Huntington National Bank 2011 Annual Report Download - page 93

Off-Balance Sheet Arrangements
In the normal course of business, we enter into various off-balance sheet arrangements. These arrangements
include financial guarantees contained in standby letters of credit issued by the Bank and commitments by the
Bank to sell mortgage loans.
Standby letters of credit are conditional commitments issued to guarantee the performance of a customer to
a third party. These guarantees are primarily issued to support public and private borrowing arrangements,
including commercial paper, bond financing, and similar transactions. Most of these arrangements mature within
two years and are expected to expire without being drawn upon. Standby letters of credit are included in the
determination of the amount of risk-based capital that the parent company and the Bank are required to hold.
Through our credit process, we monitor the credit risks of outstanding standby letters of credit. When it is
probable that a standby letter of credit will be drawn and not repaid in full, losses are recognized in the provision
for credit losses. At December 31, 2011, we had $0.6 billion of standby letters of credit outstanding, of which
80% were collateralized. Included in this $0.6 billion total are letters of credit issued by the Bank that support
securities that were issued by our customers and remarketed by the Huntington Investment Company, our broker-
dealer subsidiary.
We enter into forward contracts relating to the mortgage banking business to hedge the exposures we have
from commitments to extend new residential mortgage loans to our customers and from our mortgage loans held
for sale. At December 31, 2011, and December 31, 2010, we had commitments to sell residential real estate loans
of $629.0 million and $998.7 million, respectively. These contracts mature in less than one year.
We do not believe that off-balance sheet arrangements will have a material impact on our liquidity or capital
resources.
Table 33 — Contractual Obligations(1)
December 31, 2011
One Year
or Less
1to3
Years
3to5
Years
More than
5 Years Total
(dollar amounts in millions)
Deposits without a stated maturity .................... $33,728 $ — $ — $ — $33,728
Certificates of deposit and other time deposits .......... 5,850 3,122 342 238 9,552
FHLB advances .................................. 350 5 — 8 363
Short-term borrowings ............................. 1,441 — — — 1,441
Other long-term debt .............................. 600 139 — 484 1,223
Subordinated notes ................................ 65 184 112 1,143 1,504
Operating lease obligations ......................... 44 83 74 250 451
Purchase commitments ............................. 201 173 78 35 487
Pension minimum funding requirement(2) .............. — 42 86 —(3) 128
(1) Amounts do not include associated interest payments.
(2) These amounts represent our estimated minimum pension contributions to our qualified plan required under
ERISA and the Pension Protection Act of 2006, as well as contributions necessary to avoid benefit
restrictions and at-risk status. These amounts represent estimates that are based on assumptions that are
subject to change. The minimum required contributions for years after 2016 are currently not reliably
estimable. See Note 18 to the Notes to Consolidated Financial Statements for further information regarding
the pension plan.
(3) The minimum required contributions for years after 2016 are currently not reliably estimable.
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