Huntington National Bank 2006 Annual Report Download - page 97

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS HUNTINGTON BANCSHARES INCORPORATED
Unrealized
(in thousands of dollars) Amortized Cost Gross Gains Gross Losses Fair Value
2005
U.S. Treasury $ 24,199 $ 131 $ (655) $ 23,675
Federal Agencies
Mortgage-backed securities 1,309,598 680 (31,256) 1,279,022
Other agencies 349,385 115 (13,034) 336,466
Total Federal agencies 1,658,983 795 (44,290) 1,615,488
Asset-backed securities 1,788,694 4,990 (4,904) 1,788,780
Municipal securities 544,781 5,003 (4,934) 544,850
Private label collaterized mortgage obligations 402,959 171 (9,561) 393,569
Other securities 159,522 751 (115) 160,158
Total investment securities $ 4,579,138 $ 11,841 $ (64,459) $ 4,526,520
Other securities include Federal Home Loan Bank and Federal Reserve Bank stock, corporate debt and marketable equity
securities.
Contractual maturities of investment securities as of December 31 were:
2006 2005
(in thousands of dollars) Amortized Cost Fair Value Amortized Fair Value
Under 1 year $ 7,490 $ 7,473 $ 1,765 $ 1,765
1-5 years 203,728 203,867 394,254 382,549
6-10 years 170,075 169,680 199,670 196,154
Over 10 years 3,802,375 3,824,111 3,838,730 3,800,751
Non-marketable equity securities 150,754 150,754 89,661 89,661
Marketable equity securities 6,481 7,039 55,058 55,640
Total investment securities $4,340,903 $4,362,924 $4,579,138 $4,526,520
At December 31, 2006, 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 $1.5 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,
2006.
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, 2006.
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 $ 99 $ — $ 146 $ (5) $ 245 $ (5)
Federal agencies
Mortgage-backed securities 131,122 (522) 10,188 (31) 141,310 (553)
Other agencies 99,531 (69) 697 (1) 100,228 (70)
Total Federal agencies 230,653 (591) 10,885 (32) 241,538 (623)
Asset-backed securities 297,916 (2,147) 59,925 (993) 357,841 (3,140)
Municipal securities 141,355 (764) 69,060 (1,612) 210,415 (2,376)
Private label collaterized mortgage obligations 38,309 (72) — — 38,309 (72)
Other securities 500 (2) 4,697 (65) 5,197 (67)
Total temporarily impaired securities $708,832 $ (3,576) $ 144,713 $ (2,707) $ 853,545 $ (6,283)
In October 2006, after receiving the resolution of the Internal Revenue Service’s audit of Huntington’s consolidated federal tax
return for tax years 2002 and 2003, Management began to review its securities portfolio. The resolution of the federal income tax
audit for tax years 2002 and 2003 resulted in the recognition of $84.5 million in tax provision benefit. The recognition of the tax
benefits increased Huntington’s regulatory capital, providing the capacity to sustain significant after-tax charges. Management
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