Huntington National Bank 2012 Annual Report Download - page 191

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Unconsolidated VIEs
The following tables provide a summary of assets and liabilities included in Huntington’s Consolidated Financial Statements, as
well as the maximum exposure to losses associated with interests related to unconsolidated VIEs for which Huntington holds an
interest, but is not the primary beneficiary to the VIE at December 31, 2012 and 2011.
December 31, 2012
(dollar amounts in thousands) Total Assets Total Liabilities Maximum Exposure to Loss
2012-1 Automobile Trust $ 12,649 $ ---$ 12,649
2012-2 Automobile Trust 13,616 --- 13,616
2011 Automobile Trust 7,076 --- 7,076
Tower Hill Securities, Inc. 87,075 65,000 87,075
Trust Preferred Securities 13,764 312,894 ---
Low Income Housing Tax Credit Partnerships 391,878 152,047 391,878
Total $ 526,058 $ 529,941 $ 512,294
December 31, 2011
(dollar amounts in thousands) Total Assets Total Liabilities Maximum Exposure to Loss
2011 Automobile Trust $ 13,377 $ ---$ 13,377
Tower Hill Securities, Inc. $ 90,514 $ 65,000 $ 90,514
Trust Preferred Securities 17,364 554,496 ---
Low Income Housing Tax Credit Partnerships 376,098 157,754 376,098
Total $ 497,353 $ 777,250 $ 479,989
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2012-1 AUTOMOBILE TRUST, 2012-2 AUTOMOBILE TRUST, and 2011 AUTOMOBILE TRUST
During the 2012 fourth quarter, 2012 first quarter, and 2011 third quarter, we transferred automobile loans totaling $1.0 billion,
$1.3 billion, and $1.0 billion, respectively to trusts in separate securitization transactions. The securitizations and the resulting sale of
all underlying securities qualified for sale accounting. Huntington has concluded that it is not the primary beneficiary of these trusts
because it has neither the obligation to absorb losses of the entities that could potentially be significant to the VIEs nor the right to
receive benefits from the entities that could potentially be significant to the VIEs. Huntington is not required and does not currently
intend to provide any additional financial support to the trusts. Investors and creditors only have recourse to the assets held by the
trusts. The interest Huntington holds in the VIEs relates to servicing rights which are included within accrued income and other assets
of Huntington’s Consolidated Balance Sheets. The maximum exposure to loss is equal to the carrying value of the servicing asset.
TOWER HILL SECURITIES, INC.
In 2010, we transferred 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 to Tower Hill Securities, Inc. 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 was recorded as a secured financing. Interests
held by Huntington consist of municipal securities within available for sale and other securities and Series B preferred securities
within other long term debt of Huntington’s Consolidated Balance Sheets. The maximum exposure to loss is equal to the carrying
value of the municipal securities.