Huntington National Bank 2010 Annual Report Download - page 99

to borrow if necessary, and unused borrowing capacity at both the Federal Reserve Bank and the FHLB is
outlined in the following table:
Table 40 — Federal Reserve Bank and FHLB-Cincinnati Borrowing Capacity
2010 2009
December 31,
(Dollar amounts in billions)
Loans and Securities Pledged:
Federal Reserve Bank ............................................. $ 9.7 $ 8.5
FHLB ........................................................ 7.8 8.0
Total loans and securities pledged .................................... $17.5 $16.5
Total unused borrowing capacity at Federal Reserve Bank and FHLB ........... $ 8.8 $ 7.9
We can also obtain funding through other methods including: (1) purchasing federal funds, (2) selling
securities under repurchase agreements, (3) selling or maturity of investment securities, (4) selling or
securitization of loans, (5) selling of national market certificates of deposit, (6) the relatively shorter-term
structure of our commercial loans (see tables below) and automobile loans, and (7) issuing of common and
preferred stock.
At December 31, 2010, we believe the Bank had sufficient liquidity to meet its cash flow obligations for
the foreseeable future.
Table 41 — Maturity Schedule of Commercial Loans
One Year
or Less
One to
Five Years
After
Five Years Total
Percent of
total
December 31, 2010
(Dollar amounts in millions)
Commercial and industrial ................. $4,736 $6,589 $1,738 $13,063 67%
Commercial real estate — construction ........ 418 226 6 650 3
Commercial real estate — commercial ........ 2,510 2,763 728 6,001 30
Total................................... $7,664 $9,578 $2,472 $19,714 100%
Variable-interest rates ..................... $7,223 $7,818 $2,043 $17,084 87%
Fixed-interest rates....................... 441 1,760 429 2,630 13
Total................................... $7,664 $9,578 $2,472 $19,714 100%
Percent of total .......................... 39% 49% 12% 100%
At December 31, 2010, the fair value of our portfolio of investment securities was $9.9 billion, of which
$4.7 billion was pledged to secure public and trust deposits, interest rate swap agreements, U.S. Treasury
demand notes, and securities sold under repurchase agreements. The composition and maturity of these
securities were presented in Table 32.
Parent Company Liquidity
The parent company’s funding requirements consist primarily of dividends to shareholders, debt service,
income taxes, operating expenses, funding of nonbank subsidiaries, repurchases of our stock, and acquisitions.
The parent company obtains funding to meet obligations from dividends received from direct subsidiaries, net
taxes collected from subsidiaries included in the federal consolidated tax return, fees for services provided to
subsidiaries, and the issuance of debt securities.
During the 2010 fourth quarter, we completed a public offering and sale of 146.0 million shares of
common stock at a price of $6.30 per share, or $920.0 million in aggregate gross proceeds. Also during the
2010 fourth quarter, we completed the public offering and sale of $300.0 million aggregate principal amount
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