4. AVAILABLE-FOR-SALE AND OTHER SECURITIES

Listed below are the contractual maturities (under 1 year, 1-5 years, 6-10 years, and over 10 years) of available-for-sale and other securities at June 30, 2011, December 31, 2010, and June 30, 2010:

		June 30, 2011								December 31, 2010								June 30, 2010
		Amortized								Amortized								Amortized
(dollar amounts in thousands)		Cost				Fair Value				Cost				Fair Value				Cost				Fair Value
U.S. Treasury:
Under 1 year		$	—			$	—			$	—			$	—			$	—			$	—
1-5 years			52,103				52,301				52,425				51,781				49,997				50,328
6-10 years			—				—				—				—				—				—
Over 10 years			—				—				—				—				—				—
Total U.S. Treasury			52,103				52,301				52,425				51,781				49,997				50,328
Federal agencies: mortgage-backed securities:
Under 1 year			—				—				—				—				—				—
1-5 years			48,243				48,332				—				—				—				—
6-10 years			440,304				451,708				656,176				664,793				716,844				731,350
Over 10 years			3,360,382				3,422,665				4,077,655				4,089,611				3,689,229				3,774,601
Total Federal agencies: mortgage-backed securities			3,848,929				3,922,705				4,733,831				4,754,404				4,406,073				4,505,951
TLGP securities:
Under 1 year			155,637				156,303				156,450				157,931				—				—
1-5 years			—				—				25,230				25,536				182,552				184,757
6-10 years			—				—				—				—				—				—
Over 10 years			—				—				—				—				—				—
Total TLGP securities			155,637				156,303				181,680				183,467				182,552				184,757
Other agencies:
Under 1 year			153,241				154,039				158,273				159,288				187,627				188,549
1-5 years			1,059,456				1,054,447				1,898,867				1,885,230				1,692,684				1,703,421
6-10 years			13,391				13,788				13,082				13,359				11,030				11,478
Over 10 years			—				—				500				499				—				—
Total other agencies			1,226,088				1,222,274				2,070,722				2,058,376				1,891,341				1,903,448
Total U.S. Government backed agencies			5,282,757				5,353,583				7,038,658				7,048,028				6,529,963				6,644,484
Municipal securities:
Under 1 year			855				855				—				—				—				—
1-5 years			150,878				152,783				149,151				148,587				26,393				27,164
6-10 years			143,735				145,798				124,552				125,656				87,428				90,904
Over 10 years			130,948				133,260				182,341				181,472				254,786				257,848
Total municipal securities			426,416				432,696				456,044				455,715				368,607				375,916
Private-label CMO:
Under 1 year			—				—				—				—				—				—
1-5 years			—				—				—				—				—				—
6-10 years			14,140				14,374				10,429				10,887				13,820				14,031
Over 10 years			83,597				74,396				124,080				111,038				412,882				380,580
Total private-label CMO			97,737				88,770				134,509				121,925				426,702				394,611
Asset-backed securities:
Under 1 year			—				—				19,669				19,694				40,000				40,138
1-5 years			553,221				557,370				697,001				700,749				588,876				592,301
6-10 years			124,826				126,418				323,411				323,995				168,382				169,246
Over 10 years			290,794				165,742				301,326				162,684				365,201				218,940
Total asset-backed securities (1)			968,841				849,530				1,341,407				1,207,122				1,162,459				1,020,625
Covered bonds:
Under 1 year			—				—				—				—				—				—
1-5 years			600,888				600,055				379,711				367,209				—				—
6-10 years			—				—				—				—				—				—
Over 10 years			—				—				—				—				—				—
Total covered bonds			600,888				600,055				379,711				367,209				—				—
Corporate debt:
Under 1 year			—				—				—				—				—				—
1-5 years			409,283				407,969				329,988				323,389				—				—
6-10 years			—				—				—				—				—				—
Over 10 years			—				—				—				—				—				—
Total corporate debt			409,283				407,969				329,988				323,389				—				—
Other:
Under 1 year			750				750				800				802				300				308
1-5 years			8,220				8,447				7,810				8,009				6,722				6,884
6-10 years			704				735				1,007				1,037				1,104				1,222
Over 10 years			—				—				—				—				—				—
Non-marketable equity securities			303,661				303,661				308,722				308,722				304,915				304,915
Marketable equity securities			54,126				53,520				53,944				53,286				55,436				54,753
Total other			367,461				367,113				372,283				371,856				368,477				368,082
Total available-for-sale and other securities		$	8,153,383			$	8,099,716			$	10,052,600			$	9,895,244			$	8,856,208			$	8,803,718

