Huntington National Bank 2009 Annual Report Download - page 194

F
air va
l
ues o
ff
inancia
l
instrument
s
T
h
e carr
yi
n
g
amounts an
d
est
i
mate
df
a
i
rva
l
ues o
f
Hunt
i
n
g
ton’s
fi
nanc
i
a
li
nstruments at Decem
b
er 31
,
2009 an
d
2008 are presente
di
nt
h
e
f
o
ll
ow
i
n
g
ta
bl
e:
Carryin
g
A
mount
Fai
r
V
alue
Carryin
g
Amount
Fai
r
Value
December
31
,
2009
December
31
,
2008
(
In thousands
)
Fin
a
n
c
i
a
lA
sse
t
s:
C
as
h
an
d
s
h
ort-term asset
s
.....
$
1
,
840
,
719
$
1
,
840
,
71
9
$
1
,
137
,
229
$
1
,
137
,
229
Tra
di
n
g
account secur
i
t
i
es
......
83,6
57
83,6
5
7
88
,6
77 88
,6
77
Loans
h
e
ld f
or sa
le
...........
461,64
7
461,64
7
390,438 390,438
In
v
estment secur
i
t
i
e
s
.........
8,
5
8
7
,914 8,
5
8
7
,914
4
,
384
,
4
5
74
,
384
,
4
5
7
N
et loans and direct financin
g
l
ease
s
...................
3
5
,308,184 32,
5
98,423
40,191,938 33,8
5
6,1
5
3
Der
iv
at
iv
es
.................
28
7
,
75
628
7
,
75
6
45
8
,
99
5
4
5
8
,
99
5
F
i
n
a
n
cia
lL
iabi
l
i
t
ies:
De
p
os
i
t
s
...................
(
40
,
493
,
927
)(
40
,
753
,
365
)
(
37,943,28
6) (
38,3
6
3,248
)
S
h
ort-term
b
orrow
i
n
gs
........
(
876
,
241
)(
857
,
254
)
(
1,309,1
5
7
)(
1,2
5
2,861
)
F
ede
r
a
lH
o
m
e
L
oa
nB
a
nk
a
d
vance
s
.................
(
168
,
977
)(
168
,
977
)
(
2,
5
88,976
)(
2,
5
88,44
5)
Ot
h
er
l
on
g
term
d
e
bt
.........
(
2
,
369
,
491
)(
2
,
332
,
300
)
(
2,331,
6
32
)(
1,979,441
)
S
u
b
or
di
nate
d
notes
...........
(
1
,
264
,
202
)(
989
,
989
)
(
1,9
5
0,097
)(
1,287,1
5
0
)
Derivatives
.................
(
238
,
947
)(
238
,
947
)
(
83,3
6
7
)(
83,3
6
7
)
The short-term nature of certain assets and liabilities result in their carr
y
in
g
value approximatin
g
fai
r
value. These include tradin
g
account securities, customers’ acceptance liabilities, short-term borrowin
g
s, ban
k
acceptances outstan
di
n
g
,Fe
d
era
l
Home Loan Ban
k
A
d
vances an
d
cas
h
an
d
s
h
ort-term assets, w
hi
c
hi
nc
l
u
de
cas
h
an
dd
ue
f
rom
b
an
k
s,
i
nterest-
b
ear
i
n
gd
epos
i
ts
i
n
b
an
k
s, an
df
e
d
era
lf
un
d
sso
ld
an
d
secur
i
t
i
es purc
h
ase
d
under resale a
g
reements. Loan commitments and letters of credit
g
enerall
y
have short-term, variable-rate
features and contain clauses that limit Huntin
g
ton’s exposure to chan
g
es in customer credit qualit
y.
Accor
di
n
gly
,t
h
e
i
r carr
yi
n
g
va
l
ues, w
hi
c
h
are
i
mmater
i
a
l
at t
h
e respect
i
ve
b
a
l
ance s
h
eet
d
ates, are reasona
ble
est
i
mates o
ff
a
i
rva
l
ue. Not a
ll
t
h
e
fi
nanc
i
a
li
nstruments
li
ste
di
nt
h
eta
bl
ea
b
ove are su
bj
ect to t
h
e
di
sc
l
osur
e
p
rovisions of ASC 820
.
Certain assets, the most si
g
nificant bein
g
operatin
g
lease assets, bank owned life insurance, and premise
s
and e
q
ui
p
ment, do not meet the definition of a financial instrument and are excluded from this disclosure
.
S
i
m
il
ar
ly
, mort
g
a
g
ean
d
non-mort
g
a
g
e serv
i
c
i
n
g
r
igh
ts,
d
epos
i
t
b
ase, an
d
ot
h
er customer re
l
at
i
ons
hi
p
i
ntan
gi-
bles are not considered financial instruments and are not included above. Accordin
g
l
y
, this fair valu
e
information is not intended to, and does not, represent Huntin
g
ton’s underl
y
in
g
value. Man
y
of the assets and
li
a
bili
t
i
es su
bj
ect to t
h
e
di
sc
l
osure requ
i
rements are not act
i
ve
ly
tra
d
e
d
, requ
i
r
i
n
gf
a
i
rva
l
ues to
b
e est
i
mate
d
by
mana
g
ement. T
h
ese est
i
mat
i
ons necessar
ily i
nvo
l
ve t
h
e use o
fj
u
dg
ment a
b
out a w
id
evar
i
et
y
o
ff
actors,
includin
g
but not limited to, relevanc
y
of market prices of comparable instruments, expected future cash flows
,
and a
pp
ro
p
riate discount rates.
The followin
g
methods and assumptions were used b
y
Huntin
g
ton to estimate the fair value of the
rema
i
n
i
n
g
c
l
asses o
ffi
nanc
i
a
li
nstruments
:
L
oans and Direct Financin
g
Lease
s
Var
i
a
bl
e-rate
l
oans t
h
at repr
i
ce
f
requent
ly
are
b
ase
d
on carr
yi
n
g
amounts, as a
dj
uste
df
or est
i
mate
d
cre
dit
losses. The fair values for other loans and leases are estimated usin
g
discounted cash flow anal
y
ses an
d
emp
l
o
yi
nterest rates current
ly b
e
i
n
g
o
ff
ere
df
or
l
oans an
dl
eases w
i
t
h
s
i
m
il
ar terms. T
h
e rates ta
k
e
i
nt
o
account t
h
e pos
i
t
i
on o
f
t
h
e
yi
e
ld
curve, as we
ll
as an a
dj
ustment
f
or prepa
y
ment r
i
s
k
, operat
i
n
g
costs, an
d
1
86