Huntington National Bank 2009 Annual Report Download - page 21

•
$
4.5 billion in residential real estate loans, representin
g
12% of total loans and leases. Ad
j
ustable-rat
e
mort
g
a
g
es, primaril
y
mort
g
a
g
es that have a fixed rate for the first 3 to
5y
ears and then ad
j
ust annuall
y,
c
om
p
rised
5
6% of this
p
ortfolio
.
•
$
0.9 billion of loans to sin
g
le famil
y
home builders. These loans represented 2% of total loans and
leases
.
• $4.9 billion of mort
g
a
g
e-backed securities, includin
g
$3.5 billion of Federal A
g
enc
y
mort
g
a
g
e-backe
d
securities,
$
0.5 billion of private label collateralized mort
g
a
g
e obli
g
ations,
$
0.1 billion of Alt-
A
mort
g
a
g
e backed securities, and
$
0.1 billion of pooled trust preferred securities that could be ne
g
ativel
y
affected b
y
a decline in home values
.
•
$
0.3 billion of bank owned life insurance (BOLI) investments primaril
y
in mort
g
a
g
e-backed securities
.
This investment re
p
resents 24% of the total BOLI investment
p
ortfolio.
Adverse econom
i
c cond
i
t
i
ons
i
n the automob
i
le manu
f
actur
i
n
g
and related serv
i
ce
i
ndustr
i
es may
i
mpac
t
our bank
i
n
g
bus
i
ness
.
Man
y
o
f
t
h
e
b
an
ki
n
g
mar
k
ets we serve are connecte
d
,
di
rect
ly
or
i
n
di
rect
ly
,tot
h
e automo
bil
e
m
anufacturin
g
industr
y
. We do not have an
y
direct credit exposure to automobile manufacturers. However, w
e
do have a modest ex
p
osure to com
p
anies that derive more than 25% of their revenues from contracts with th
e
automo
bil
e manu
f
actur
i
n
g
compan
i
es. A
l
so, t
h
ese automo
bil
e manu
f
acturers or t
h
e
i
r supp
li
ers emp
l
o
y
man
y
o
f
our consumer customers. T
h
e automo
bil
e manu
f
actur
i
n
gi
n
d
ustr
yh
as exper
i
ence
d
s
ig
n
ifi
cant econom
i
c
difficulties over the past five
y
ears, which, in turn, has adversel
y
impacted a number of related industries tha
t
serve t
h
e automo
bil
e manu
f
actur
i
n
gi
n
d
ustr
y
,
i
nc
l
u
di
n
g
automo
bil
e parts supp
li
ers an
d
ot
h
er
i
n
di
rect
b
us
i-
n
esses. We cannot prov
id
e assurance t
h
at t
h
e econom
i
c con
di
t
i
ons
i
nt
h
e automo
bil
e manu
f
actur
i
n
g
an
d
re
l
ate
d
service industries will improve at an
y
time in the foreseeable future or that adverse economic conditions in
these industries will not im
p
act the Bank
.
(
2
)
Mar
k
et Ris
k
s
:
W
e may ra
i
se add
i
t
i
onal cap
i
tal, wh
i
ch could have a d
i
lut
i
ve e
ff
ect on the ex
i
st
i
n
g
holders o
f
our com-
m
on stock and adversel
y
affect the market
p
rice of our common stock
.
Durin
g
2009, we issued 34
6
.8 million shares of additional common stock throu
g
h two common stock
public offerin
g
s, three discretionar
y
equit
y
issuance pro
g
rams, and conversions of preferred stock into commo
n
stock. The issuance of these additional shares of common stock resulted in a 9
5
% increase of outstandin
g
s
h
ares o
f
common stoc
k
at Decem
b
er 31, 2009, com
p
are
d
w
i
t
h
Decem
b
er 31, 2008, an
d
t
h
ose a
ddi
t
i
ona
l
shares were si
g
nificantl
y
dilutive to existin
g
common shareholders. (See the “Capital” section located withi
n
the “Risk Mana
g
ement and Capital” section for additional information). As of December 31, 2009, we had
130.2 m
illi
on o
f
a
ddi
t
i
ona
l
aut
h
or
i
ze
d
common s
h
ares ava
il
a
bl
e
f
or
i
ssuance
,
an
d
4.8 m
illi
on o
f
a
ddi
t
i
ona
l
aut
h
or
i
ze
dp
re
f
erre
d
s
h
ares ava
il
a
bl
e
f
or
i
ssuance.
We are not restr
i
cte
df
rom
i
ssu
i
n
g
a
ddi
t
i
ona
l
aut
h
or
i
ze
d
s
h
ares o
f
common stoc
k
or secur
i
t
i
es t
h
at are
convertible into or exchan
g
eable for, or that represent the ri
g
ht to receive, common stock. We continuall
y
evaluate opportunities to access capital markets takin
g
into account our re
g
ulator
y
capital ratios, financia
l
con
di
t
i
on, an
d
ot
h
er re
l
evant cons
id
erat
i
ons, an
d
su
bj
ect to mar
k
et con
di
t
i
ons, we ma
y
ta
k
e
f
urt
h
er cap
i
ta
l
act
i
ons. Suc
h
act
i
ons, w
i
t
h
re
g
u
l
ator
y
approva
l
w
h
en requ
i
re
d
,ma
yi
nc
l
u
d
e opportun
i
st
i
ca
lly
ret
i
r
i
n
g
ou
r
outstandin
g
securities, includin
g
our subordinated debt, trust-preferred securities, and preferred shares, in ope
n
m
ar
k
et transact
i
ons, pr
i
vate
ly
ne
g
ot
i
ate
d
transact
i
ons, or pu
bli
co
ff
ers
f
or cas
h
or common s
h
ares, as we
ll
a
s
i
ssu
i
n
g
a
ddi
t
i
ona
l
s
h
ares o
f
common stoc
ki
npu
bli
corpr
i
vate transact
i
ons
i
nor
d
er to
i
ncrease our cap
i
ta
l
l
evels above our alread
y
“well-capitalized” levels, as defined b
y
the federal bank re
g
ulator
y
a
g
encies, an
d
other re
g
ulator
y
capital tar
g
ets
.
Both Huntin
g
ton and the Bank are hi
g
hl
y
re
g
ulated, and we, as well as our re
g
ulators, continue t
o
re
g
u
l
ar
ly
per
f
orm a var
i
et
y
o
f
cap
i
ta
l
ana
ly
ses,
i
nc
l
u
di
n
g
t
h
e preparat
i
on o
f
stress case scenar
i
os. As a resu
lt
o
f
t
h
ose assessments, we cou
ld d
eterm
i
ne, or our re
g
u
l
ators cou
ld
requ
i
re us, to ra
i
se a
ddi
t
i
ona
l
cap
i
ta
li
nt
he
13