Huntington National Bank 2009 Annual Report Download - page 101

monthl
y
for the Bank and the parent compan
y
, as well as its subsidiaries. In addition, liquidit
y
workin
gg
roup
s
meet re
g
ularl
y
to identif
y
and monitor liquidit
y
positions, provide polic
yg
uidance, review fundin
g
strate
g
ies,
and oversee adherence to, and the maintenance of, the contin
g
enc
y
fundin
g
plan(s). A Contin
g
enc
y
Fundin
g
Workin
g
Group monitors dail
y
cash flow trends, branch activit
y
, unfunded commitments, si
g
nificant transac-
t
i
ons, an
d
parent compan
y
su
b
s
idi
ar
y
sources an
d
uses o
ff
un
d
s
i
nor
d
er to
id
ent
ify
areas o
f
concern, an
d
establish specific fundin
g
strate
g
ies. This
g
roup works closel
y
with the Risk Mana
g
ement Committee and th
e
HBI Communication Team in order to identif
y
issues that ma
y
require a more proactive communication pla
n
to s
h
are
h
o
ld
ers, emp
l
o
y
ees, an
d
customers re
g
ar
di
n
g
spec
ifi
c events or
i
ssues t
h
at cou
ld h
ave an
i
mpact on
our
li
qu
idi
t
y
pos
i
t
i
on.
In t
h
e norma
l
course o
fb
us
i
ness,
i
nor
d
er to
b
etter mana
g
e
li
qu
idi
t
y
r
i
s
k
, we per
f
orm stress tests to
d
eterm
i
ne t
h
ee
ff
ect t
h
at a potent
i
a
ld
own
g
ra
d
e
i
n our cre
di
t rat
i
n
g
sorot
h
er mar
k
et
di
srupt
i
ons cou
ld h
ave on
liquidit
y
over various time periods. These credit ratin
g
s, which are presented in Table 47, have a direct impac
t
on our cost of funds and abilit
y
to raise funds under normal, as well as adverse, circumstances. The results o
f
t
h
ese stress tests
i
n
di
cate t
h
at su
ffi
c
i
ent sources o
ff
un
d
s are ava
il
a
bl
e to meet our
fi
nanc
i
a
l
o
blig
at
i
ons an
d
f
un
d
our operat
i
ons
f
or a 12-mont
h
per
i
o
d
.T
h
e stress test scenar
i
os
i
nc
l
u
d
e test
i
n
g
to
d
eterm
i
ne t
h
e
i
mpact o
f
an interruption to our access to the national markets for fundin
g
,si
g
nificant run-off in core deposits an
d
li
qu
idi
t
y
tr
igg
ers
i
n
h
erent
i
not
h
er
fi
nanc
i
a
l
a
g
reements. To compensate
f
or t
h
ee
ff
ect o
f
t
h
ese assume
d
li
qu
idi
t
y
pressures, we cons
id
er a
l
ternat
i
ve sources o
fli
qu
idi
t
y
over
diff
erent t
i
me per
i
o
d
s to pro
j
ect
h
ow
fundin
g
needs would be mana
g
ed. The specific alternatives for enhancin
g
liquidit
y
include
g
eneratin
g
client
deposits, securitizin
g
or sellin
g
loans, sellin
g
or maturin
g
of securities, and extendin
g
the level or maturit
y
o
f
w
h
o
l
esa
l
e
b
orrow
i
n
g
s.
