Huntington National Bank 2005 Annual Report Download - page 66

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MANAGEMENT’S DISCUSSION AND ANALYSIS HUNTINGTON BANCSHARES INCORPORATED
Sources of Liquidity
Our primary source of funding is core deposits from retail and commercial customers. As of December 31, 2005, these core
deposits, of which 93% were provided by our Regional Banking line of business, funded 53% of total assets. The types and
sources of deposits by business segment at December 31, 2005, are detailed in Table 22. At December 31, 2005, total core deposits
represented 78% of total deposits, down slightly from 83% at the end of the prior year.
Core deposits are comprised of interest bearing and non-interest bearing demand deposits, savings and other domestic time
deposits, and certificates of deposit less than $100,000. Other domestic time deposits are comprised primarily of IRA deposits.
Brokered time deposits represent funds obtained by or through a deposit broker. At December 31, 2005, $2.1 billion of brokered
deposits were issued in denominations of $100,000 or more and, in turn, participated by the broker to their customers in
denominations of $100,000 or less. Foreign deposits are interest bearing and all mature in one year or less.
Domestic time deposits of $100,000 or more and brokered deposits and negotiable CDs totaled $4.5 billion at the end of 2005
and $3.2 billion at the end of 2004. The contractual maturities of the deposits at December 31, 2005 were as follows: $1.4 billion
in three months or less, $0.3 billion in three months through six months, $0.5 billion after six months through twelve months,
and $2.3 billion after twelve months.
Demand deposit overdrafts that have been reclassified as loan balances were $11.9 million and $12.8 million at December 31,
2005 and 2004, respectively.
Sources of wholesale funding include domestic time deposits of $100,000 or more, brokered deposits and negotiable CDs, deposits
in foreign offices, short-term borrowings, Federal Home Loan Bank (FHLB) advances, other long-term debt, and subordinated
notes. At December 31, 2005, total wholesale funding was $11.5 billion, an increase of $0.4 billion, or 3%, from December 31,
2004. The $11.5 billion portfolio at December 31, 2005, had a weighted average maturity of 3.5 years. We are a member of the
FHLB of Cincinnati, which provides funding to members through advances. These advances carry maturities from one month to
20 years. At December 31, 2005, our wholesale funding included $1.2 billion of advances from the FHLB. All FHLB borrowings
are collateralized with mortgage-related assets such as residential mortgage loans and home equity loans. To provide further
liquidity, we have a $6.0 billion domestic bank note program with $3.0 billion available for future issuance under this program as
of December 31, 2005. This program enables us to issue notes with maturities from one month to 30 years.
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