Huntington National Bank 2011 Annual Report Download - page 213

Unconsolidated VIEs
The following table provides a summary of assets and liabilities included on Huntington’s Consolidated
Financial Statements, as well as the maximum exposure to losses associated with its’ interests, related to
unconsolidated VIEs for which Huntington holds an interest, but is not the primary beneficiary to the VIE.
The included amount of assets and liabilities on Huntington’s Consolidated Financial Statements, as well as
Huntington’s maximum exposure to losses, associated with its’ interests in the VIEs for the years ended
December 31, 2011 and 2010 were as follows:
December 31, 2011
(dollar amounts in thousands) Total Assets Total Liabilities Maximum Exposure to Loss
2011 Automobile Trust ........................... $ 13,377 $ — $ 13,377
Tower Hill Securities, Inc. ........................ 90,514 65,000 90,514
Trust-Preferred Securities ........................ 17,364 554,496 —
Low Income Housing Tax Credit Partnerships ....... 376,098 157,754 376,098
Total .......................................... $497,353 $777,250 $479,989
December 31, 2010
(dollar amounts in thousands) Total Assets Total Liabilities Maximum Exposure to Loss
Tower Hill Securities, Inc. ......................... $ 89,550 $ 65,000 $ 89,550
Trust-Preferred Securities .......................... 17,519 592,781 —
Low Income Housing Tax Credit Partnerships ......... 315,983 145,003 315,983
Total .......................................... $423,052 $802,784 $405,533
2011 AUTOMOBILE TRUST
During the 2011 third quarter, we transferred automobile loans totaling $1.0 billion to a trust in a
securitization transaction. The securitization qualified for sale accounting. Huntington has concluded that it is not
the primary beneficiary of this trust because it has neither the obligation to absorb losses of the entity that could
potentially be significant to the VIE nor the right to receive benefits from the entity that could potentially be
significant to the VIE. Huntington is not required and does not currently intend to provide any additional
financial support to the trust. Investors and creditors only have recourse to the assets held by the trust. The
interest Huntington holds in the VIE relates to servicing rights which are included within accrued income and
other assets of Huntington’s Consolidated Balance Sheets. The maximum exposure to loss is equal to the
carrying value of the servicing asset.
TOWER HILL SECURITIES, INC.
In 2010, we transferred approximately $92.1 million of municipal securities, $86.0 million in Huntington
Preferred Capital, Inc. (Real Estate Investment Trust) Class E Preferred Stock and cash of $6.1 million to Tower
Hill Securities, Inc. in exchange for $184.1 million of Common and Preferred Stock of Tower Hill Securities,
Inc. The municipal securities and the REIT Shares will be used to satisfy $65.0 million of mandatorily
redeemable securities issued by Tower Hill Securities, Inc. and are not available to satisfy the general debts and
obligations of Huntington or any consolidated affiliates. The transfer was recorded as a secured financing.
Interests held by Huntington consist of municipal securities within available for sale and other securities and
Series B preferred securities within other long term debt of Huntington’s Consolidated Balance Sheets. The
maximum exposure to loss is equal to the carrying value of the municipal securities.
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