Huntington National Bank 2012 Annual Report Download - page 79

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The following table presents certain regulatory capital data at both the consolidated and Bank levels for the past five years:
Table 36 - Regulatory Capital Data
At December 31,
(dollar amounts in millions) 2012 2011 2010 2009 2008
Total risk-weighted assets Consolidated $ 47,773 $ 45,891 $ 43,471 $ 42,816 $ 46,994
Bank 47,676 45,651 43,281 43,149 46,477
Tier 1 risk-based capital Consolidated 5,741 5,557 5,022 5,201 5,036
Bank 5,003 4,245 3,683 2,873 2,995
Tier 2 risk-based capital Consolidated 1,187 1,221 1,263 1,030 1,499
Bank 1,091 1,508 1,866 1,907 1,983
Total risk-based capital Consolidated 6,928 6,778 6,285 6,231 6,535
Bank 6,094 5,753 5,549 4,780 4,978
Tier 1 leverage ratio Consolidated 10.36 % 10.28 % 9.41 % 10.09 % 9.82 %
Bank 9.05 7.89 6.97 5.59 5.99
Tier 1 risk-based capital ratio Consolidated 12.02 12.11 11.55 12.15 10.72
Bank 10.49 9.30 8.51 6.66 6.44
Total risk-based capital ratio Consolidated 14.50 14.77 14.46 14.55 13.91
Bank 12.78 12.60 12.82 11.08 10.71
The decrease in our consolidated Tier 1 and Total risk-based capital ratios compared with December 31, 2011, primarily
reflected an increase in risk-weighted assets of $1.9 billion, the redemption of $230.3 million in trust preferred securities, the
repurchase of 23.3 million common shares, and the impacts related to the payments of dividends, partially offset by an increase in
retained earnings and a reduction in the disallowed deferred tax asset.
Shareholders’ Equity
We generate shareholders’ equity primarily through earnings, net of dividends. Other potential sources of shareholders’ equity
include issuances of common and preferred stock. Our objective is to maintain capital at an amount commensurate with our risk
profile and risk tolerance objectives, to meet both regulatory and market expectations, and to provide the flexibility needed for future
growth and business opportunities. Shareholders’ equity totaled $5.8 billion at December 31, 2012, representing a $0.4 billion, or 7%,
increase compared with December 31, 2011, primarily due to an increase in retained earnings.
Dividends
We consider disciplined capital management as a key objective, with dividends representing one component. Our strong capital
ratios and expectations for continued earnings growth positions us to continue to actively explore additional capital management
opportunities.
On January 17, 2013, our board of directors declared a quarterly cash dividend of $0.04 per common share, payable in April
2013. Cash dividends of $0.04 per common share were also declared on January 19, 2012, April 18, 2012, July 19, 2012, and October
18, 2012. Our 2012 capital plan to the FRB (see Capital Planning section above) included the continuation of our current common
dividend through the 2013 first quarter.
On January 17, 2013, our board of directors also declared a quarterly cash dividend on our 8.50% Series A Non-Cumulative
Perpetual Convertible Preferred Stock of $21.25 per share. The dividend is payable in April 2013. Cash dividends of $21.25 per
share were also declared on January 19, 2012, April 28, 2012, July 19, 2012, and October 18, 2012.
On January 17, 2013, our board of directors also declared a quarterly cash dividend on our Floating Rate Series B Non-
Cumulative Perpetual Preferred Stock of $7.51 per share. The dividend is payable in April 2013. Cash dividends of $7.89 per share,
$7.92 per share, $8.18 per share, and $7.60 per share were also declared on January 19, 2012, April 28, 2012, July 19, 2012, and
October 18, 2012, respectively.