Huntington National Bank 2012 Annual Report Download - page 169

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In prior periods, Huntington established a full valuation allowance against state deferred tax assets and state net operating loss
carryforwards based on the uncertainty of forecasted state taxable income expected in applicable jurisdictions in order to utilize the
state deferred tax asset and net operating loss carryforwards. Based on current analysis of both positive and negative evidence and
projected forecasted state taxable income, the Company believes that it is more likely than not that a portion of the state deferred tax
asset and state net operating loss carryforwards will be realized. As a result of this analysis, a valuation allowance of $32.7 was
adjusted for the portion of the deferred tax asset and state net operating loss carryforwards the Company expects to realize.
A valuation allowance of $64.8 million remains for certain state deferred tax assets, state net operating loss carryforwards, and
capital loss carryfowards that are not expected to be realized within the carryforward periods. In Management’s opinion, the results of
future operations will generate sufficient taxable income to realize the net operating loss, alternative minimum tax credit carryforward,
charitable contribution carryforward, and general business credit carryforward. Consequently, Huntington determined that a valuation
allowance for these deferred tax assets was not required as of December 31, 2012.