Huntington National Bank 2014 Annual Report Download - page 74

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The following table presents certain regulatory capital data at both the consolidated and Bank levels for the past five years:
Table 32 - Regulatory Capital Data (1)
At December 31,
(dollar amounts in millions) 2014 2013 2012 2011 2010
Total risk-weighted assets Consolidated $54,479 $49,690 $47,773 $45,891 $43,471
Bank 54,387 49,609 47,676 45,651 43,281
Tier 1 risk-based capital Consolidated 6,266 6,100 5,741 5,557 5,022
Bank 6,136 5,682 5,003 4,245 3,683
Tier 2 risk-based capital Consolidated 1,122 1,139 1,187 1,221 1,263
Bank 820 838 1,091 1,508 1,866
Total risk-based capital Consolidated 7,388 7,239 6,928 6,778 6,285
Bank 6,956 6,520 6,094 5,753 5,549
Tier 1 leverage ratio Consolidated 9.74 % 10.67 % 10.36 % 10.28 % 9.41 %
Bank 9.56 9.97 9.05 7.89 6.97
Tier 1 risk-based capital ratio Consolidated 11.50 12.28 12.02 12.11 11.55
Bank 11.28 11.45 10.49 9.30 8.51
Total risk-based capital ratio Consolidated 13.56 14.57 14.50 14.77 14.46
Bank 12.79 13.14 12.78 12.60 12.82
(1) In accordance with applicable regulatory reporting guidance, we are not required to retrospectively update historical filings for newly
adopted accounting principles. Therefore, regulatory capital data has not been updated for the adoption of ASU 2014-01.
The decreases in the capital ratios were due to balance sheet growth and share repurchases that were partially offset by retained
earnings and the 8.7 million common shares issued in the Camco Financial acquisition. Specifically, all capital ratios were impacted
by the repurchase of 35.7 million common shares in 2014.
Shareholders’ Equity
We generate shareholders’ equity primarily through the retention of earnings, net of dividends. Other potential sources of
shareholders’ equity include issuances of common and preferred stock. Our objective is to maintain capital at an amount
commensurate with our risk profile and risk tolerance objectives, to meet both regulatory and market expectations, and to provide the
flexibility needed for future growth and business opportunities. Shareholders’ equity totaled $6.3 billion at December 31, 2014,
representing a $0.2 billion, or 4%, increase compared with December 31, 2013, primarily due to an increase in retained earnings offset
by share repurchases.
Dividends
We consider disciplined capital management as a key objective, with dividends representing one component. Our strong capital
ratios and expectations for continued earnings growth positions us to continue to actively explore additional capital management
opportunities.
On January 22, 2015, our board of directors declared a quarterly cash dividend of $0.06 per common share, payable on April 1,
2015. Also, cash dividends of $0.06 per common share were declared on October 15, 2014, and $0.05 per common share were
declared on July 16, 2014, April 16, 2014 and January 16, 2014. Our 2014 capital plan to the FRB included the continuation of our
current common dividend through the 2015 first quarter.
On January 22, 2015, our board of directors also declared a quarterly cash dividend on our 8.50% Series A Non-Cumulative
Perpetual Convertible Preferred Stock of $21.25 per share. The dividend is payable on April 15, 2015. Cash dividends of $21.25 per
share were also declared on October 15, 2014, July 16, 2014, April 16, 2014 and January 16, 2014.