Huntington National Bank 2011 Annual Report Download - page 219

statutory recording fees. The complaint also seeks damages, attorneys’ fees and costs. Although Huntington has
not been named as a defendant in the other cases, similar litigation has been initiated against MERSCORP, Inc.
and other financial institutions in other jurisdictions throughout the country.
Commitments Under Capital and Operating Lease Obligations
At December 31, 2011, Huntington and its subsidiaries were obligated under noncancelable leases for land,
buildings, and equipment. Many of these leases contain renewal options and certain leases provide options to
purchase the leased property during or at the expiration of the lease period at specified prices. Some leases
contain escalation clauses calling for rentals to be adjusted for increased real estate taxes and other operating
expenses or proportionately adjusted for increases in the consumer or other price indices.
The future minimum rental payments required under operating leases that have initial or remaining
noncancelable lease terms in excess of one year as of December 31, 2011, were $44.5 million in 2012, $42.6
million in 2013, $40.4 million in 2014, $38.6 million in 2015, $35.1 million in 2016, and $250.2 million
thereafter. At December 31, 2011, total minimum lease payments have not been reduced by minimum sublease
rentals of $16.3 million due in the future under noncancelable subleases. At December 31, 2011, the future
minimum sublease rental payments that Huntington expects to receive are $5.4 million in 2012; $4.5 million in
2013; $3.4 million in 2014; $2.0 million in 2015; $0.6 million in 2016; and $0.4 million thereafter. The rental
expense for all operating leases was $53.5 million, $50.3 million, and $49.8 million for 2011, 2010, and 2009,
respectively. Huntington had no material obligations under capital leases.
23. OTHER REGULATORY MATTERS
Huntington and its bank subsidiary, The Huntington National Bank (the Bank), are subject to various
regulatory capital requirements administered by federal and state banking agencies. These requirements involve
qualitative judgments and quantitative measures of assets, liabilities, capital amounts, and certain off-balance
sheet items as calculated under regulatory accounting practices. Failure to meet minimum capital requirements
can initiate certain actions by regulators that, if undertaken, could have a material adverse effect on Huntington’s
and the Bank’s financial statements. Applicable capital adequacy guidelines require minimum ratios of 4.00% for
Tier 1 risk-based Capital, 8.00% for total risk-based Capital, and 4.00% for Tier 1 leverage capital. To be
considered well-capitalized under the regulatory framework for prompt corrective action, the ratios must be at
least 6.00%, 10.00%, and 5.00%, respectively.
As of December 31, 2011, Huntington and the Bank met all capital adequacy requirements and had
regulatory capital ratios in excess of the levels established for well-capitalized institutions. The period-end
capital amounts and capital ratios of Huntington and the Bank are as follows:
Tier 1 risk-based capital Total risk-based capital Tier 1 leverage capital
2011 2010 2011 2010 2011 2010
(dollar amounts in millions)
Huntington Bancshares Incorporated
Amount .................................. $5,557 $5,022 $6,778 $6,285 $5,557 $5,022
Ratio .................................... 12.11% 11.55% 14.77% 14.46% 10.28% 9.41%
The Huntington National Bank
Amount .................................. $4,245 $3,683 $5,753 $5,549 $4,245 $3,683
Ratio .................................... 9.30% 8.51% 12.60% 12.82% 7.89% 6.97%
Tier 1 risk-based capital consists of total equity plus qualifying capital securities and minority interest,
excluding unrealized gains and losses accumulated in OCI, and non-qualifying intangible and servicing assets.
Total risk-based capital is the sum of Tier 1 risk-based capital and qualifying subordinated notes and allowable
allowances for credit losses (limited to 1.25% of total risk-weighted assets). Tier 1 leverage capital is equal to
Tier 1 capital. Both Tier 1 capital and total risk-based capital ratios are derived by dividing the respective capital
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