Most cre
di
t mar
k
ets
i
nw
hi
c
h
we part
i
c
i
pate an
d
re
ly
upon as sources o
ff
un
di
n
gh
ave
b
een s
ig
n
ifi
cant
ly
di
srupte
d
an
d highly
vo
l
at
il
es
i
nce m
id
-2007. Re
fl
ect
i
n
g
concern a
b
out t
h
e sta
bili
t
y
o
f
t
h
e
fi
nanc
i
a
l
mar
k
et
s
g
enera
lly
, man
yl
en
d
ers re
d
uce
d
,an
di
n some cases, cease
d
unsecure
df
un
di
n
g
to
b
orrowers,
i
nc
l
u
di
n
g
ot
h
er
financial institutions. Since that time, as a means of maintainin
g
adequate liquidit
y
, we, like man
y
othe
r
fi
nanc
i
a
li
nst
i
tut
i
ons,
h
ave re
li
e
d
more
h
eav
ily
on t
h
e
li
qu
idi
t
y
an
d
sta
bili
t
y
present
i
nt
h
e secure
d
cre
di
t
mar
k
ets s
i
nce access to unsecure
d
term
d
e
b
t
h
as
b
een restr
i
cte
d
.T
h
rou
gh
out t
hi
s per
i
o
d
, we cont
i
nue
d
t
o
extend maturities ensurin
g
that we maintained adequate liquidit
y
in the event the crisis became prolon
g
ed. I
n
a
ddi
t
i
on to mana
gi
n
g
our matur
i
t
i
es, we stren
g
t
h
ene
d
our overa
ll li
qu
idi
t
y
pos
i
t
i
on
by
s
ig
n
ifi
cant
ly
re
d
uc
i
n
g
our noncore
f
un
d
san
d
w
h
o
l
esa
l
e
b
orrow
i
n
g
s, an
di
ncreas
i
n
g
our overa
ll l
eve
l
o
fli
qu
id
assets. S
hif
t
i
n
gf
ro
m
t
h
e net purc
h
as
i
n
g
o
f
overn
igh
t
f
e
d
era
lf
un
d
s to an excess reserve pos
i
t
i
on at t
h
een
d
o
f
t
h
e 2009
fi
rst quarter,
as well as si
g
nificantl
y
increasin
g
the level of free securities, has si
g
nificantl
y
improved our on-hand liquidit
y.
However, we are part o
f
a
fi
nanc
i
a
l
s
y
stem, an
d
as
y
stem
i
c
l
ac
k
o
f
ava
il
a
bl
e cre
di
t, a
l
ac
k
o
f
con
fid
ence
i
nt
he
fi
nanc
i
a
l
sector, an
di
ncrease
d
vo
l
at
ili
t
yi
nt
h
e
fi
nanc
i
a
l
mar
k
ets cou
ld
mater
i
a
lly
an
d
a
d
verse
ly
a
ff
ect ou
r
liquidit
y
position
.
B
an
k
Li
q
ui
d
it
y
an
d
Sources o
f
Li
q
ui
d
it
y
Our primar
y
sources of fundin
g
for the Bank are retail and commercial core deposits. As of December 31,
2
009, t
h
ese core
d
epos
i
ts, o
f
w
hi
c
h
our Reta
il
an
d
Bus
i
ness Ban
ki
n
gb
us
i
ness se
g
ment prov
id
e
d
77%,
f
un
d
e
d
73% o
f
tota
l
assets. At Decem
b
er 31, 2009, tota
l
core
d
e
p
os
i
ts re
p
resente
d
92% o
f
tota
ld
e
p
os
i
ts, an
i
ncreas
e
from 86% at the prior
y
ear-end.
Core deposits are comprised of interest bearin
g
and noninterest bearin
g
demand deposits, mone
y
marke
t
deposits, savin
g
s and other domestic time deposits, consumer certificates of deposit both over and unde
r
$
250,000, and nonconsumer certificates of de
p
osit less than
$
250,000. Noncore de
p
osits consist of brokered
mone
y
mar
k
et
d
epos
i
ts an
d
cert
ifi
cates o
fd
epos
i
t,
f
ore
ig
nt
i
me
d
epos
i
ts, an
d
ot
h
er
d
omest
i
ct
i
me
d
epos
i
ts o
f
$250,000 or more comprised primaril
y
of public fund certificates of deposit more than $250,000
.
Core
d
epos
i
ts ma
yi
ncrease our nee
df
or
li
qu
idi
t
y
as cert
ifi
cates o
fd
epos
i
t mature or are w
i
t
hd
raw
n
before maturit
y
and as nonmaturit
y
deposits, such as checkin
g
and savin
g
s account balances, are withdrawn
.
Spec
ifi
ca
lly
,
if
t
h
e FDIC perm
i
ts t
h
e Transact
i
on Account Guarantee Pro
g
ram (“TAGP”) to exp
i
re as sc
h
e
d
u
l
e
d
on June 30, 2010, customers ma
y
e
l
ect to re
d
uce t
h
e
i
r
d
epos
i
ts w
i
t
h
us
i
nane
ff
ort to ma
i
nta
i
n
d
epos
i
t
93