Huntington National Bank 2009 Annual Report Download - page 107

Durin
g
the 2009 first quarter, we transferred
$
1.0 billion automobile loans and leases to a trust in
a
securitization transaction. The securitization qualified for sale accountin
g
under ASC 8
6
0. We retained
$
210.9 million of the related securities and recorded a
$
47.1 million retained residual interest as a result of th
e
transaction. Subsequent to the transaction, we sold
$
78.4 million of these securities in the 2009 second quarter
.
These amounts were recorded as investment securities on our balance sheet. We also recorded a
$
5.9 millio
n
l
oss in other noninterest income on our income statement and recorded a
$
19.5 million servicin
g
asset i
n
accrued income and other assets associated with this transaction. In 2009, amended
g
uidance was issued b
y
FASB w
i
t
h
respect to t
hi
st
y
pe o
f
transact
i
on. W
i
t
h
our a
d
opt
i
on o
f
t
hi
s amen
d
e
dg
u
id
ance
i
n 2009, t
h
e trus
t
was conso
lid
ate
d
on Januar
y
1, 2010. (See Note 3 o
f
t
h
e Notes to t
h
e Financia
l
Statements
f
or a
dd
itiona
l
details.
)
We
d
o not
b
e
li
eve t
h
at o
ff
-
b
a
l
ance s
h
eet arran
g
ements w
ill h
ave a mater
i
a
li
mpact on our
li
qu
idi
t
y
o
r
ca
p
ital resources.
Table 48 — Contractual Obli
g
ations
(
1
)
O
ne Yea
r
or
L
ess
1
t
o3
Y
ears
3
t
o5
Y
ear
s
Mo
r
e Tha
n
5Y
ears
T
ota
l
December
31, 2009
(
In millions
)
Depos
i
ts w
i
t
h
out a state
d
matur
i
t
y
..
.
.......
$
25
,
603
$
—
$
—
$
—
$
25
,
603
C
ert
ifi
cates o
fd
e
p
os
i
tan
d
ot
h
er t
i
me
de
p
osit
s
...........................
11
,
131 3
,
441 274 4
5
14,891
Federal Home Loan Bank advances .
.
....... 142 5 14
8
1
69
Short-term borrowin
g
s ..................
8
7
6
—— —
8
7
6
Ot
h
er
l
on
g
-term
d
e
b
t....................
231 902 91
1
,
14
5
2,369
Su
b
or
di
nate
d
note
s
..................... 84 6
5
183 93
2
1,264
Operat
i
n
gl
ease o
blig
at
i
on
s
............... 4
58
47
3
1
56
3
5
8
P
u
r
chase co
mm
it
m
e
n
ts
..................
101
7
824 11
214
(1) Amounts
d
o not
i
nc
l
u
d
e assoc
i
ate
di
nterest pa
y
ments.
Op
erat
i
onal R
i
sk
As w
i
t
h
a
ll
compan
i
es, we are su
bj
ect to operat
i
ona
l
r
i
s
k
. Operat
i
ona
l
r
i
s
ki
st
h
er
i
s
k
o
fl
oss
d
ue t
o
h
uman error,
i
na
d
equate or
f
a
il
e
di
nterna
l
s
y
stems an
d
contro
l
s, v
i
o
l
at
i
ons o
f
, or noncomp
li
ance w
i
t
h
,
l
aws
,
rules, re
g
ulations, prescribed practices, or ethical standards, and external influences such as market conditions
,
f
rau
d
u
l
ent act
i
v
i
t
i
es,
di
sasters, an
d
secur
i
t
y
r
i
s
k
s. We cont
i
nuous
ly
str
i
ve to stren
g
t
h
en our s
y
stem o
fi
nterna
l
contro
l
s to ensure comp
li
ance w
i
t
hl
aws, ru
l
es, an
d
re
g
u
l
at
i
ons, an
d
to
i
mprove t
h
e overs
igh
to
f
our operat
i
ona
l
risk
.
Risk Mana
g
ement mana
g
es the risk for the compan
y
throu
g
h processes that assess the overall level o
f
risk on a re
g
ular basis and identifies specific risks and the steps bein
g
taken to miti
g
ate them. To miti
g
at
e
operat
i
ona
l
an
d
comp
li
ance r
i
s
k
s, we
h
ave esta
bli
s
h
e
d
a sen
i
or mana
g
ement
l
eve
l
Operat
i
ona
l
R
i
s
k
Comm
i
ttee,
h
ea
d
e
dby
t
h
ec
hi
e
f
operat
i
ona
l
r
i
s
k
o
ffi
cer, an
d
a sen
i
or mana
g
ement
l
eve
l
Le
g
a
l
,Re
g
u
l
ator
y
,an
d
Comp
li
anc
e
Committee, headed b
y
the director of corporate compliance. The responsibilities of these committees, amon
g
ot
h
er t
hi
n
g
s,
i
nc
l
u
d
e esta
bli
s
hi
n
g
an
d
ma
i
nta
i
n
i
n
g
mana
g
ement
i
n
f
ormat
i
on s
y
stems to mon
i
tor mater
i
a
l
r
i
s
ks
an
d
to
id
ent
ify
potent
i
a
l
concerns, r
i
s
k
s, or tren
d
st
h
at ma
yh
ave a s
ig
n
ifi
cant
i
mpact an
dd
eve
l
op recommen
-
dations to address the identified issues. Both of these committees report an
y
si
g
nificant findin
g
san
d
recommendations to the executive level Risk Mana
g
ement Committee, headed b
y
the chief risk officer
.
A
ddi
t
i
ona
lly
, potent
i
a
l
concerns ma
yb
e esca
l
ate
d
to t
h
eR
i
s
k
Comm
i
ttee o
f
t
h
e
b
oar
d
o
fdi
rectors, a
s
a
pp
ro
p
r
i
ate.
T
h
e
g
oa
l
o
f
t
hi
s
f
ramewor
ki
sto
i
mp
l
ement e
ff
ect
i
ve operat
i
ona
l
r
i
s
k
tec
h
n
i
ques an
d
strate
gi
es, m
i
n
i
m
i
z
e
operational losses, and stren
g
then our overall performance
.
99