Huntington National Bank 2009 Annual Report Download - page 197

relationship is effective, recorded throu
g
h earnin
g
s and offset a
g
ainst chan
g
es in the fair value of the hed
g
e
d
i
tem.
T
he followin
g
table presents the increase or (decrease) to interest expense for derivatives desi
g
nated a
s
f
a
i
rva
l
ue
h
e
dg
es
:
Der
i
vat
i
ves
i
nFa
i
r
Value Hed
gi
n
g
Relat
i
onsh
i
ps
Locat
i
on o
fC
han
g
e
i
nFa
i
r Value Reco
g
n
i
zed
in
Earn
i
n
g
s on Der
i
vat
i
ve 2009 2008 200
7
I
ncrease
(
decrease
)
to
interest ex
p
ens
e
(
In thousands
)
Interest Rate
C
ontract
s
De
p
os
i
ts
.....................
Interest ex
p
ense — de
p
osits
$
(3,648)
$
(2,322)
$
4,12
0
Subordinated note
s
.............
Interest ex
p
ense — subordinated notes
and other lon
g
term debt (27,
5
76) (1
5
,349) 260
Ot
h
er
l
on
g
term
d
e
b
t
............
Interest expense — su
b
or
di
nate
d
notes
and other lon
g
term debt 378 3,810 6,
5
9
8
To
t
al
.........................
$(
30,846
)$(
13,861
)$
10,978
For cas
hfl
ow
h
e
dg
es,
i
nterest rate swap contracts were entere
di
nto t
h
at pa
yfi
xe
d
-rate
i
nterest
in
exc
h
an
g
e
f
or t
h
e rece
i
pt o
f
var
i
a
bl
e-rate
i
nterest w
i
t
h
out t
h
e exc
h
an
g
eo
f
t
h
e contract’s un
d
er
lyi
n
g
not
i
ona
l
amount, w
hi
c
h
e
ff
ect
i
ve
ly
converts a port
i
on o
fi
ts
fl
oat
i
n
g
-rate
d
e
b
tto
fi
xe
d
-rate. T
hi
sre
d
uces t
h
e potent
i
a
lly
adverse im
p
act of increases in interest rates on future interest ex
p
ense. Other LIBOR-based commercial and
i
n
d
ustr
i
a
ll
oans were e
ff
ect
i
ve
ly
converte
d
to
fi
xe
d
-rate
by
enter
i
n
gi
nto contracts t
h
at swap certa
i
nvar
i
a
bl
e
-
rate
i
nterest pa
y
ments
f
or
fi
xe
d
-rate
i
nterest pa
y
ments at
d
es
ig
nate
d
t
i
mes
.
To t
h
e extent t
h
ese
d
er
i
vat
i
ves are e
ff
ect
i
ve
i
no
ff
sett
i
n
g
t
h
evar
i
a
bili
t
y
o
f
t
h
e
h
e
dg
e
d
cas
hfl
ows, c
h
an
g
e
s
i
nt
h
e
d
er
i
vat
i
ves’
f
a
i
rva
l
ue w
ill
not
b
e
i
nc
l
u
d
e
di
n current earn
i
n
g
s
b
ut are reporte
d
as a component o
f
accumulated other comprehensive income in shareholders’ equit
y
. These chan
g
es in fair value will be include
d
i
n earn
i
n
g
so
ff
uture per
i
o
d
sw
h
en earn
i
n
g
s are a
l
so a
ff
ecte
dby
t
h
ec
h
an
g
es
i
nt
h
e
h
e
dg
e
d
cas
hfl
ows. To t
he
extent t
h
ese
d
er
i
vat
i
ves are not e
ff
ect
i
ve, c
h
an
g
es
i
nt
h
e
i
r
f
a
i
rva
l
ues are
i
mme
di
ate
ly i
nc
l
u
d
e
di
n
i
nterest
i
ncome
.
T
h
e
f
o
ll
ow
i
n
g
ta
bl
e presents t
h
e
g
a
i
ns an
d
(
l
osses) reco
g
n
i
ze
di
not
h
er compre
h
ens
i
ve
i
ncome (OCI) an
d
the location in the consolidated statements of income of
g
ains and (losses) reclassified from OCI into earnin
gs
for derivatives desi
g
nated as effective cash flow hed
g
es:
2009 2008 200
7
2009 2008 2007
Derivatives in
C
ash
Flow Hed
gi
n
g
Relat
i
onsh
ips
Am
ou
nt
of
Gain or
(
Loss
)
Reco
g
n
i
zed
in
OC
I on Der
i
vat
i
ves
(
Effective Portion
)
Location of Gain or
(
Loss
)
R
ec
l
assified f
r
o
mA
ccu
m
u
l
a
t
ed
OC
I
i
nto Earn
i
n
g
s
(
Effective Portion
)
A
mount o
fG
a
i
n
or
(
Loss
)
Reclassifie
d
f
r
o
mA
ccu
m
u
l
a
t
ed
OC
I
i
nto Earn
i
n
gs
(
Effective Portion
)
(
In thousands
)
I
nt
e
r
es
tr
a
t
eco
ntr
ac
t
s
Loans . . . . . . . . . . . . . . $
(
68,365
)
$54,887 $ — Interest and fee income
—
loans and leases $117,669 $
(
9,207
)
$ 10,25
7
FHLB Advances . . . . . . . 1,338 2,394 (4,18
6
) Interest ex
p
ense — FHL
B
Advances
6
,890
(
12,490
)(
13,034
)
De
p
osits . . . . . . . . . . . . . 326 2,842 (1,946) Interest ex
p
ense — de
p
osits 4,153 (4,169) (360)
Su
b
or
di
nate
d
notes . . . . . 101 (101) — Interest ex
p
ense
—
su
b
or
di
nate
d
notes an
d
ot
h
er
lon
g
term debt (2,717) (4,408) (
5
,
5
12
)
Other lon
g
term debt . . . . — 239 (12
5
) Interest expense —
subo
r
d
in
ated
n
otes a
n
dot
h
e
r
lon
g
term debt (899) (86
5
) (886
)
Total . . . . . . . . . . . . . . . . .
$(
66,600
)$
60,261
$(
6,257
)$
125,096
$(
31,139
)$(
9,535
)
189