Other securities at June 30, 2011, December 31, 2010, and June 30, 2010 include $165.6 million of stock issued by the FHLB of Cincinnati, $29.3 million, $37.4 million, and $45.7 million, respectively, of stock issued by the FHLB of Indianapolis, and $108.8 million, $105.7 million and $93.6 million, respectively, of Federal Reserve Bank stock. Other securities also include corporate debt and marketable equity securities. Non-marketable equity securities are valued at amortized cost. At June 30, 2011, December 31, 2010, and June 30, 2010, Huntington did not have any material equity positions in FNMA or FHLMC.

The following tables provide amortized cost, fair value, and gross unrealized gains and losses recognized in accumulated other comprehensive income by investment category at June 30, 2011, December 31, 2010, and June 30, 2010.

						Unrealized
		Amortized				Gross				Gross				Fair
(dollar amounts in thousands)		Cost				Gains				Losses				Value
June 30, 2011
U.S. Treasury		$	52,103			$	198			$	—			$	52,301
Federal Agencies:
Mortgage-backed securities			3,848,929				80,855				(7,079	)			3,922,705
TLGP securities			155,637				666				—				156,303
Other agencies			1,226,088				2,288				(6,102	)			1,222,274
Total U.S. Government backed securities			5,282,757				84,007				(13,181	)			5,353,583
Municipal securities			426,416				7,698				(1,418	)			432,696
Private-label CMO			97,737				994				(9,961	)			88,770
Asset-backed securities			968,841				5,801				(125,112	)			849,530
Covered bonds			600,888				3,193				(4,026	)			600,055
Corporate debt			409,283				454				(1,768	)			407,969
Other securities			367,461				424				(772	)			367,113
Total available-for-sale and other securities		$	8,153,383			$	102,571			$	(156,238	)		$	8,099,716

						Unrealized
		Amortized				Gross				Gross				Fair
(dollar amounts in thousands)		Cost				Gains				Losses				Value
December 31, 2010
U.S. Treasury		$	52,425			$	—			$	(644	)		$	51,781
Federal Agencies:
Mortgage-backed securities			4,733,831				71,901				(51,328	)			4,754,404
TLGP securities			181,680				1,787				—				183,467
Other agencies			2,070,722				4,874				(17,220	)			2,058,376
Total U.S. Government backed securities			7,038,658				78,562				(69,192	)			7,048,028
Municipal securities			456,044				6,154				(6,483	)			455,715
Private-label CMO			134,509				1,236				(13,820	)			121,925
Asset-backed securities			1,341,407				6,563				(140,848	)			1,207,122
Covered bonds			379,711				—				(12,502	)			367,209
Corporate debt			329,988				24				(6,623	)			323,389
Other securities			372,283				364				(791	)			371,856
Total available-for-sale and other securities		$	10,052,600			$	92,903			$	(250,259	)		$	9,895,244

