Huntington National Bank 2013 Annual Report Download - page 68

62
Average amount outstanding during the period
Federal Funds purchased and securities sold under agreements to repurchase $ 692 $1,293 $2,009 $1,375 $ 903
Other short-term borrowings 8 17 46 70 30
Weighted average interest rate during the period
Federal Funds purchased and securities sold under agreements to repurchase 0.08 % 0.14 % 0.16 % 0.19 % 0.21 %
Other short-term borrowings 1.79 1.36 0.59 0.43 1.47
To the extent we are unable to obtain sufficient liquidity through core deposits, we may meet our liquidity needs through sources
of wholesale funding or asset securitization or sale. Sources of wholesale funding include other domestic time deposits of $250,000 or
more, brokered deposits and negotiable CDs, deposits in foreign offices, short-term borrowings, FHLB advances, other long-term
debt, and subordinated notes. At December 31, 2013, total wholesale funding was $7.0 billion, an increase from $5.2 billion at
December 31, 2012. The increase from prior year primarily relates to an increase in other long-term debt and FHLB borrowings,
partially offset by a decrease in subordinated notes and short-term borrowings. The amounts included in wholesale funding at
December 31, 2013, had a weighted average maturity of 2.95 years.
In August 2013, the Bank issued $350.0 million of senior notes at 99.865% of face value. The senior bank note issuances mature
on August 2, 2016 and have a fixed coupon rate of 1.35%. The senior note issuance may be redeemed one month prior to the maturity
date at 100% of principal plus accrued and unpaid interest.
In November 2013, the Bank issued $500.0 million of senior notes at 99.979% of face value. The senior bank note issuances
mature on November 20, 2016 and have a fixed coupon rate of 1.30%. The senior note issuance may be redeemed one month prior to
the maturity date at 100% of principal plus accrued and unpaid interest.
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 table below) and automobile loans, and (7)
issuing of common and preferred stock.
The Bank also has access to the Federal Reserve's discount window. These borrowings are secured by commercial loans and
home equity lines-of-credit. The Bank is also a member of the FHLB, and as such, has access to advances from this facility. These
advances are generally secured by residential mortgages, other mortgage-related loans, and available-for-sale securities.
At December 31, 2013, we believe the Bank had sufficient liquidity to meet its cash flow obligations for the foreseeable future.
Table 28 - Maturity Schedule of Commercial Loans
December 31, 2013
One Year One to After
Percent
of
(dollar amounts in millions) or Less Five Years Five Years Total total
Commercial and industrial $ 4,640 $ 9,689 $ 3,265 $ 17,594 78 %
Commercial real estate - construction 193 318 46 557 3
Commercial real estate - commercial 1,305 2,558 430 4,293 19
Total $ 6,138 $ 12,565 $ 3,741 $ 22,444 100 %
Variable-interest rates $ 5,582 $ 10,057 $ 2,429 $ 18,068 81 %
Fixed-interest rates 556 2,508 1,312 4,376 19
Total $ 6,138 $ 12,565 $ 3,741 $ 22,444 100 %
Percent of total 27 % 56 % 17 % 100 %
At December 31, 2013, AFS securities, with a fair value of $2.6 billion, were pledged to secure public and trust deposits, interest
rate swap agreements, U.S. Treasury demand notes, and securities sold under repurchase agreements.