Huntington National Bank 2006 Annual Report Download - page 124

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS HUNTINGTON BANCSHARES INCORPORATED
Dividends from the Bank are one of the major sources of funds for Huntington. These funds aid the parent company in the
payment of dividends to shareholders, expenses, and other obligations. Payment of dividends to the parent company is subject to
various legal and regulatory limitations. Regulatory approval is required prior to the declaration of any dividends in excess of
available retained earnings. The amount of dividends that may be declared without regulatory approval is further limited to the
sum of net income for the current year and retained net income for the preceding two years, less any required transfers to
surplus or common stock. At December 31, 2006, the bank could have declared and paid $0.7 million of additional dividends to
the parent company without regulatory approval.
26. PARENT COMPANY FINANCIAL STATEMENTS
The parent company condensed financial statements, which include transactions with subsidiaries, are as follows.
Balance Sheets December 31,
(in thousands of dollars) 2006 2005
ASSETS
Cash and cash equivalents $ 412,724 $ 227,115
Due from The Huntington National Bank 31,481 250,771
Due from non-bank subsidiaries 277,245 205,208
Investment in The Huntington National Bank 2,035,175 1,660,905
Investment in non-bank subsidiaries 725,875 584,259
Accrued interest receivable and other assets 45,592 128,303
Total assets $3,528,092 $3,056,561
LIABILITIES AND SHAREHOLDERS’ EQUITY
Short-term borrowings $ 3,252 $ 3,034
Long-term borrowings 329,898 309,279
Dividends payable, accrued expenses, and other liabilities 180,616 186,747
Total liabilities 513,766 499,060
Shareholders’ equity 3,014,326 2,557,501
Total liabilities and shareholders’ equity $3,528,092 $3,056,561
Statements of Income Year Ended December 31,
(in thousands of dollars) 2006 2005 2004
Income
Dividends from
The Huntington National Bank $ 575,000 $180,000 $400,000
Non-bank subsidiaries 47,476 3,800 8,202
Interest from
The Huntington National Bank 13,167 35,253 13,417
Non-bank subsidiaries 10,880 8,770 7,638
Management fees from subsidiaries 9,539 30,539 34,603
Other 23 406 (810)
Total income 656,085 258,768 463,050
Expense
Personnel costs 31,427 25,060 32,227
Interest on borrowings 17,856 22,772 4,317
Other 20,040 24,741 36,738
Total expense 69,323 72,573 73,282
Income before income taxes and equity in undistributed net income of subsidiaries 586,762 186,195 389,768
Income taxes (20,922) (2,499) (4,223)
Income before equity in undistributed net income of subsidiaries 607,684 188,694 393,991
Increase (decrease) in undistributed net income of:
The Huntington National Bank (142,672) 208,061 (9,073)
Non-bank subsidiaries (3,791) 15,336 14,007
Net income $ 461,221 $412,091 $398,925
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