						Unrealized
		Amortized				Gross				Gross				Fair
(dollar amounts in thousands)		Cost				Gains				Losses				Value
June 30, 2010
U.S. Treasury		$	49,997			$	331			$	—			$	50,328
Federal Agencies:
Mortgage-backed securities			4,406,073				102,435				(2,557	)			4,505,951
TLGP securities			182,552				2,205				—				184,757
Other agencies			1,891,341				12,108				(1	)			1,903,448
Total U.S. Government backed securities			6,529,963				117,079				(2,558	)			6,644,484
Municipal securities			368,607				7,334				(25	)			375,916
Private-label CMO			426,702				534				(32,625	)			394,611
Asset-backed securities			1,162,459				4,805				(146,639	)			1,020,625
Covered bonds			—				—				—				—
Corporate debt			—				—				—				—
Other securities			368,477				367				(762	)			368,082
Total available-for-sale and other securities		$	8,856,208			$	130,119			$	(182,609	)		$	8,803,718

The following tables provide detail on investment securities with unrealized losses aggregated by investment category and length of time the individual securities have been in a continuous loss position, at June 30, 2011, December 31, 2010, and June 30, 2010.

		Less than 12 Months								Over 12 Months								Total
		Fair				Unrealized				Fair				Unrealized				Fair				Unrealized
(dollar amounts in thousands)		Value				Losses				Value				Losses				Value				Losses
June 30, 2011
U.S. Treasury		$	—			$	—			$	—			$	—			$	—			$	—
Federal agencies:
Mortgage-backed securities			647,974				(7,079	)			—				—				647,974				(7,079	)
TLGP securities			—				—				—				—				—				—
Other agencies			753,680				(6,057	)			4,169				(45	)			757,849				(6,102	)
Total U.S. Government backed securities			1,401,654				(13,136	)			4,169				(45	)			1,405,823				(13,181	)
Municipal securities			133,740				(1,358	)			3,760				(60	)			137,500				(1,418	)
Private-label CMO			—				—				59,611				(9,961	)			59,611				(9,961	)
Asset-backed securities			—				—				154,837				(125,112	)			154,837				(125,112	)
Covered bonds			239,895				(4,026	)			—				—				239,895				(4,026	)
Corporate debt			338,080				(1,768	)			—				—				338,080				(1,768	)
Other securities			1,494				(11	)			2,383				(761	)			3,877				(772	)
Total temporarily impaired securities		$	2,114,863			$	(20,299	)		$	224,760			$	(135,939	)		$	2,339,623			$	(156,238	)

		Less than 12 Months								Over 12 Months								Total
		Fair				Unrealized				Fair				Unrealized				Fair				Unrealized
(dollar amounts in thousands)		Value				Losses				Value				Losses				Value				Losses
December 31, 2010
U.S. Treasury		$	51,781			$	(644	)		$	—			$	—			$	51,781			$	(644	)
Federal agencies:
Mortgage-backed securities			1,424,431				(51,328	)			—				—				1,424,431				(51,328	)
TLGP securities			—				—				—				—				—				—
Other agencies			1,217,074				(17,134	)			4,771				(86	)			1,221,845				(17,220	)
Total U.S. Government backed securities			2,693,286				(69,106	)			4,771				(86	)			2,698,057				(69,192	)
Municipal securities			201,370				(6,363	)			3,700				(120	)			205,070				(6,483	)
Private-label CMO			—				—				85,617				(13,820	)			85,617				(13,820	)
Asset-backed securities			214,983				(2,129	)			146,866				(138,719	)			361,849				(140,848	)
Covered bonds			367,209				(12,502	)			—				—				367,209				(12,502	)
Corporate debt			288,660				(6,623	)			—				—				288,660				(6,623	)
Other securities			—				—				41,218				(791	)			41,218				(791	)
Total temporarily impaired securities		$	3,765,508			$	(96,723	)		$	282,172			$	(153,536	)		$	4,047,680			$	(250,259	)

