Huntington National Bank 2005 Annual Report Download - page 120

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NOTES TOCONSOLIDATED FINANCIAL STATEMENTS HUNTINGTON BANCSHARES INCORPORATED
11. FEDERAL HOME LOAN BANK ADVANCES
Huntington’s long-term advances from the Federal Home Loan Bank had weighted average interest rates of 4.37% and 2.32% at
December 31, 2005 and 2004, respectively. These advances, which predominantly had variable interest rates, were collateralized by
qualifying real estate loans. As of December 31, 2005 and 2004, Huntington’s maximum borrowing capacity was $1.7 billion and
$1.5 billion, respectively. The advances outstanding at December 31, 2005 of $1.2 billion mature as follows: $0.2 billion in 2006;
$0.6 billion in 2007; $0.4 billion in 2008; and less than $0.1 billion thereafter. The terms of advances include 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, 2005, Huntington was in compliance with all such covenants.
12. SUBORDINATED NOTES
At December 31, Huntington’s subordinated notes consisted of the following:
At December 31,
(in thousands of dollars) 2005 2004
Parent company:
4.94% junior subordinated debentures due 2027(1) $ 206,186 $ 206,186
5.12% junior subordinated debentures due 2028(2) 103,093 103,093
The Huntington National Bank:
8.00% subordinated notes due 2010 158,620 160,692
4.90% subordinated notes due 2014 193,361 199,136
6.60% subordinated notes due 2018 214,277 219,505
5.375% subordinated notes due 2019 147,834 151,181
Total subordinated notes $ 1,023,371 $1,039,793
(1) Variable effective rate at December 31, 2005, based on three month LIBOR + 0.70.
(2) Variable effective rate at December 31, 2005, based on three month LIBOR + 0.625.
The weighted-average interest rate for subordinated notes was 5.84% and 5.16% at December 31, 2005 and 2004, respectively.
Amounts above are reported net of unamortized discounts and include values related to hedging with derivative financial
instruments. The derivative instruments, principally interest rate swaps, are used to match the funding rates on certain assets by
hedging the cash flow variability associated with certain variable-rate debt by converting the debt to fixed-rate and hedging the
fair values of certain fixed-rate debt by converting the debt to a variable rate. See Note 21 for more information regarding such
financial instruments. All principal is due upon maturity of the note as described in the table above.
13. OTHER LONG-TERM DEBT
At December 31, Huntington’s other long-term debt consisted of the following:
At December 31,
(in thousands of dollars) 2005 2004
The Huntington National Bank $ 1,576,033 $3,006,004
Parent company (matured in December 2005) —100,000
4.69% Securitization trust note payable due 2012(1) 792,386 860,000
7.88% Class C preferred securities of REIT subsidiary, no maturity 50,000 50,000
Total other long-term debt $ 2,418,419 $4,016,004
(1) Variable effective rate at December 31, 2005, based on one month LIBOR + 0.33.
Amounts above include values related to hedging with derivative financial instruments. The derivative instruments, principally
interest rate swaps, are used to match the funding rates on certain assets by hedging the cash flow variability associated with
certain variable-rate debt by converting the debt to fixed-rate and hedging the fair values of certain fixed-rate debt by converting
the debt to a variable rate. See Note 21 for more information regarding such financial instruments.
The weighted-average interest rate for other long-term debt was 4.34% and 2.86% at December 31, 2005 and 2004, respectively.
At December 31, 2005, Huntington’s other long-term debt included $50 million of secured borrowings, which had a variable rate
of 4.13% based, in part, on three-month LIBOR. The secured borrowings matured in January 2006.
The securitization trust note payable is collateralized by $855 million in automobile loans held in the automobile trust. The terms
of the other long-term debt obligations contain various restrictive covenants including limitations on the acquisition of additional
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