Huntington Bancshares Incorporated Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

VIEs (Tables)

VIEs (Tables)

12 Months Ended

Dec. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Carrying amount and classification of the trusts assets and liabilities

The following tables provide a summary of the assets and liabilities included in Huntington’s Consolidated Financial Statements, as well as the maximum exposure to losses, associated with its interests related to unconsolidated VIEs for which Huntington holds an interest, but is not the primary beneficiary, to the VIE at December 31, 2018, and 2017:



	December 31, 2018
(dollar amounts in millions)	Total Assets		Total Liabilities		Maximum Exposure to Loss
Trust Preferred Securities	14		252		—
Affordable Housing Tax Credit Partnerships	708		357		708
Other Investments	126		53		126
Total	$	848	$	662	$	834



	December 31, 2017
(dollar amounts in millions)	Total Assets		Total Liabilities		Maximum Exposure to Loss
Trust Preferred Securities	14		252		—
Affordable Housing Tax Credit Partnerships	636		335		636
Other Investments	125		53		125
Total	$	775	$	640	$	761

Summary of outstanding trust preferred securities

Huntington’s long-term debt consisted of the following:



	At December 31,
(dollar amounts in millions)	2018		2017
The Parent Company:
Senior Notes:
3.19% Huntington Bancshares Incorporated medium-term notes due 2021	$	969	$	969
2.33% Huntington Bancshares Incorporated senior notes due 2022	946		953
4.00% Huntington Bancshares Incorporated senior notes due 2025	507		—
2.64% Huntington Bancshares Incorporated senior notes due 2018	—		399
Subordinated Notes:
7.00% Huntington Bancshares Incorporated subordinated notes due 2020	305		312
3.55% Huntington Bancshares Incorporated subordinated notes due 2023	239		245
Sky Financial Capital Trust IV 4.20% junior subordinated debentures due 2036 (1)	74		74
Sky Financial Capital Trust III 4.20% junior subordinated debentures due 2036 (1)	72		72
Huntington Capital I Trust Preferred 3.50% junior subordinated debentures due 2027 (2)	69		69
Huntington Capital II Trust Preferred 3.42% junior subordinated debentures due 2028 (3)	31		31
Camco Financial Statutory Trust I 4.13% due 2037 (4)	4		4
Total notes issued by the parent	3,216		3,128
The Bank:
Senior Notes:
3.55% Huntington National Bank senior notes due 2023	756		—
3.25% Huntington National Bank senior notes due 2021	750		—
2.47% Huntington National Bank senior notes due 2020	692		694
2.55% Huntington National Bank senior notes due 2022	672		685
2.23% Huntington National Bank senior notes due 2019	498		497
2.43% Huntington National Bank senior notes due 2020	493		498
2.97% Huntington National Bank senior notes due 2020	491		492
3.31% Huntington National Bank senior notes due 2020 (5)	300		300
2.24% Huntington National Bank senior notes due 2018	—		844
2.10% Huntington National Bank senior notes due 2018	—		748
1.75% Huntington National Bank senior notes due 2018	—		496
5.04% Huntington National Bank medium-term notes due 2018	—		35
Subordinated Notes:
3.86% Huntington National Bank subordinated notes due 2026	229		238
5.45% Huntington National Bank subordinated notes due 2019	76		77
6.67% Huntington National Bank subordinated notes due 2018	—		129
Total notes issued by the bank	4,957		5,733
FHLB Advances:
3.12% weighted average rate, varying maturities greater than one year	6		7
Other:
Huntington Technology Finance nonrecourse debt, 4.19% effective interest rate, varying maturities	322		263
4.68% Huntington Preferred Capital II - Class F securities (6)	74		75
4.68% Huntington Preferred Capital II - Class G securities (6)	50		—
Total other	446		338
Total long-term debt	$	8,625	$	9,206


(1)	Variable effective rate at December 31, 2018, based on three-month LIBOR +1.40%.


(2)	Variable effective rate at December 31, 2018, based on three-month LIBOR +0.70%


(3)	Variable effective rate at December 31, 2018, based on three-month LIBOR +0.625%.


(4)	Variable effective rate at December 31, 2018, based on three-month LIBOR +1.33%.


(5)	Variable effective rate at December 31, 2018, based on three-month LIBOR + 0.51%


(6)	Variable effective rate at December 31, 2018, based on three-month LIBOR +1.88%.

The trust securities are the obligations of the trusts, and as such, are not consolidated within Huntington’s Consolidated Financial Statements.

A list of trust-preferred securities outstanding at December 31, 2018 follows:



(dollar amounts in millions)	Rate			Principal amount of subordinated note/ debenture issued to trust (1)		Investment in unconsolidated subsidiary
Huntington Capital I	3.50	%	(2)	$	70	$	6
Huntington Capital II	3.42		(3)	32		3
Sky Financial Capital Trust III	4.20		(4)	72		2
Sky Financial Capital Trust IV	4.20		(4)	74		2
Camco Financial Trust	4.13		(5)	4		1
Total				$	252	$	14


(1)	Represents the principal amount of debentures issued to each trust, including unamortized original issue discount.


(2)	Variable effective rate at December 31, 2018, based on three-month LIBOR + 0.70%.


(3)	Variable effective rate at December 31, 2018, based on three-month LIBOR + 0.625%.


(4)	Variable effective rate at December 31, 2018, based on three-month LIBOR + 1.40%.


(5)	Variable effective rate at December 31, 2018, based on three month LIBOR + 1.33%.

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

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+ Details

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References + Details