Huntington National Bank 2009 Annual Report Download - page 204

25.
O
THER RE
GU
LAT
O
RY MATTER
S
H
untin
g
ton and its bank subsidiar
y
, The Huntin
g
ton National Bank, are sub
j
ect to various re
g
ulator
y
capital requirements administered b
y
federal and state bankin
g
a
g
encies. These requirements involve qualita-
tive
j
ud
g
ments and quantitative measures of assets, liabilities, capital amounts, and certain off-balance shee
t
items as calculated under re
g
ulator
y
accountin
g
practices. Failure to meet minimum capital requirements ca
n
i
n
i
t
i
ate certa
i
n act
i
ons
by
re
g
u
l
ators t
h
at,
if
un
d
erta
k
en, cou
ld h
ave a mater
i
a
l
a
d
verse e
ff
ect on Hunt
i
n
g
ton’
s
an
d
T
h
e Hunt
i
n
g
ton Nat
i
ona
l
Ban
k
’s
fi
nanc
i
a
l
statements. App
li
ca
bl
e cap
i
ta
l
a
d
equac
yg
u
id
e
li
nes requ
i
r
e
m
i
n
i
mum rat
i
os o
f
4.00%
f
or T
i
er 1 R
i
s
k
-
b
ase
d
Ca
pi
ta
l
, 8.00%
f
or Tota
l
R
i
s
k
-
b
ase
d
Ca
pi
ta
l
,an
d
4.00%
f
o
r
Tier 1 Levera
g
e Capital. To be considered “well-capitalized” under the re
g
ulator
y
framework for promp
t
corrective action, the ratios must be at least 6.00%, 10.00%, and
5
.00%, respectivel
y.
As of December 31, 2009, Huntin
g
ton and The Huntin
g
ton National Bank (the Bank) met all capita
l
a
d
equac
y
requ
i
rements an
dh
a
d
re
g
u
l
ator
y
cap
i
ta
l
rat
i
os
i
n excess o
f
t
h
e
l
eve
l
s esta
bli
s
h
e
df
or “we
ll
-cap
i-
ta
li
ze
d
”
i
nst
i
tut
i
ons. T
h
e per
i
o
d
-en
d
cap
i
ta
l
amounts an
d
cap
i
ta
l
rat
i
os o
f
Hunt
i
n
g
ton an
d
t
h
e Ban
k
are a
s
follo
w
s
:
2009 2008 2009 2008 2009 200
8
Ti
er 1 Total
C
ap
i
tal T
i
er 1 Levera
ge
(
In millions
)
Hunt
i
n
g
ton Bancshares Incorporated
A
m
ou
n
t
...............................
$
5
,
201
$
5
,
03
6
$
6
,
231
$
6
,
53
5
$
5
,
201
$
5
,
03
6
Rati
o
.................................
12.0
3%
10
.7
2%
14.41
%
13
.
91%
10.09
%
9
.
82%
The Huntin
g
ton National Ban
k
A
m
ou
n
t
...............................
$
2,873
$
2
,
99
5
$
4,780
$
4
,
97
8
$
2,873
$
2
,
99
5
R
atio
.................................
6.66
%
6
.44% 11.08
%
10
.7
1%
5.59
%
5
.
99%
T
i
er 1 R
i
s
k
-
b
ase
d
Cap
i
ta
l
cons
i
sts o
f
tota
l
equ
i
t
y
p
l
us qua
lifyi
n
g
cap
i
ta
l
secur
i
t
i
es an
d
m
i
nor
i
t
yi
nterest
,
exc
l
u
di
n
g
unrea
li
ze
dg
a
i
ns an
dl
osses accumu
l
ate
di
not
h
er compre
h
ens
i
ve
i
ncome, an
d
non-qua
lifyi
n
g
i
ntan
gibl
ean
d
serv
i
c
i
n
g
assets. Tota
l
R
i
s
k
-
b
ase
d
Cap
i
ta
li
sT
i
er 1 R
i
s
k
-
b
ase
d
Cap
i
ta
l
p
l
us qua
lifyi
n
g
subordinated notes and allowable allowances for credit losses (limited to 1.25% of total risk-wei
g
hted assets)
.
