Huntington National Bank 2008 Annual Report Download - page 105

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The terms of the other long-term debt obligations contain 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, 2008,
Huntington was in compliance with all such covenants.
In the 2009 first quarter, the Bank issued $600 million of guaranteed debt through the Temporary Liquidity Guarantee Program
(TLGP) with the FDIC. Huntington anticipates using the resultant proceeds to satisfy all maturing unsecured debt obligations in 2009.
LOAN SECURITIZATIONS
Consolidated loan securitizations at December 31, 2008, consist of auto loan and lease securitization trusts formed in 2008, 2006
and 2000. Huntington has determined that the trusts are not qualified special purpose entities and, therefore, are variable interest
entities based upon equity guidelines established in FIN 46R. Huntington owns 100% of the trusts and is the primary beneficiary
of the VIEs, therefore, the trusts are consolidated. The carrying amount and classification of the trusts’ assets and liabilities
included in the consolidated balance sheet are as follows:
(in thousands) 2008 Trust 2006 Trust 2000 Trust Total
December 31, 2008
Assets
Cash $ 31,758 $205,179 $24,850 $ 261,787
Loans and leases 824,218 1,230,791 100,149 2,155,158
Allowance for loan and lease losses (8,319) (12,368) (1,011) (21,698)
Net loans and leases 815,899 1,218,423 99,138 2,133,460
Accrued income and other assets 5,998 6,853 433 13,284
Total assets $853,655 $1,430,455 $124,421 $2,408,531
Liabilities
Other long-term debt $721,555 $1,050,895 $4,005 $1,776,455
Accrued interest and other liabilities 1,253 11,193 — 12,446
Total liabilities $722,808 $1,062,088 $4,005 $1,788,901
The auto loans and leases are designated to repay the securitized note. Huntington services the loans and leases and uses the
proceeds from principal and interest payments to pay the securitized notes during the amortization period. Huntington has not
provided financial or other support that it was not previously contractually required.
13. SUBORDINATED NOTES
At December 31, Huntington’s subordinated notes consisted of the following:
(in thousands) 2008 2007
At December 31,
Parent company:
6.11% subordinated notes due 2008 $—$ 50,020
6.21% subordinated notes due 2013 48,391 48,070
4.12% junior subordinated debentures due 2027
(1)
158,366 184,836
2.62% junior subordinated debentures due 2028
(2)
71,093 93,093
8.54% junior subordinated debentures due 2029 23,347 23,389
4.20% junior subordinated debentures due 2030 65,910 66,848
7.71% junior subordinated debentures due 2033
(3)
30,929 31,411
8.07% junior subordinated debentures due 2033
(4)
6,186 6,224
2.43% junior subordinated debentures due 2036
(5)
78,136 78,465
4.84% junior subordinated debentures due 2036
(5)
78,137 78,466
6.69% junior subordinated debentures due 2067
(6)
249,408 249,356
The Huntington National Bank:
8.18% subordinated notes due 2010 143,261 145,167
6.21% subordinated notes due 2012 64,816 64,773
5.00% subordinated notes due 2014 221,727 198,076
5.59% subordinated notes due 2016 284,048 253,365
6.67% subordinated notes due 2018 244,769 213,793
5.45% subordinated notes due 2019 181,573 148,924
Total subordinated notes $1,950,097 $1,934,276
(1) Variable effective rate at December 31, 2008, based on three month LIBOR + 0.70.
(2) Variable effective rate at December 31, 2008, based on three month LIBOR + 0.625.
(3) Variable effective rate at December 31, 2008, based on three month LIBOR + 3.25.
103
Notes to Consolidated Financial Statements Huntington Bancshares Incorporated