		Less than 12 Months								Over 12 Months								Total
		Fair				Unrealized				Fair				Unrealized				Fair				Unrealized
(dollar amounts in thousands)		Value				Losses				Value				Losses				Value				Losses
June 30, 2010
U.S. Treasury		$	—			$	—			$	—			$	—			$	—			$	—
Federal agencies:
Mortgage-backed securities			257,773				(2,557	)			—				—				257,773				(2,557	)
TLGP securities			—				—				—				—				—				—
Other agencies			—				—				250				(1	)			250				(1	)
Total U.S. Government backed securities			257,773				(2,557	)			250				(1	)			258,023				(2,558	)
Municipal securities			3,992				(8	)			3,803				(17	)			7,795				(25	)
Private-label CMO			—				—				337,044				(32,625	)			337,044				(32,625	)
Asset-backed securities			77,834				(7,990	)			206,835				(138,649	)			284,669				(146,639	)
Covered bonds			—				—				—				—				—				—
Corporate debt			—				—				—				—				—				—
Other securities			39,427				(519	)			811				(243	)			40,238				(762	)
Total temporarily impaired securities		$	379,026			$	(11,074	)		$	548,743			$	(171,535	)		$	927,769			$	(182,609	)

The following table is a summary of realized securities gains and losses for the three-month and six-month periods ended June 30, 2011 and 2010:

		Three Months Ended								Six Months Ended
		June 30,								June 30,
(dollar amounts in thousands)		2011				2010				2011				2010
Gross gains on sales of securities		$	9,623			$	8,105			$	16,358			$	14,881
Gross (losses) on sales of securities			(7,934	)			(5,125	)			(10,464	)			(5,471	)
Net gain on sales of securities			1,689				2,980				5,894				9,410
Other-than-temporary impairment recorded			(182	)			(2,824	)			(4,347	)			(9,285	)
Total securities gain (loss)		$	1,507			$	156			$	1,547			$	125

Security Impairment

Huntington evaluates its available-for-sale securities portfolio on a quarterly basis for OTTI. Huntington assesses whether OTTI has occurred when the fair value of a debt security is less than the amortized cost basis at period-end. Under these circumstances, OTTI is considered to have occurred; (1) if Huntington intends to sell the security; (2) if it is more likely than not Huntington will be required to sell the security before recovery of its amortized cost basis; or (3) the present value of the expected cash flows is not sufficient to recover the entire amortized cost basis.

For securities Huntington does not expect to sell or it is not more likely than not to be required to sell, credit-related OTTI, represented by the expected loss in principal, is recognized in earnings, while noncredit-related OTTI is recognized in OCI. For securities which Huntington does expect to sell, all OTTI is recognized in earnings. Noncredit-related OTTI results from other factors, including increased liquidity spreads and extension of the security. Presentation of OTTI is made in the Unaudited Condensed Consolidated Statements of Income on a gross basis with a reduction for the amount of OTTI recognized in OCI.

Huntington applied the related OTTI guidance on the debt security types listed below.

Alt-A mortgage-backed and private-label CMO securities are 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 uses inputs such as estimated prepayment speeds, losses, recoveries, default rates that are implied by the underlying performance of collateral in the structure or similar structures, discount rates that are implied by market prices for similar securities, collateral structure types, and house price depreciation / appreciation rates that are based upon macroeconomic forecasts.

Pooled-trust-preferred securities are CDOs backed by a pool of debt securities issued by financial institutions. The collateral generally consists of trust-preferred securities and subordinated debt securities issued by banks, bank holding companies, and insurance companies. A full cash flow analysis is 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.

For the three-month and six-month periods ended June 30, 2011 and 2010, the following tables summarize by debt security type, total OTTI losses, unrealized OTTI losses included in OCI, and OTTI recognized in the Unaudited Condensed Consolidated Statements of Income for securities evaluated for impairment as described above.

