Huntington National Bank 2011 Annual Report Download - page 98

information to know what the impacts will be to us, we believe that our current period-end capital ratios are well
positioned. In December 2011, the Federal Reserve issued a proposal to implement Sections 165 and 166 of the
Dodd-Frank Act that would enhance prudential standards on SIFIs. The proposal uses or enhances requirements
already imposed, or to be imposed, on SIFIs.
Regulatory Capital
Regulatory capital ratios are the primary metrics used by regulators in assessing the safety and soundness of
banks. We intend to maintain both our and the Bank’s risk-based capital ratios at levels at which both would be
considered well-capitalized by regulators.
The Bank is primarily supervised and regulated by the OCC, which establishes regulatory capital guidelines
for banks similar to those established for bank holding companies by the Federal Reserve Board.
Regulatory capital primarily consists of Tier 1 risk-based capital and Tier 2 risk-based capital. The sum of
Tier 1 risk-based capital and Tier 2 risk-based capital equals our total risk-based capital.
The following table presents certain regulatory capital data at both the consolidated and Bank levels for the
past five years:
Table 37 — Selected Regulatory Capital Data
At December 31,
2011 2010 2009 2008 2007
(dollar amounts in millions)
Total risk-weighted assets ............... Consolidated $45,891 $43,471 $43,248 $46,994 $46,044
Bank 45,651 43,281 43,149 46,477 45,731
Tier 1 risk-based capital ................ Consolidated 5,557 5,022 5,201 5,036 3,460
Bank 4,245 3,683 2,873 2,995 3,037
Tier 2 risk-based capital ................ Consolidated 1,221 1,263 1,030 1,499 1,535
Bank 1,508 1,866 1,907 1,983 1,613
Total risk-based capital ................. Consolidated 6,778 6,285 6,231 6,535 4,995
Bank 5,753 5,549 4,780 4,978 4,650
Tier 1 leverage ratio ................... Consolidated 10.28% 9.41% 10.09% 9.82% 6.77%
Bank 7.89 6.97 5.59 5.99 5.99
Tier 1 risk-based capital ratio ............ Consolidated 12.11 11.55 12.03 10.72 7.51
Bank 9.30 8.51 6.66 6.44 6.64
Total risk-based capital ratio ............. Consolidated 14.77 14.46 14.41 13.91 10.85
Bank 12.60 12.82 11.08 10.71 10.17
The increase in our consolidated Tier 1 risk-based capital ratios compared with December 31, 2010,
primarily reflected 2011 earnings and a reduction in the disallowed deferred tax asset, partially offset by an
increase in risk-weighted assets and the impacts related to the payments of dividends and the repurchase of the
TARP warrants.
At December 31, 2011, our Tier 1 and total risk-based capital in excess of the minimum levels required to
be considered well-capitalized were $2.8 billion and $2.2 billion, respectively. The Bank had Tier 1 and total
risk-based capital in excess of the minimum levels required to be considered well-capitalized of $1.5 billion and
$1.2 billion, respectively, at December 31, 2011.
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