5. HELD-TO-MATURITY SECURITIES

These are debt securities that Huntington has the intent and ability to hold until maturity. The debt securities are carried at amortized cost and adjusted for amortization of premiums and accretion of discounts using the interest method.

Huntington transferred $469.1 million of federal agencies, mortgage-backed securities from the available-for-sale securities portfolio to the held-to-maturity securities portfolio in the 2011 second quarter. The securities were reclassified at fair value at the date of transfer. At the time of the transfer, $0.5 million of unrealized net gains were recognized in OCI. The amounts in OCI will be recognized in earnings over the remaining life of the securities as an offset to the adjustment of yield in a manner consistent with the amortization of the premium on the same transferred securities, resulting in an immaterial impact on net income.

Additionally, during the 2011 second quarter, Huntington purchased $204.3 million of federal agencies, mortgage-backed securities which were classified directly into the held-to-maturity portfolio.

Listed below are the contractual maturities (under 1 year, 1-5 years, 6-10 years, and over 10 years) of held-to-maturity securities at June 30, 2011. There were no securities classified as held-to-maturity at December 31, 2010 or June 30, 2010.

		June 30, 2011
		Amortized				Fair
(dollar amounts in thousands)		Cost				Value
Federal agencies: mortgage-backed securities:
Under 1 year		$	—			$	—
1-5 years			—				—
6-10 years			—				—
Over 10 years			670,478				670,145
Total Federal agencies: mortgage-backed securities			670,478				670,145
Total U.S. Government backed agencies			670,478				670,145
Total held-to-maturity securities		$	670,478			$	670,145

The following table provides amortized cost, gross unrealized gains and losses, and fair value by investment category at June 30, 2011:

						Unrealized
		Amortized				Gross				Gross				Fair
(dollar amounts in thousands)		Cost				Gains				Losses				Value
June 30, 2011
Federal Agencies:
Mortgage-backed securities		$	670,478			$	1,947			$	(2,280	)		$	670,145
Total U.S. Government backed securities			670,478				1,947				(2,280	)			670,145
Total held-to-maturity securities		$	670,478			$	1,947			$	(2,280	)		$	670,145