T
i
er 1 Levera
g
e Cap
i
ta
li
s equa
l
to T
i
er 1 Cap
i
ta
l
. Bot
h
T
i
er 1 Cap
i
ta
l
an
d
Tota
l
Cap
i
ta
l
rat
i
os are
d
er
i
ve
dby
di
v
idi
n
g
t
h
e respect
i
ve cap
i
ta
l
amounts
by
net r
i
s
k
-we
igh
te
d
assets, w
hi
c
h
are ca
l
cu
l
ate
d
as prescr
ib
e
dby
re
g
ulator
y
a
g
encies. Tier 1 Levera
g
e Capital ratio is calculated b
y
dividin
g
the Tier 1 capital amount b
y
avera
g
e tota
l
assets
f
or t
h
e
f
ourt
h
quarter o
f
2009 an
d
2008,
l
ess non-qua
lifyi
n
gi
ntan
gibl
es an
d
ot
h
e
r
a
dj
ustments.
T
h
e parent compan
yh
as t
h
ea
bili
t
y
to prov
id
ea
ddi
t
i
ona
l
cap
i
ta
l
to t
h
e Ban
k
to ma
i
nta
i
nt
h
e Ban
k
’s r
i
s
k-
b
ase
d
ca
pi
ta
l
rat
i
os at
l
eve
l
satw
hi
c
h
wou
ld b
e cons
id
ere
d
“we
ll
-ca
pi
ta
li
ze
d
.
”
H
unt
i
n
g
ton an
di
ts su
b
s
idi
ar
i
es are a
l
so su
bj
ect to var
i
ous re
g
u
l
ator
y
requ
i
rements t
h
at
i
mpose restr
i
ct
i
ons
on cash, debt, and dividends. The Bank is re
q
uired to maintain cash reserves based on the level of certain o
f
its deposits. This reserve requirement ma
y
be met b
y
holdin
g
cash in bankin
g
offices or on deposit at th
e
Federal Reserve Bank. Durin
g
2009 and 2008, the avera
g
e balance of these deposits were
$
1.4 billion and
$
44.8 million, respectivel
y
.
Un
d
er current Fe
d
era
l
Reserve re
g
u
l
at
i
ons, t
h
e Ban
ki
s
li
m
i
te
d
as to t
h
e amount an
d
t
y
pe o
fl
oans
i
tma
y
make to the parent compan
y
and non-bank subsidiaries. At December 31, 2009, the Bank could len
d
$478.0 million to a sin
g
le affiliate, sub
j
ect to the qualif
y
in
g
collateral requirements defined in the re
g
ulations
.
Dividends from the Bank are one of the ma
j
or sources of funds for Huntin
g
ton. These funds aid the
parent compan
y
in the pa
y
ment of dividends to shareholders, expenses, and other obli
g
ations. Pa
y
ment o
f
di
v
id
en
d
stot
h
e parent compan
yi
ssu
bj
ect to var
i
ous
l
e
g
a
l
an
d
re
g
u
l
ator
yli
m
i
tat
i
ons. Re
g
u
l
ator
y
approva
lis
requ
i
re
d
pr
i
or to t
h
e
d
ec
l
arat
i
on o
f
an
ydi
v
id
en
d
s
i
n excess o
f
ava
il
a
bl
e reta
i
ne
d
earn
i
n
g
s. T
h
e amount o
f
dividends that ma
y
be declared without re
g
ulator
y
approval is further limited to the sum of net income for the
current
y
ear an
d
reta
i
ne
d
net
i
ncome
f
or t
h
e prece
di
n
g
two
y
ears,
l
ess an
y
requ
i
re
d
trans
f
ers to surp
l
us or
19
6