Annual report pursuant to Section 13 and 15(d)

Held to Maturity Securities

Held to Maturity Securities
12 Months Ended
Dec. 31, 2011
Held to Maturity Securities [Abstract]  

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 during 2011. 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.

During 2011, Huntington purchased additional 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 December 31, 2011. There were no securities classified as held-to-maturity at December 31, 2010.


        December 31, 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   640,551     660,186  
  Total Federal agencies: mortgage-backed securities 640,551     660,186  
Total U.S. Government backed agencies   640,551     660,186  
Total held-to-maturity securities $ 640,551   $ 660,186  

The following table provides amortized cost, gross unrealized gains and losses, and fair value by investment category at December 31, 2011:

      Amortized     Gross     Gross     Fair
(dollar amounts in thousands)   Cost     Gains     Losses     Value
December 31, 2011                      
Federal Agencies:                      
  Mortgage-backed securities $ 640,551   $ 19,652   $ (17)   $ 660,186
Total U.S. Government                      
  backed securities   640,551     19,652     (17)     660,186
Total held-to-maturity securities $ 640,551   $ 19,652   $ (17)   $ 660,186

Security Impairment


Huntington evaluates the held-to-maturity securities portfolio on a quarterly basis for impairment. Impairment would exist when the present value of the expected cash flows is not sufficient to recover the entire amortized cost basis at the balance sheet date. Under these circumstances, any impairment would be recognized in earnings. As of December 31, 2011, Management has evaluated all held-to-maturity securities and concluded no impairment existed in the portfolio.