Huntington National Bank 2010 Annual Report Download - page 159

Contractual maturities of investment securities as of December 31 were:
Amortized
Cost
Fair
Value
Amortized
Cost
Fair
Value
2010 2009
(Dollar amounts in thousands)
Under 1 year ...................... $ 335,192 $337,715 $ 162,238 $ 164,768
1 — 5 years ....................... 3,540,183 3,510,490 3,278,176 3,279,359
6 — 10 years ...................... 1,128,657 1,139,727 1,013,065 1,019,152
Over 10 years...................... 4,685,902 4,545,304 3,863,487 3,694,008
Nonmarketable equity securities ........ 308,722 308,722 376,640 376,640
Marketable equity securities ........... 53,944 53,286 54,482 53,987
Total available-for-sale and other
securities ....................... $10,052,600 $9,895,244 $8,748,088 $8,587,914
At December 31, 2010, 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
$4.7 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, 2010.
The following table is a summary of securities gains and losses for the years ended December 31, 2010,
2009 and 2008:
2010 2009 2008
(Dollar amounts in thousands)
Gross gains on sales of securities ....................... $28,992 $ 59,762 $ 9,364
Gross (losses) on sales of securities ..................... (15,544) (10,947) (10)
Net gain (loss) on sales of securities .................... 13,448 48,815 9,354
OTTI recorded — pre adoption(1) ....................... — (3,937) (206,724)
OTTI recorded — post adoption(1) ...................... (13,722) (55,127) —
Net OTTI recorded................................. (13,722) (59,064) (206,724)
Total securities gain (loss) ........................... $ (274) $(10,249) $(197,370)
(1) Huntington adopted the current OTTI provisions of ASC Topic 320 on April 1, 2009.
Huntington applied the related OTTI guidance as further described in Note 1 on the debt security types
listed below.
Alt-A mortgage-backed and private-label CMO securities represent securities collateralized by first-lien
residential mortgage loans. The securities are valued by a third party specialist using a discounted cash flow
approach and proprietary pricing model. The model used inputs such as estimated prepayment speeds, losses,
recoveries, default rates that were implied by the underlying performance of collateral in the structure or
similar structures, discount rates that were implied by market prices for similar securities, collateral structure
types, and house price depreciation/appreciation rates that were based upon macroeconomic forecasts.
Pooled-trust-preferred securities represent CDOs backed by a pool of debt securities issued by financial
institutions. The collateral generally consisted of trust-preferred securities and subordinated debt securities
issued by banks, bank holding companies, and insurance companies. A full cash flow analysis was used to
estimate fair values and assess impairment for each security within this portfolio. We engaged a third party
specialist with direct industry experience in pooled-trust-preferred securities valuations to provide assistance in
estimating the fair value and expected cash flows for each security in this portfolio. Relying on cash flows is
necessary because there was a lack of observable transactions in the market and many of the original sponsors
or dealers for these securities are no longer able to provide a fair value that is compliant with ASC 820.
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