Huntington National Bank 2008 Annual Report Download - page 126

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The parent company has the ability to provide additional capital to the Bank to maintain the Bank’s risk-based capital ratios at
levels at which would be considered “well-capitalized.”
Huntington and its subsidiaries are also subject to various regulatory requirements that impose restrictions on cash, debt, and
dividends. The Bank is required to maintain cash reserves based on the level of certain of its deposits. This reserve requirement
may be met by holding cash in banking offices or on deposit at the Federal Reserve Bank. During 2008 and 2007, the average
balance of these deposits were $44.8 million and $39.7 million, respectively.
Under current Federal Reserve regulations, the Bank is limited as to the amount and type of loans it may make to the parent
company and non-bank subsidiaries. At December 31, 2008, the Bank could lend $497.7 million to a single affiliate, subject to the
qualifying collateral requirements defined in the regulations.
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, 2008, the bank could not have declared and paid additional dividends to the parent company
without regulatory approval.
23. PARENT COMPANY FINANCIAL STATEMENTS
The parent company condensed financial statements, which include transactions with subsidiaries, are as follows.
(in thousands) 2008 2007
Balance Sheets December 31,
ASSETS
Cash and cash equivalents
(1)
$1,122,056 $ 153,489
Due from The Huntington National Bank 532,746 144,526
Due from non-bank subsidiaries 338,675 332,517
Investment in The Huntington National Bank 5,274,261 5,607,872
Investment in non-bank subsidiaries 854,575 844,032
Accrued interest receivable and other assets 146,167 165,416
Total assets $8,268,480 $7,247,852
LIABILITIES AND SHAREHOLDERS’ EQUITY
Short-term borrowings $ 1,852 $ 2,578
Long-term borrowings 803,699 902,169
Dividends payable, accrued expenses, and other liabilities 235,788 393,965
Total liabilities 1,041,339 1,298,712
Shareholders’ equity 7,227,141 5,949,140
Total liabilities and shareholders’ equity
(2)
$8,268,480 $7,247,852
(1) Includes restricted cash of $125,000 at December 31, 2008.
(2) See page 85 for Huntington’s Consolidated Statements of Changes in Shareholders’ Equity.
124
Notes to Consolidated Financial Statements Huntington Bancshares Incorporated