Huntington National Bank 2011 Annual Report Download - page 220

amounts by net risk-weighted assets, which are calculated as prescribed by regulatory agencies. The Tier 1
leverage capital ratio is calculated by dividing the Tier 1 capital amount by average total assets for the fourth
quarter of 2011 and 2010, less non-qualifying intangibles and other adjustments.
Huntington has the ability to provide additional capital to the Bank to maintain the Bank’s risk-based capital
ratios at levels at which would be considered well-capitalized.
Huntington and its subsidiaries are also subject to various regulatory requirements that impose restrictions
on cash, debt, and dividends. The Bank is required to maintain cash reserves based on the level of certain of its
deposits. This reserve requirement may be met by holding cash in banking offices or on deposit at the Federal
Reserve Bank. During 2011 and 2010, the average balances of these deposits were $0.8 billion and $0.8 billion,
respectively.
Under current Federal Reserve regulations, the Bank is limited as to the amount and type of loans it may
make to the parent company and nonbank subsidiaries. At December 31, 2011, the Bank could lend $575.3
million to a single affiliate, subject to the qualifying collateral requirements defined in the regulations.
Dividends from the Bank are one of the major sources of funds for the Company. These funds aid the
Company in the payment of dividends to shareholders, expenses, and other obligations. Payment of dividends to
the parent company is subject to various legal and regulatory limitations. Regulatory approval is required prior to
the declaration of any dividends in excess of undivided profits or if the total of all dividends declared in a
calendar year would exceed the total of net income for the current year combined with retained net income for
the preceding two years, less any required transfers to surplus or common stock. At December 31, 2011, the
Bank could not have declared and paid additional dividends to the Company without regulatory approval.
24. PARENT COMPANY FINANCIAL STATEMENTS
The parent company condensed financial statements, which include transactions with subsidiaries, are as
follows.
December 31,
Balance Sheets 2011 2010
(dollar amounts in thousands)
Assets
Cash and cash equivalents(1) ................................... $ 917,954 $ 615,167
Due from The Huntington National Bank(2) ....................... 616,565 954,565
Due from non-bank subsidiaries ................................. 188,732 225,560
Investment in The Huntington National Bank ...................... 4,073,722 3,515,597
Investment in non-bank subsidiaries .............................. 759,532 790,248
Accrued interest receivable and other assets ........................ 139,076 110,181
Total assets ................................................. $6,695,581 $6,211,318
Liabilities and shareholders’ equity
Short-term borrowings ........................................ $—$ 100
Long-term borrowings ......................................... 899,779 937,434
Dividends payable, accrued expenses, and other liabilities ............ 377,702 293,242
Total liabilities .............................................. 1,277,481 1,230,776
Shareholders’ equity(3) ........................................ 5,418,100 4,980,542
Total liabilities and shareholders’ equity ........................ $6,695,581 $6,211,318
(1) Includes restricted cash of $125,000 at December 31, 2011 and December 31, 2010.
(2) Related to subordinated notes described in Note 12.
(3) See Huntington’s Consolidated Statements of Changes in Shareholders’ Equity.
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