Huntington National Bank 2009 Annual Report Download - page 24

Under applicable statutes and re
g
ulations, dividends b
y
a national bank ma
y
be paid out of current or
reta
i
ne
d
net pro
fi
ts,
b
ut a nat
i
ona
lb
an
ki
s pro
hibi
te
df
rom
d
ec
l
ar
i
n
g
a cas
hdi
v
id
en
d
on s
h
ares o
fi
ts commo
n
stock out of net
p
rofits until the sur
p
lus fund e
q
uals the amount of ca
p
ital stock or, if the sur
p
lus fund doe
s
not e
q
ual the amount of ca
p
ital stock, until certain amounts from net
p
rofits are transferred to the sur
p
lu
s
f
un
d
. Moreover, t
h
epr
i
or approva
l
o
f
t
h
e OCC
i
s requ
i
re
df
or t
h
epa
y
ment o
f
a
di
v
id
en
dif
t
h
e tota
l
o
f
a
ll
di
v
id
en
d
s
d
ec
l
are
dby
a nat
i
ona
lb
an
ki
nan
y
ca
l
en
d
ar
y
ear wou
ld
excee
d
t
h
e tota
l
o
fi
ts net pro
fi
ts
f
or t
he
y
ear combined with its net profits for the two precedin
gy
ears, less an
y
required transfers to surplus or a fun
d
f
or t
h
e ret
i
rement o
f
an
y
pre
f
erre
d
secur
i
t
i
es
.
We do not anticipate that the holdin
g
compan
y
will receive dividends from the Bank durin
g
2010, as w
e
b
u
ild
t
h
e Ban
k
’s re
g
u
l
ator
y
cap
i
ta
ll
eve
l
sa
b
ove our a
l
rea
dy
“we
ll
-cap
i
ta
li
ze
d
”
l
eve
l.
Pa
y
ment o
fdi
v
id
en
d
s cou
ld
a
l
so
b
esu
bj
ect to re
g
u
l
ator
yli
m
i
tat
i
ons
if
t
h
e Ban
kb
ecame “un
d
er-
cap
i
ta
li
ze
d
”
f
or purposes o
f
t
h
e OCC “prompt correct
i
ve act
i
on” re
g
u
l
at
i
ons. “Un
d
er-cap
i
ta
li
ze
d
”
i
s current
ly
d
e
fi
ne
d
as
h
av
i
n
g
a tota
l
r
i
s
k
-
b
ase
d
cap
i
ta
l
rat
i
oo
fl
ess t
h
an 8.0%, a T
i
er 1 r
i
s
k
-
b
ase
d
cap
i
ta
l
rat
i
oo
fl
ess t
h
an
4.0%, or a core capital, or levera
g
e, ratio of less than 4.0%. If the Bank were unable to pa
y
dividends to the
parent compan
y
,
i
t cou
ld i
mpact our a
bili
t
y
to pa
ydi
v
id
en
d
stos
h
are
h
o
ld
ers or repurc
h
ase stoc
k
.T
h
rou
gh
ou
t
2009, t
h
e Ban
k
was
i
n comp
li
ance w
i
t
h
a
ll
re
g
u
l
ator
y
cap
i
ta
l
requ
i
rements an
d
cons
id
ere
d
to
b
e “we
ll-
ca
p
italized.
”
For
f
urt
h
er
di
scuss
i
on, see t
h
e “Parent Compan
y
L
i
qu
idi
t
y
” sect
i
on.
(
4) O
p
erational Risks
:
L
e
g
islative and re
g
ulatory actions taken now or in the future to address the current liquidity and credi
t
crisis in the financial industry may si
g
nificantly affect our financial condition, results of operation,
l
iq
u
i
d
i
t
y
, or stock
p
r
i
ce.
C
urrent econom
i
c con
di
t
i
ons, part
i
cu
l
ar
ly i
nt
h
e
fi
nanc
i
a
l
mar
k
ets,
h
ave resu
l
te
di
n
g
overnment re
g
u
l
ator
y
a
g
enc
i
es an
d
po
li
t
i
ca
lb
o
di
es p
l
ac
i
n
gi
ncrease
df
ocus on an
d
scrut
i
n
y
o
f
t
h
e
fi
nanc
i
a
l
serv
i
ces
i
n
d
ustr
y
.T
he
U.S. Government has intervened on an unprecedented scale, respondin
g
to what has been commonl
y
referre
d
to as the financial crisis. In addition to the U.S. Treasur
y
Department’s CPP under the TARP announced in th
e
f
a
ll
o
f
2008 an
d
t
h
e new Cap
i
ta
l
Ass
i
stance Pro
g
ram (CAP) announce
di
n spr
i
n
g
o
f
2009, t
h
e U.S. Government
h
as ta
k
en steps t
h
at
i
nc
l
u
d
een
h
anc
i
n
g
t
h
e
li
qu
idi
t
y
support ava
il
a
bl
eto
fi
nanc
i
a
li
nst
i
tut
i
ons, esta
bli
s
hi
n
ga
commercial paper fundin
g
facilit
y
, temporaril
yg
uaranteein
g
mone
y
market funds and certain t
y
pes of deb
t
i
ssuances, an
di
ncreas
i
n
gi
nsurance on
b
an
kd
epos
i
ts. T
h
e U.S. Con
g
ress, t
h
rou
gh
t
h
e Emer
g
enc
y
Econom
ic
Sta
bili
zat
i
on Act o
f
2008 an
d
t
h
e Amer
i
can Recover
y
an
d
Re
i
nvestment Act o
f
2009,
h
as
i
mpose
d
a num
b
e
r
of restrictions and limitations on the operations of financial services firms participatin
g
in the federa
l
pro
g
rams.
These pro
g
rams sub
j
ect us, and other financial institutions that participate in them, to additiona
l
restr
i
ct
i
ons, overs
igh
t, an
d
costs t
h
at ma
yh
ave an a
d
verse
i
mpact on our
b
us
i
ness,
fi
nanc
i
a
l
con
di
t
i
on, resu
l
ts
o
f
operat
i
ons, or t
h
epr
i
ce o
f
our common stoc
k
.Ina
ddi
t
i
on, new proposa
l
s
f
or
l
e
gi
s
l
at
i
on cont
i
nue to
be
introduced in the U.S. Con
g
ress that could further increase re
g
ulation of the financial services industr
y
and
impose restrictions on the operations and
g
eneral abilit
y
of firms within the industr
y
to conduct busines
s
cons
i
stent w
i
t
hhi
stor
i
ca
l
pract
i
ces,
i
nc
l
u
di
n
g
as re
l
ate
d
to compensat
i
on,
i
nterest rates, t
h
e
i
mpact o
f
bankruptc
y
proceedin
g
s on consumer real propert
y
mort
g
a
g
es, and otherwise. Federal and state re
g
ulator
y
a
g
encies also frequentl
y
adopt chan
g
es to their re
g
ulations and/or chan
g
e the manner in which existin
g
re
g
u
l
at
i
ons are app
li
e
d
. We cannot pre
di
ct t
h
esu
b
stance or
i
mpact o
f
pen
di
n
g
or
f
uture
l
e
gi
s
l
at
i
on, re
g
u
l
at
i
on
,
or
i
ts app
li
cat
i
on. Comp
li
ance w
i
t
h
suc
h
current an
d
potent
i
a
l
re
g
u
l
at
i
on an
d
scrut
i
n
y
ma
y
s
ig
n
ifi
cant
ly
increase our costs, impede the efficienc
y
of our internal business processes, ne
g
ativel
y
impact the recoverabil
-
it
y
of certain of our recorded assets, require us to increase our re
g
ulator
y
capital, and limit our abilit
y
to
p
ursue
b
us
i
ness o
pp
ortun
i
t
i
es
i
nane
ffi
c
i
ent manner
.
Recent
l
e
gi
s
l
at
i
ve proposa
l
s
i
n Con
g
ress cou
ld i
mpact
h
ow we assess
f
ees on
d
epos
i
t accounts
f
or
i
tem
s
an
d
transact
i
ons t
h
at e
i
t
h
er over
d
raw an account or t
h
at are returne
df
or nonsu
ffi
c
i
ent
f
un
d
s. It
i
s uncerta
in
1
6