Huntington National Bank 2013 Annual Report Download - page 182

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176
All derivatives are carried on the Consolidated Balance Sheets at fair value. Derivative balances are presented on a net basis
taking into consideration the effects of legally enforceable master netting agreements. Cash collateral exchanged with counterparties
is also netted against the applicable derivative fair values. Huntington enters into derivative transactions with two primary groups:
broker-dealers and banks, and Huntington’s customers. Different methods are utilized for managing counterparty credit exposure and
credit risk for each of these groups.
Huntington enters into transactions with broker-dealers and banks for various risk management purposes. These types of
transactions generally are high dollar volume. Huntington enters into bilateral collateral and master netting agreements with these
counterparties, and routinely exchange cash and high quality securities collateral with these counterparties. Huntington enters into
transactions with customers to meet their financing, investing, payment and risk management needs. These types of transactions
generally are low dollar volume. Huntington generally enters into master netting agreements with customer counterparties, however
collateral is generally not exchanged with customer counterparties.
At December 31, 2013 and December 31, 2012, aggregate credit risk associated with these derivatives, net of collateral that has
been pledged by the counterparty, was $15.2 million and $17.4 million, respectively. The credit risk associated with interest rate
swaps is calculated after considering master netting agreements with broker-dealers and banks.
At December 31, 2013, Huntington pledged $113.7 million of investment securities and cash collateral to counterparties, while
other counterparties pledged $98.2 million of investment securities and cash collateral to Huntington to satisfy collateral netting
agreements. In the event of credit downgrades, Huntington would not be required to provide additional collateral.
The following tables present the gross amounts of these assets and liabilities with any offsets to arrive at the net amounts recognized in
the Consolidated Balance Sheets at December 31, 2013 and December 31, 2012:
Offsetting of Financial Assets and Derivative Assets
Gross amounts not offset in
the consolidated balance
sheets
(dollar amounts in thousands)
Gross amounts
of recognized
assets
Gross amounts
offset in the
consolidated
balance sheets
N
et amounts o
f
assets
presented in
the
consolidated
balance sheets
Financial
instruments
cash collateral
received Net amount
Offsetting of Financial Assets and Derivative Assets
December 31, 2013 Derivatives $ 300,903 $ (111,458)$ 189,445 $ (35,205)$ (360)$ 153,880
December 31, 2012 Derivatives 473,374 (101,620) 371,754 (62,409) (755) 308,590
Offsetting of Financial Liabilities and Derivative Liabilities
Gross amounts not offset in
the consolidated balance
sheets
(dollar amounts in thousands)
Gross amounts
of recognized
liabilities
Gross amounts
offset in the
consolidated
balance sheets
N
et amounts o
f
assets
presented in
the
consolidated
balance sheets
Financial
instruments
cash collateral
received Net amount
Offsetting of Financial Liabilities and Derivative Liabilities
December 31, 2013 Derivatives $ 196,397 $ (76,539)$ 119,858 $ (86,204)$ 290 $ 33,944
December 31, 2012 Derivatives 235,664 (85,667) 149,997 (97,233) (455) 52,309