Huntington National Bank 2009 Annual Report Download - page 201

trust securities will also be deferred and Huntin
g
ton’s abilit
y
to pa
y
dividends on its common stock will be
restricted. Periodic cash pa
y
ments and pa
y
ments upon liquidation or redemption with respect to trust securitie
s
are
g
uaranteed b
y
Huntin
g
ton to the extent of funds held b
y
the trusts. The
g
uarantee ranks subordinate an
d
j
unior in ri
g
ht of pa
y
ment to all indebtedness of the compan
y
to the same extent as the
j
unior subordinated
d
e
b
t. T
h
e
g
uarantee
d
oes not p
l
ace a
li
m
i
tat
i
on on t
h
e amount o
f
a
ddi
t
i
ona
li
n
d
e
b
te
d
ness t
h
at ma
yb
e
i
ncurre
d
b
y
Huntin
g
ton.
L
ow Income Housing Tax Cre
d
it Partners
h
ips
Huntin
g
ton makes certain equit
y
investments in various limited partnerships that sponsor affordabl
e
h
ous
i
n
g
pro
j
ects ut
ili
z
i
n
g
t
h
e Low Income Hous
i
n
g
Tax Cre
di
t (LIHTC) pursuant to Sect
i
on 42 o
f
t
h
e Interna
l
R
evenue Co
d
e. T
h
e purpose o
f
t
h
ese
i
nvestments
i
stoac
hi
eve a sat
i
s
f
actor
y
return on cap
i
ta
l
,to
f
ac
ili
tate t
he
sale of additional affordable housin
g
product offerin
g
s and to assist us in achievin
gg
oals associated with th
e
Communit
y
Reinvestment Act. The primar
y
activities of the limited partnerships include the identification
,
d
eve
l
opment, an
d
operat
i
on o
f
mu
l
t
i
-
f
am
ily h
ous
i
n
g
t
h
at
i
s
l
ease
d
to qua
lifyi
n
g
res
id
ent
i
a
l
tenants. Genera
lly,
t
h
ese t
y
pes o
fi
nvestments are
f
un
d
e
d
t
h
rou
gh
a com
bi
nat
i
on o
fd
e
b
tan
d
equ
i
t
y.
Hunt
i
n
g
ton
d
oes not own a ma
j
or
i
t
y
o
f
t
h
e
li
m
i
te
d
partners
hi
p
i
nterests
i
nt
h
ese ent
i
t
i
es an
di
s not t
h
e
primar
y
beneficiar
y
. Huntin
g
ton uses the equit
y
method to account for the ma
j
orit
y
of its investments in thes
e
entities. These investments are included in accrued income and other assets. At December 31
,
2009 and 2008
,
Huntin
g
ton has commitments of
$
285.3 million and
$
216.2 million, respectivel
y
of which
$
192.7 million an
d
$
166.4 million, respectivel
y
are funded. The unfunded portion is included in accrued expenses and other
liabilities.
2
4.
CO
MMITMENT
S
AND
CO
NTIN
G
ENT LIABILITIE
S
C
ommitments to exten
d
cre
d
i
t
In t
h
eor
di
nar
y
course o
fb
us
i
ness, Hunt
i
n
g
ton ma
k
es var
i
ous comm
i
tments to exten
d
cre
di
tt
h
at are not
re
fl
ecte
di
nt
h
e
fi
nanc
i
a
l
statements. T
h
e contract amounts o
f
t
h
ese
fi
nanc
i
a
l
a
g
reements at Decem
b
er 31
,
2009 and December 31
,
2008
,
were as follows:
2009 2008
At December 31
,
(
In millions
)
C
ontract amount re
p
resents cred
i
tr
i
sk
C
omm
i
tments to exten
d
cre
di
t
Commerc
i
a
l
................................................
$5
,
83
4
$
6
,
49
4
Consume
r
..................................................
5
,
02
8
4,
964
Commercial real estate
........................................
1
,
07
5
1
,
951
Stan
db
y
l
etters o
f
cre
dit
.........................................
577
1,2
7
2
Commitments to extend credit
g
enerall
y
have fixed expiration dates, are variable-rate, and contain clause
s
t
h
at perm
i
t Hunt
i
n
g
ton to term
i
nate or ot
h
erw
i
se rene
g
ot
i
ate t
h
e contracts
i
nt
h
e event o
f
as
ig
n
ifi
cant
d
eter
i
orat
i
on
i
nt
h
e customer’s cre
di
t qua
li
t
y
.T
h
ese arran
g
ements norma
lly
requ
i
re t
h
epa
y
ment o
f
a
f
ee
by
t
he
customer, the pricin
g
of which is based on prevailin
g
market conditions, credit qualit
y
, probabilit
y
of fundin
g,
an
d
ot
h
er re
l
evant
f
actors. S
i
nce man
y
o
f
t
h
ese comm
i
tments are expecte
d
to exp
i
re w
i
t
h
out
b
e
i
n
gd
raw
n
upon, t
h
e contract amounts are not necessar
ily i
n
di
cat
i
ve o
ff
uture cas
h
requ
i
rements. T
h
e
i
nterest rate r
i
s
k
arisin
g
from these financial instruments is insi
g
nificant as a result of their predominantl
y
short-term, variable
-
rate nature
.
Standb
y
letters of credit are conditional commitments issued to
g
uarantee the performance of a custome
r
to a t
hi
r
d
part
y
.T
h
ese
g
uarantees are pr
i
mar
ily i
ssue
d
to support pu
bli
can
d
pr
i
vate
b
orrow
i
n
g
arran
g
ements
,
i
nc
l
u
di
n
g
commerc
i
a
l
paper,
b
on
dfi
nanc
i
n
g
,an
d
s
i
m
il
ar transact
i
ons. Most o
f
t
h
ese arran
g
ements matur
e
within two
y
ears. The carr
y
in
g
amount of deferred revenue associated with these
g
uarantees was $2.8 millio
n
and $4.5 million at December 31, 2009 and 2008, respectivel
y.
193