ 19,857 $ (655)
Federal agencies
Mortgage-backed securities 658,407 (13,536) 431,877 (17,720) 1,090,284 (31,256)
Other agencies — — 334,051 (13,034) 334,051 (13,034)
Total Federal agencies 658,407 (13,536) 765,928 (30,754) 1,424,335 (44,290)
Asset-backed securities 725,215 (4,739) 87,379 (165) 812,594 (4,904)
Municipal securities 214,634 (2,976) 51,334 (1,958) 265,968 (4,934)
Private label CMO 42,501 (750) 336,309 (8,811) 378,810 (9,561)
Other securities 3,219 (32) 2,540 (83) 5,759 (115)
Total temporarily impaired securities $1,643,976 $ (22,033) $1,263,347 $ (42,426) $2,907,323 $ (64,459)
As of December 31, 2005, Management has evaluated these investment securities with unrealized losses and all non-marketable
securities for impairment. The unrealized losses were caused by interest rate increases. 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 has the intent
and ability to hold these investment 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, 2005.
In 2004, Management determined that $11.0 million of equity securities, with unrealized losses of $0.9 million were other-than-
temporarily impaired. Consequently, Huntington recognized the unrealized losses in 2004 as non-interest income. There were no
other-than-temporary impairments of any securities recognized in 2005 or 2003.
Gross gains from sales of securities of $8.5 million, $34.7 million, and $14.5 million, were realized in 2005, 2004, and 2003,
respectively. Gross losses totaled $16.6 million in 2005, $19.0 million in 2004, and $9.2 million in 2003.
4. LOANS AND LEASES
At December 31, 2005, $2.4 billion of commercial and industrial loans were pledged to secure potential discount window
borrowings from the Federal Reserve Bank. At this same date, $4.2 billion of real estate qualifying loans were pledged to secure
advances from the Federal Home Loan Bank. Real estate qualifying loans are comprised of residential mortgage loans secured by
first and second liens.
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