		Three Months Ended June 30,
		Alt-A				Pooled-				Private-
(dollar amounts in thousands)		Mortgage-backed				trust-preferred				label CMO				Total
2011
Total OTTI recoveries (losses) (unrealized and realized)		$	(166	)		$	432			$	952			$	1,218
Unrealized OTTI (recoveries) losses recognized in OCI			108				(432	)			(1,076	)			(1,400	)
Net impairment losses recognized in earnings		$	(58	)		$	—			$	(124	)		$	(182	)
2010
Total OTTI recoveries (losses) (unrealized and realized)		$	399			$	3,001			$	1,793			$	5,193
Unrealized OTTI (recoveries) losses recognized in OCI			(959	)			(3,001	)			(4,057	)			(8,017	)
Net impairment losses recognized in earnings		$	(560	)		$	—			$	(2,264	)		$	(2,824	)

		Six Months Ended June 30,
		Alt-A				Pooled-				Private-
(dollar amounts in thousands)		Mortgage-backed				trust-preferred				label CMO				Total
2011
Total OTTI (losses) recoveries (unrealized and realized)		$	936			$	6,830			$	3,328			$	11,094
Unrealized OTTI losses (recoveries) recognized in OCI			(1,166	)			(10,037	)			(4,238	)			(15,441	)
Net impairment losses recognized in earnings		$	(230	)		$	(3,207	)		$	(910	)		$	(4,347	)
2010
Total OTTI (losses) recoveries (unrealized and realized)		$	(4,177	)		$	2,352			$	(1,382	)		$	(3,207	)
Unrealized OTTI losses (recoveries) recognized in OCI			2,975				(5,567	)			(3,486	)			(6,078	)
Net impairment losses recognized in earnings		$	(1,202	)		$	(3,215	)		$	(4,868	)		$	(9,285	)

The following table rolls forward the unrealized OTTI recognized in OCI on debt securities held by Huntington for the three-month and six-month periods ended June 30, 2011 and 2010:

		Three Months Ended								Six Months Ended
		June 30,								June 30,
(dollar amounts in thousands)		2011				2010				2011				2010
Balance, beginning of period		$	86,797			$	126,347			$	100,838			$	124,408
Reductions from sales of securities with credit impairment			(1,054	)			—				(1,054	)			—
Noncredit impairment on securities not previously considered credit impaired			—				786				—				8,909
Change due to improvement in expected cash flows			(1,996	)			(9,513	)			(16,037	)			(17,660	)
Additional noncredit impairment on securities with previous credit impairment			1,650				710				1,650				2,673
Balance, end of period		$	85,397			$	118,330			$	85,397			$	118,330

The following table rolls forward the OTTI recognized in earnings on debt securities held by Huntington for the three-month and six-month periods ended June 30, 2011 and 2010 as follows.

		Three Months Ended								Six Months Ended
		June 30,								June 30,
(dollar amounts in thousands)		2011				2010				2011				2010
Balance, beginning of period		$	58,701			$	57,781			$	54,536			$	53,801
Reductions from sales			(4,481	)			(1,993	)			(4,481	)			(4,474	)
Credit losses not previously recognized			—				392				—				1,558
Additional credit losses			182				2,432				4,347				7,727
Balance, end of period		$	54,402			$	58,612			$	54,402			$	58,612

The fair values of these assets have been impacted by various market conditions. The unrealized losses were primarily the result of wider liquidity spreads on asset-backed securities and increased market volatility on nonagency mortgage and asset-backed securities that are collateralized by certain mortgage loans. In addition, the expected average lives of the asset-backed securities backed by trust-preferred securities have been extended, due to changes in the expectations of when the underlying securities would be repaid. The contractual terms and / or cash flows of the investments do not permit the issuer to settle the securities at a price less than the amortized cost. Huntington does not intend to sell, nor does it believe it will be required to sell these securities until the fair value is recovered, which may be maturity and, therefore, does not consider them to be other-than-temporarily impaired at June 30, 2011.

As of June 30, 2011, Management has evaluated all other investment securities with unrealized losses and all non-marketable securities for impairment and concluded no additional OTTI is required.