Huntington National Bank 2014 Annual Report Download - page 156

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Subordinated Notes:
5.00% subordinated notes due 2014 --- 125,109
5.59% subordinated notes due 2016 105,731 108,038
6.67% subordinated notes due 2018 140,115 143,749
5.45% subordinated notes due 2019 85,783 87,214
Total notes issued by the bank 2,466,665 1,350,782
FHLB Advances:
0.21% weighted average rate, varying maturities greater than one year 758,052 8,293
Other:
Other 65,141 65,141
Total long-term debt $ 4,335,962 $ 2,458,272
(1) Variable effective rate at December 31, 2014, based on three month LIBOR + 0.70%.
(2) Variable effective rate at December 31, 2014, based on three month LIBOR + 0.625%.
(3) Variable effective rate at December 31, 2014, based on three month LIBOR + 1.40%.
(4) Variable effective rate at December 31, 2014, based on three month LIBOR + 1.33%.
(5) Variable effective rate at December 31, 2014, based on three month LIBOR + 0.425%.
Amounts above are net of unamortized discounts and adjustments related to hedging with derivative financial instruments. The
derivative instruments, principally interest rate swaps, are used to hedge the fair values of certain fixed-rate debt by converting the
debt to a variable rate. See Note 18 for more information regarding such financial instruments.
In April 2014, the Bank issued $500.0 million of senior notes at 99.842% of face value. The senior note issuances mature on April
24, 2017 and have a fixed coupon rate of 1.375%. In April 2014, the Bank also issued $250.0 million of senior notes at 100% of face
value. The senior bank note issuances mature on April 24, 2017 and have a variable coupon rate equal to the three-month LIBOR plus
0.425%. Both senior note issuances may be redeemed one month prior to their maturity date at 100% of principal plus accrued and
unpaid interest.
In February 2014, the Bank issued $500.0 million of senior notes at 99.842% of face value. The senior bank note issuances
mature on April 1, 2019 and have a fixed coupon rate of 2.20%. 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.
In August 2013, the parent company issued $400.0 million of senior notes at 99.80% of face value. The senior note issuances
mature on August 2, 2018 and have a fixed coupon rate of 2.60%. 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%. Both senior
note issuances may be redeemed one month prior to their maturity date at 100% of principal plus accrued and unpaid interest.
On July 2, 2013, the Federal Reserve Board voted to adopt final capital rules to implement Basel III requirements for U.S.
Banking organizations. The final rules establish an integrated regulatory capital framework that will implement, in the United States,
the Basel III regulatory capital reforms from the Basel Committee on Banking Supervision and certain changes required by the Dodd-
Frank Act. Based on our review of the final rules and an opinion of outside counsel, dated November 6, 2013, we have determined
that there is a significant risk that our Huntington Preferred Capital, Inc. 7.88% Class C preferred securities will no longer constitute
Tier 1 capital for the Bank for purposes of the capital adequacy guidelines or policies of the OCC, when Basel III becomes effective
for Huntington Bancshares Incorporated and its affiliates. As a result, a regulatory capital event has occurred. On November 7, 2013,
the board of directors approved the redemption of Class C preferred securities and on December 31, 2013 (the Redemption Date),
Huntington Preferred Capital, Inc. redeemed all of the Class C Preferred Securities at the redemption price of $25.00 per share.