Huntington National Bank 2010 Annual Report Download - page 191

Huntington has a defined contribution plan that is available to eligible employees. In the first quarter of
2009, the plan was amended to eliminate employer matching contributions effective on or after March 15,
2009. Prior to March 15, 2009, Huntington matched participant contributions, up to the first 3% of base pay
contributed to the plan. Half of the employee contribution was matched on the 4th and 5th percent of base pay
contributed to the plan. Effective May 1, 2010, Huntington reinstated the employer matching contribution to
the defined contribution plan. The cost of providing this plan was $8.8 million in 2010, $3.1 million in 2009,
and $15.0 million in 2008. The number of shares of Huntington common stock held by this plan was
14,945,498 at December 31, 2010, and 14,714,170 at December 31, 2009. The market value of these shares
was $102.7 million and $53.7 million at the same respective dates. Dividends received on shares of Huntington
common stock by the plan were $5.6 million during 2010 and $5.1 million during 2009.
19. FAIR VALUES OF ASSETS AND LIABILITIES
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a
liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly
transaction between market participants on the measurement date. A three-level valuation hierarchy was
established for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency
of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as
follows:
Level 1 — inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or
liabilities in active markets.
Level 2 — inputs to the valuation methodology include quoted prices for similar assets and liabilities
in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for
substantially the full term of the financial instrument.
Level 3 — inputs to the valuation methodology are unobservable and significant to the fair value
measurement. Financial instruments are considered Level 3 when values are determined using pricing
models, discounted cash flow methodologies, or similar techniques, and at least one significant model
assumption or input is unobservable.
A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of
input that is significant to the fair value measurement.
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