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, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Carrying amount and classification of the trusts assets and liabilities

The following tables present the carrying amount and classification of the consolidated trusts’ assets and liabilities that were included in the Consolidated Balance Sheets at December 31, 2016 and 2015:



	December 31, 2016
	Huntington Technology Funding Trust			Other Consolidated VIEs		Total
(dollar amounts in thousands)		Series 2014A		Other Consolidated VIEs		Total
Assets:
Cash		$	1,564	$	—	$	1,564
Net loans and leases		69,825		—		69,825
Accrued income and other assets		—		281		281
Total assets		$	71,389	$	281	$	71,670
Liabilities:
Other long-term debt		$	57,494	$	—	$	57,494
Accrued interest and other liabilities		—		281		281
Total liabilities		57,494		281		57,775
Equity:
Beneficial Interest owned by third party		13,895		—		13,895
Total liabilities and equity		$	71,389	$	281	$	71,670



	December 31, 2015
	Huntington Technology Funding Trust				Other Consolidated VIEs		Total
(dollar amounts in thousands)	Series 2012A		Series 2014A		Other Consolidated VIEs		Total
Assets:
Cash	$	1,377	$	1,561	$	—	$	2,938
Net loans and leases	32,180		152,331		—		184,511
Accrued income and other assets	—		—		229		229
Total assets	$	33,557	$	153,892	$	229	$	187,678
Liabilities:
Other long-term debt	$	27,153	$	123,577	$	—	$	150,730
Accrued interest and other liabilities	—		—		229		229
Total liabilities	27,153		123,577		229		150,959
Equity:
Beneficial Interest owned by third party	$	6,404	$	30,315	—		36,719
Total liabilities and equity	$	33,557	$	153,892	$	229	$	187,678

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, 2016, and 2015:



	December 31, 2016
(dollar amounts in thousands)	Total Assets		Total Liabilities		Maximum Exposure to Loss
2016-1 Automobile Trust	$	14,770	$	—	$	14,770
2015-1 Automobile Trust	2,227		—		2,227
2012-1 Automobile Trust	—		—		—
2012-2 Automobile Trust	—		—		—
Trust Preferred Securities	13,919		252,552		—
Low Income Housing Tax Credit Partnerships	576,880		292,721		576,880
Other Investments	79,195		42,316		79,195
Total	$	686,991	$	587,589	$	673,072



	December 31, 2015
(dollar amounts in thousands)	Total Assets		Total Liabilities		Maximum Exposure to Loss
2015-1 Automobile Trust	$	7,695	$	—	$	7,695
2012-1 Automobile Trust	94		—		94
2012-2 Automobile Trust	771		—		771
Trust Preferred Securities	13,919		317,106		—
Low Income Housing Tax Credit Partnerships	425,500		196,001		425,500
Other Investments	68,746		25,762		68,746
Total	$	516,725	$	538,869	$	502,806

Summary of outstanding trust preferred securities

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



	At December 31,
(dollar amounts in thousands)	2016		2015
The Parent Company:
Senior Notes:
3.19% Huntington Bancshares Incorporated medium-term notes due 2021	$	972,625	$	—
2.33% Huntington Bancshares Incorporated senior note due 2022	953,674		—
2.64% Huntington Bancshares Incorporated senior note due 2018	399,278		399,169
Subordinated Notes:
7.00% Huntington Bancshares Incorporated subordinated notes due 2020	319,857		326,379
3.55% Huntington Bancshares Incorporated subordinated notes due 2023	248,156		—
Sky Financial Capital Trust IV 2.40% junior subordinated debentures due 2036 (1)	74,320		74,320
Sky Financial Capital Trust III 2.40% junior subordinated debentures due 2036 (1)	72,165		72,165
Huntington Capital I Trust Preferred 1.70% junior subordinated debentures due 2027 (2)	68,720		110,706
Huntington Capital II Trust Preferred 1.06% junior subordinated debentures due 2028 (3)	31,576		54,030
Camco Statutory Trust I 2.30% due 2037 (4)	4,244		4,212
Total notes issued by the parent	3,144,615		1,040,981
The Bank:
Senior Notes:
2.24% Huntington National Bank senior notes due 2018	843,568		841,313
2.10% Huntington National Bank senior notes due 2018	747,170		745,894
1.75% Huntington National Bank senior notes due 2018	499,732		501,006
1.43% Huntington National Bank senior note due 2019	499,686		498,678
2.23% Huntington National Bank senior note due 2017	499,445		500,416
2.43% Huntington National Bank senior notes due 2020	498,448		498,185
2.97% Huntington National Bank senior notes due 2020	495,088		495,998
1.42% Huntington National Bank senior notes due 2017 (5)	250,000		250,000
5.04% Huntington National Bank medium-term notes due 2018	36,351		37,469
1.31% Huntington National Bank senior note due 2016	—		498,360
1.40% Huntington National Bank senior note due 2016	—		349,399
Subordinated Notes:
3.86% Huntington National Bank subordinated notes due 2026	239,293		—
6.67% Huntington National Bank subordinated notes due 2018	131,910		136,227
5.45% Huntington National Bank subordinated notes due 2019	81,155		83,833
5.59% