Huntington National Bank 2012 Annual Report Download - page 159

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10. FEDERAL HOME LOAN BANK ADVANCES
Huntington’s advances from the Federal Home Loan Bank had weighted average interest rates of 0.18% and 0.19% at December
31, 2012 and 2011, respectively. These advances, which predominantly had variable interest rates, were collateralized by qualifying
real estate loans. As of December 31, 2012 and 2011, Huntington’s maximum borrowing capacity was $4.0 billion and $3.5 billion,
respectively. The advances outstanding at December 31, 2012 of $1.0 billion mature as follows: $1.0 billion in 2013; and less than
$0.1 billion in 2017 and thereafter.
11. OTHER LONG-TERM DEBT
Huntington’s other long-term debt consisted of the following:
At December 31,
(dollar amounts in thousands) 2012 2011
5.04% The Huntington National Bank medium-term notes due through 2018 $ 41,557 $ 641,443
0.88% Securitization trust notes payable due through 2018 (1) 2,086 333,644
5.54% Securitization trust note payable due 2014 --- 123,039
5.64% Securitization trust note payable due 2013 --- 18,230
2.56% Class B preferred securities of subsidiary, no maturity (2) 65,000 65,000
7.88% Class C preferred securities of subsidiary, no maturity 50,000 50,000
Other 141 161
Total other long-term debt $ 158,784 $ 1,231,517
(1) Variable effective rate at December 31, 2012, based on one month LIBOR + 0.67 or 0.88%.
(2) Variable effective rate at December 31, 2012, based on one month LIBOR + 2.35 or 2.56%.
Amounts above are net of unamortized discounts and adjustments related to hedging with derivative financial instruments. The
derivative instruments, principally interest rate swaps, are used to hedge the fair values of certain fixed-rate debt by converting the
debt to a variable rate. See Note 20 for more information regarding such financial instruments.
In 2010, approximately $92.1 million of municipal securities, $86.0 million in Huntington Preferred Capital, Inc. (Real Estate
Investment Trust) Class E Preferred Stock and cash of $6.1 million were transferred to Tower Hill Securities, Inc., an unconsolidated
entity, in exchange for $184.1 million of Common and Preferred Stock of Tower Hill Securities, Inc. The municipal securities and the
REIT Shares will be used to satisfy $65.0 million of mandatorily redeemable securities issued by Tower Hill Securities, Inc. and are
not available to satisfy the general debts and obligations of Huntington or any consolidated affiliates. The transfer did not meet the
sale requirement of ASC 860 and therefore has been reflected as a secured financing on the Consolidated Financial Statements of
Huntington.
Other long-term debt maturities for the next five years and thereafter are as follows:
Other long-term
(dollar amounts in thousands) debt maturities
2013 $ 141
2014 ---
2015 ---
2016 ---
2017 ---
and thereafte
r
152,086
These maturities are based upon the par values of the long-term debt.
The terms of the other long-term debt obligations contain various restrictive covenants including limitations on the acquisition of
additional debt in excess of specified levels, dividend payments, and the disposition of subsidiaries. As of December 31, 2012,
Huntington was in compliance with all such covenants.