Quarterly report pursuant to Section 13 or 15(d)

Held to Maturity Securities

Held to Maturity Securities
9 Months Ended
Sep. 30, 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 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.

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 September 30, 2011. There were no securities classified as held-to-maturity at December 31, 2010 or September 30, 2010.

        September 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   658,250     682,897  
  Total Federal agencies: mortgage-backed securities 658,250     682,897  
Total U.S. Government backed agencies   658,250     682,897  
Total held-to-maturity securities $ 658,250   $ 682,897  

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


      Amortized     Gross     Gross     Fair
(dollar amounts in thousands)   Cost     Gains     Losses     Value
September 30, 2011                      
Federal Agencies:                      
  Mortgage-backed securities $ 658,250   $ 24,647   $ ---   $ 682,897
Total U.S. Government                      
  backed securities   658,250     24,647     ---     682,897
Total held-to-maturity securities $ 658,250   $ 24,647   $ ---   $ 682,897