Huntington National Bank 2015 Annual Report Download - page 34

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3. Legislative and regulatory actions taken now or in the future that impact the financial industry may materially adversely
affect us by increasing our costs, adding complexity in doing business, impeding the efficiency of our internal business
processes, negatively impacting the recoverability of certain of our recorded assets, requiring us to increase our regulatory
capital, limiting our ability to pursue business opportunities, and otherwise resulting in a material adverse impact on our
financial condition, results of operation, liquidity, or stock price.
The Dodd-Frank Act represents a comprehensive overhaul of the financial services industry within the United States, establishes
the CFPB, and requires the bureau and other federal agencies to implement many new and significant rules and regulations. It is not
possible to predict the full extent to which the Dodd-Frank Act, or the resulting rules and regulations in their entirety, will impact our
business. Compliance with these new laws and regulations have and will continue to result in additional costs, which could be
significant, and may have a material and adverse effect on our results of operations. In addition, if we do not appropriately comply
with current or future legislation and regulations that apply to our consumer operations, we may be subject to fines, penalties or
judgments, or material regulatory restrictions on our businesses, which could adversely affect operations and, in turn, financial results.
4. We may become subject to more stringent regulatory requirements and activity restrictions if the Federal Reserve and
FDIC determine that our resolution plan is not credible.
The Dodd-Frank Act and implementing regulations jointly issued by Federal Reserve and the FDIC require bank holding
companies with more than $50 billion in assets to annually submit a resolution plan to the Federal Reserve and the FDIC that, in the
event of material financial distress or failure, establish the rapid, orderly resolution of the Company under the U.S. Bankruptcy Code.
If the Federal Reserve and the FDIC jointly determine that our 2015 resolution plan is not “credible,” we could become subjected to
more stringent capital, leverage or liquidity requirements or restrictions, or restrictions on our growth, activities or operations, and
could eventually be required to divest certain assets or operations in ways that could negatively impact its operations and strategy.
5. Our business, financial condition, and results of operations could be adversely affected if we lose our financial holding
company status.
In order for us to maintain our status as a financial holding company, we and the Bank must remain “well capitalized,” and “well
managed.” If we or our Bank cease to meet the requirements necessary for us to continue to qualify as a financial holding company,
the Federal Reserve may impose upon us corrective capital and managerial requirements, and may place limitations on our ability to
conduct all of the business activities that we conduct as a financial holding company. If the failure to meet these standards persists, we
could be required to divest our Bank, or cease all activities other than those activities that may be conducted by bank holding
companies that are not financial holding companies. In addition, our ability to commence or engage in certain activities as a financial
holding company will be restricted if the Bank fails to maintain at least a “Satisfactory” rating on its most recent Community
Reinvestment Act examination.
Item 1B: Unresolved Staff Comments
None.
Item 2: Properties
Our headquarters, as well as the Bank’s, is located in the Huntington Center, a thirty seven story office building located in
Columbus, Ohio. Of the building’s total office space available, we lease approximately 28%. The lease term expires in 2030, with six
five-year renewal options for up to 30 years but with no purchase option. The Bank has an indirect minority equity interest of 18.4% in
the building.
Our other major properties consist of the following: