Huntington National Bank 2010 Annual Report Download - page 106

The following table presents our regulatory capital ratios at both the consolidated and Bank levels for the
past five years:
Table 46 — Regulatory Capital Ratios
2010 2009 2008 2007 2006
At December 31,
(Dollar amounts in millions)
Total risk-weighted assets ......... Consolidated $43,471 $43,248 $46,994 $46,044 $31,155
Bank 43,281 43,149 46,477 45,731 30,779
Tier 1 leverage ratio ............. Consolidated 9.41% 10.09% 9.82% 6.77% 8.00%
Bank 6.97 5.59 5.99 5.99 5.81
Tier 1 risk-based capital ratio ...... Consolidated 11.55 12.03 10.72 7.51 8.93
Bank 8.51 6.66 6.44 6.64 6.47
Total risk-based capital ratio ....... Consolidated 14.46 14.41 13.91 10.85 12.79
Bank 12.82 11.08 10.71 10.17 10.44
Our consolidated Tier 1 risk-based capital ratios at December 31, 2010, declined from 2009, primarily
reflecting a reduction in Tier 1 capital. The primary drivers of the decline in Tier 1 Capital were the
$1.4 billion repurchase of TARP Capital, offset by the $0.9 billion common stock issuance and $0.3 billion of
earnings in 2010. Our total risk-based capital ratio was little changed as the decline in Tier 1 capital was offset
by an increase in Tier 2 capital. The change in Tier 2 capital primarily reflected our $0.3 billion subordinated
debt issuance.
The Bank’s Tier 1 risk-based capital ratios improved, reflecting an increase in Tier 1 capital, primarily
due to an increase in retained earnings (see Parent Company Liquidity discussion). The repurchase of the
TARP Capital did not affect the Bank’s capital ratios.
At December 31, 2010, our Tier 1 and total risk-based capital in excess of the minimum level required to
be considered Well-capitalized were $2.4 billion and $1.9 billion, respectively. The Bank had Tier 1 and Total
risk-based capital in excess of the minimum level required to be considered Well-capitalized of $1.1 billion
and $1.2 billion, respectively, at December 31, 2010.
Other Capital Matters
In 2010, shareholders passed a proposal to amend our charter resulting in an increase of authorized
common stock to 1.5 billion shares from 1.0 billion shares. No shares were repurchased during 2010.
BUSINESS SEGMENT DISCUSSION
Overview
For detail on each segment’s objectives, strategies, and priorities, please read this section in conjunction
with the Item 1: Business section. This section reviews financial performance from a business segment
perspective and should be read in conjunction with the Discussion of Results of Operations, Note 25 of the
Notes to Consolidated Financial Statements, and other sections for a full understanding of our consolidated
financial performance.
During the 2010 fourth quarter, we reorganized our business segments to better align certain business unit
reporting with segment executives in order to accelerate cross-sell results and provide greater focus on the
execution of strategic plans. We have four major business segments: Retail and Business Banking; Commercial
Banking; Automobile Finance and Commercial Real Estate; and Wealth Advisors, Government Finance, and
Home Lending. A Treasury / Other function includes our insurance business, and other unallocated assets,
liabilities, revenue, and expense. All periods presented have been reclassified to conform to the current period
classification.
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