Huntington Bancshares Incorporated Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2011

Goodwill and Other Intangible Assets [Abstract]

7. Goodwill and Other Intangible Assets

In late 2010, Huntington reorganized its internal reporting structure. Business segments are based on segment leadership structure, which reflects how segment performance is monitored and assessed. The primary changes to the business segments were: (1) the AFDS and Commercial Real Estate segments were combined into one segment, (2) the Home Lending area moved from the Retail and Business Banking segment to the PFG segment, (3) the PFG segment was renamed Wealth Advisors, Government Finance, and Home Lending, (WGH), (4) certain capital market businesses moved from the former PFG operating segment to the Commercial Banking operating segment, and (5) the insurance business area moved from WGH to Treasury / Other. Goodwill was assigned to the new reporting units affected using a relative fair value allocation.

No segments were changed and no reallocation of goodwill occurred in 2011.

A rollforward of goodwill by business segment for the years ended December 31, 2011 and 2010, including the reallocation noted above, was as follows:

		Retail &			Regional &
		Business		Commercial							Treasury/	Huntington
(dollar amounts in thousands)		Banking		Banking		AFCRE			WGH		Other	Consolidated
Balance, January 1, 2010		$	310,138	$	5,008	$	---	$	124,283	$	4,839	$	444,268
	Reallocation of goodwill		(23,314)		11,161		---		(25,332)		37,485		---
Balance, December 31, 2010			286,824		16,169		---		98,951		42,324		444,268
	Adjustments / Reallocation of goodwill		---		---		---		---		---		---
Balance, December 31, 2011		$	286,824	$	16,169	$	---	$	98,951	$	42,324	$	444,268

Goodwill is not amortized but is evaluated for impairment on an annual basis at October 1st of each year or whenever events or changes in circumstances indicate that the carrying value may not be recoverable. No impairment was recorded in 2011.

At December 31, 2011 and 2010, Huntington's other intangible assets consisted of the following:

			Gross				Net
			Carrying		Accumulated		Carrying
(dollar amounts in thousands)			Amount		Amortization		Value

December 31, 2011
	Core deposit intangible	$	376,846	$	(263,410)	$	113,436
	Customer relationship		104,574		(43,052)		61,522
	Other		25,164		(24,820)		344
Total other intangible assets		$	506,584	$	(331,282)	$	175,302

December 31, 2010
	Core deposit intangible	$	376,846	$	(219,311)	$	157,535
	Customer relationship		104,574		(34,751)		69,823
	Other		25,164		(23,902)		1,262
Total other intangible assets		$	506,584	$	(277,964)	$	228,620

The estimated amortization expense of other intangible assets for the next five years is as follows:
		Amortization
(dollar amounts in thousands)		Expense

2012	$	46,075
2013		40,511
2014		35,858
2015		19,758
2016		6,606

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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