Huntington National Bank 2003 Annual Report Download - page 65

Download and view the complete annual report

Please find page 65 of the 2003 Huntington National Bank annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 146

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146

MANAGEMENT’S DISCUSSION AND ANALYSIS
Table 15—Contractual Obligations
(in millions of dollars)
One
Year or
Less
1to3
Years
3to5
Years
More
Than
5 Years Total
Deposits without a stated maturity $10,155 $ — $ — $ — $10,155
Certificates of deposit and other time deposits 3,930 2,996 722 684 8,332
Short-term borrowings 1,452 — — — 1,452
Federal Home Loan Bank advances 3 100 900 270 1,273
Subordinated notes — — — 990 990
Other long-term debt 1,205 2,160 225 955 4,545
Operating lease obligations 33 58 52 193 336
Federal Funds Purchased and Repurchase Agreements Year Ended December 31,
(in thousands of dollars) 2003 2002 2001
Balance at year end $1,378,058 $2,058,523 $1,913,607
Weighted average interest rate at year end 0.73% 1.49% 2.24%
Maximum amount outstanding at month end during the year $2,438,892 $2,503,962 $3,094,647
Average amount outstanding during the year $1,707,059 $2,072,075 $2,258,860
Weighted average interest rate during the year 1.22% 1.98% 4.11%
Sources of wholesale funding include Federal Funds purchased, Eurodollar deposits, securities sold under repurchase agreements,
brokered and negotiable CDs, FHLB advances, and medium- and long-term debt. The Bank is a member of the FHLB of Cincinnati,
which provides funding to its members through advances. These advances carry maturities from one month to twenty years. At
December 31, 2003, the Bank had $1.3 billion of advances from the FHLB. All FHLB borrowings are collateralized with mortgage-
related assets such as residential mortgage loans and home equity loans. To provide further liquidity, the Bank has a $6.0 billion
domestic bank note program with $4.0 billion available for future issuance under this program as of December 31, 2003. In addition,
the Bank shares a $2.0 billion Euronote program with the parent company. This program is subject to annual renewal and had
approximately $1.3 billion available as of December 31, 2003. Both programs enable the Bank to issue notes with maturities from one
month to thirty years. Total wholesale deposits increased 35% in 2003. The $3.0 billion portfolio at December 31, 2003, had a weighted
average maturity of 1.8 years.
Other sources of liquidity include the sale or maturity of investment securities, the sale or securitization of loans, and the issuance of
common and preferred securities.
The asset side of the Bank’s balance sheet also provides significant liquidity. The relatively short maturity of the consumer loan and
lease portfolio and the C&I and CRE construction portfolios generate significant amounts of cash flow. As shown in Table 18, of the
$6.6 billion total C&I and CRE construction loans at December 31, 2003, approximately 46% matures within one year. Of the $6.2
billion total of automobile loans and leases and operating leases at December 31, 2003, approximately 16% also matures within one
year. In addition, during 2003, $2.1 billion in indirect automobile loans were sold, with such sales representing another source of
liquidity.
HUNTINGTON BANCSHARES INCORPORATED 63