Huntington National Bank 2013 Annual Report Download - page 166

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Included in benefit costs are $1.7 million, $1.1 million, and $0.8 million of plan expenses that were recognized in the three years
ended December 31, 2013, 2012, and 2011. It is Huntington’s policy to recognize settlement gains and losses as incurred. Assuming
no cash contributions are made to the Plan during 2014, Management expects net periodic pension benefit, excluding any expense of
settlements, to approximate $5.9 million for 2014. The postretirement medical and life subsidy was eliminated for anyone that retires
on or after March 1, 2010. As such, there were no incremental net periodic post-retirement benefits costs associated with this plan.
The estimated transition obligation, prior service credit, and net actuarial loss for the plans that will be amortized from OCI into
net periodic benefit cost over the next fiscal year is zero, $1.3 million, and a $6.3 million benefit, respectively.
At December 31, 2013 and 2012, The Huntington National Bank, as trustee, held all Plan assets. The Plan assets consisted of
investments in a variety of corporate and government fixed income investments, Huntington mutual funds and Huntington common
stock as follows:
Fair Value
(dollar amounts in thousands) 2013 2012
Cash $ --- --- % $ 22 --- %
Cash equivalents:
Huntington funds - money market 803 --- 6,012 1
Fixed income:
Huntington funds - fixed income funds 74,048 11 84,688 13
Corporate obligations 180,757 28 149,241 24
U.S. Government Obligations 51,932 8 36,595 6
U.S. Government Agencies 6,146 1 7,511 1
Equities:
Huntington funds 289,379 45 312,479 49
Exchange Traded Funds 24,705 4 --- ---
Huntington common stock 20,324 3 37,069 6
Limited Partnerships 926 --- --- ---
Fair value of plan assets $ 649,020 100 % $ 633,617 100 %
Investments of the Plan are accounted for at cost on the trade date and are reported at fair value. All of the Plan’s investments at
December 31, 2013, are classified as Level 1 within the fair value hierarchy, except for corporate obligations, U.S. government
obligations, and U.S. government agencies, which are classified as Level 2. In general, investments of the Plan are exposed to various
risks, such as interest rate risk, credit risk, and overall market volatility. Due to the level of risk associated with certain investments, it
is reasonably possible changes in the values of investments will occur in the near term and such changes could materially affect the
amounts reported in the Plan assets.
The investment objective of the Plan is to maximize the return on Plan assets over a long time period, while meeting the Plan
obligations. At December 31, 2013, Plan assets were invested 52% in equity investments, and 48% in bonds, with an average duration
of 11.8 years on bond investments. The estimated life of benefit obligations was 11 years. Although it may fluctuate with market
conditions, Management has targeted a long-term allocation of Plan assets of 20% to 50% in equity investments and 80% to 50% in
bond investments. The allocation of Plan assets between equity investments and fixed income investments will change from time to
time with the allocation to fixed income investments increasing as the funding level increases.
The following table shows the number of shares and dividends received on shares of Huntington stock held by the Plan:
December 31,
(dollar amounts in thousands, except share amounts) 2013 2012
Shares in Huntington common stock(1) 2,095,304 5,764,986
Dividends received on shares of Huntington stock $ 992 $ 1,085
(1)The Plan has acquired and held Huntington common stock in compliance at all times with Section 407 of
the Employee Retirement Income Security Act of 1978.
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