Huntington National Bank 2008 Annual Report Download - page 56

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Table 31 — Investment Securities
(in thousands) 2008 2007 2006
At December 31,
U.S. Treasury $ 11,157 $ 556 $ 1,856
Federal agencies 2,231,821 1,744,216 1,431,410
Other 2,141,479 2,755,399 2,929,658
Total investment securities $4,384,457 $4,500,171 $4,362,924
Duration in years
(1)
5.2 3.2 3.2
Amortized
Cost Fair Value Yield
(2)
U.S. Treasury
Under 1 year $ 11,141 $ 11,157 1.44%
1-5 years ———
6-10 years ———
Over 10 years ———
Total U.S. Treasury 11,141 11,157 1.44
Federal agencies
Mortgage backed securities
Under 1 year ———
1-5 years ———
6-10 years 1 — 5.87
Over 10 years 1,625,655 1,627,581 5.85
Total mortgage-backed Federal agencies 1,625,656 1,627,581 5.85
Other agencies
Under 1 year ———
1-5 years 579,546 595,912 2.93
6-10 years 7,954 8,328 4.30
Over 10 years ———
Total other Federal agencies 587,500 604,240 2.95
Total Federal agencies 2,213,156 2,231,821 5.07
Municipal securities
Under 1 year ———
1-5 years 51,890 54,184 5.92
6-10 years 216,433 222,086 6.05
Over 10 years 441,825 434,076 6.74
Total municipal securities 710,148 710,346 6.46
Private label CMO
Under 1 year ———
1-5 years ———
6-10 years ———
Over 10 years 674,506 523,515 5.63
Total private label CMO 674,506 523,515 5.63
Asset backed securities
Under 1 year ———
1-5 years ———
6-10 years ———
Over 10 years 652,881 464,027 9.28
Total asset-backed securities 652,881 464,027 9.28
Other
Under 1 year 549 552 3.33
1-5 years 6,546 6,563 3.65
6-10 years 798 811 3.45
Over 10 years 64 136 5.41
Non-marketable equity securities 427,973 427,973 5.47
Marketable equity securities 8,061 7,556 4.17
Total other 443,991 443,591 5.34
Total investment securities $4,705,823 $4,384,457 5.82%
(1) The average duration assumes a market driven pre-payment rate on securities subject to pre-payment.
(2) Weighted average yields were calculated using amortized cost on a fully taxable equivalent basis, assuming a 35% tax rate.
Declines in the fair value of available for sale investment securities are recorded as either temporary impairment or other-than-
temporary impairment (OTTI). Temporary adjustments are recorded when the fair value of a security fluctuates from its historical
cost. Temporary adjustments are recorded in accumulated other comprehensive income, and impact our equity position.
Temporary adjustments do not impact net income. A recovery of available for sale security prices also is recorded as an adjustment
to other comprehensive income for securities that are temporarily impaired, and results in a positive impact to our equity position.
54
Management’s Discussion and Analysis Huntington Bancshares Incorporated