Huntington National Bank 2010 Annual Report Download - page 206

21. VIEs
Consolidated VIEs
Consolidated VIEs at December 31, 2010 consist of the Franklin 2009 Trust (See Note 3) and certain
loan securitization trusts. Loan securitizations include auto loan and lease securitization trusts formed in 2009,
2008, and 2006. Huntington has determined the trusts are VIEs. Through Huntington’s continuing involvement
in the trusts (including ownership of beneficial interests and certain servicing or collateral management
activities), Huntington is the primary beneficiary.
With the adoption of amended accounting guidance for VIEs, Huntington consolidated the 2009 Trust
containing automobile loans on January 1, 2010. Huntington elected the fair value option under ASC 825,
Financial Instruments, for both the automobile loans and the related debt obligations. Upon adoption of the
new accounting standards, total assets increased $621.6 million, total liabilities increased $629.3 million, and a
negative cumulative effect adjustment to OCI and retained earnings of $6.1 million was recorded.
The carrying amount and classification of the trusts’ assets and liabilities included in the Consolidated
Balance Sheets are as follows:
(Dollar amounts in thousands)
Franklin
2009 Trust 2009 Trust 2008 Trust 2006 Trust Total
December 31, 2010
Assets
Cash ............................ $ — $ 24,513 $ 19,921 $ 64,827 $ 109,261
Loans and leases ................... — 522,717 295,464 1,196,024 2,014,205
Allowance for loan and lease losses ..... — — (2,541) (10,286) (12,827)
Net loans and leases ................ — 522,717 292,923 1,185,738 2,001,378
Accrued income and other assets ....... 20,447 2,510 1,436 5,131 29,524
Total assets ......................... $20,447 $549,740 $314,280 $1,255,696 $2,140,163
Liabilities
Other long-term debt ................ $ — $356,089 $151,937 $ 877,270 $1,385,296
Accrued interest and other liabilities .... 7,431 693 308 224 8,656
Total liabilities ...................... $ 7,431 $356,782 $152,245 $ 877,494 $1,393,952
The auto loans and leases were designated to repay the securitized notes. Huntington services the loans
and leases and uses the proceeds from principal and interest payments to pay the securitized notes during the
amortization period. Huntington has not provided financial or other support that was not previously contractu-
ally required.
Trust-Preferred Securities
Huntington has certain wholly-owned trusts that are not consolidated. The trusts have been formed for the
sole purpose of issuing trust-preferred securities, from which the proceeds are then invested in Huntington
junior subordinated debentures, which are reflected in Huntington’s Consolidated Balance Sheet as subordi-
nated notes. The trust securities are the obligations of the trusts and are not consolidated within Huntington’s
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