Annual report pursuant to Section 13 and 15(d)

Subordinated Notes

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Subordinated Notes
 12 Months Ended
Dec. 31, 2011
Subordinated Notes [Abstract]  
Subordinated Notes [Text Block]

12. Subordinated Notes

 

At December 31, Huntington's subordinated notes consisted of the following:

    At December 31,
(dollar amounts in thousands)   2011     2010
           
Parent company:          
6.21% subordinated notes due 2013 $ 49,482   $ 49,095
7.00% subordinated notes due 2020   344,347     308,289
1.13% junior subordinated debentures due 2027 (1)   111,816     138,816
1.17% junior subordinated debentures due 2028 (2)   54,593     60,093
8.54% junior subordinated debentures due 2029   23,192     23,248
8.56% junior subordinated debentures due 2030   64,194     64,474
3.34% junior subordinated debentures due 2033 (3)   30,929     30,929
3.65% junior subordinated debentures due 2033 (4)   6,186     6,186
1.77% junior subordinated debentures due 2036 (5)   72,165     77,481
1.77% junior subordinated debentures due 2036 (5)   77,320     77,482
6.69% junior subordinated debentures due 2067 (6)   114,101     114,072
The Huntington National Bank:          
6.21% subordinated notes due 2012   64,959     64,909
5.00% subordinated notes due 2014   134,225     136,639
5.59% subordinated notes due 2016   111,953     112,420
6.67% subordinated notes due 2018   151,444     147,071
5.45% subordinated notes due 2019   92,462     86,012
Total subordinated notes $ 1,503,368   $ 1,497,216
           
(1) Variable effective rate at December 31, 2011, based on three month LIBOR + 0.70.
(2) Variable effective rate at December 31, 2011, based on three month LIBOR + 0.625.
(3) Variable effective rate at December 31, 2011, based on three month LIBOR + 2.95.
(4) Variable effective rate at December 31, 2011, based on three month LIBOR + 3.25.
(5) Variable effective rate at December 31, 2011, based on three month LIBOR + 1.40.
(6) The junior subordinated debentures due 2067 are subordinate to all other junior subordinated debentures.

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 match the funding rates on certain assets to hedge the interest rate values of certain fixed-rate debt by converting the debt to a variable rate. See Note 20 for more information regarding such financial instruments. All principal is due upon maturity of the note as described in the table above.

 

During 2011, Huntington retired $36.1 million of junior subordinated debentures, including $32.5 million of junior subordinated debentures related to the Preferred Stock Exchange Offer, which resulted in net pre-tax gains of $9.7 million. Huntington anticipates exchanging an additional $3.0 million of trust preferred securities and retiring the related subordinated debt obligation in the first quarter of 2012. In 2009, Huntington repurchased and retired $702.4 million of junior subordinated debentures, bank subordinated notes, and medium-term notes resulting in net pre-tax gains of $147.4 million. These transactions have been recorded as gains on early extinguishment of debt, a reduction of noninterest expense, in the Consolidated Financial Statements.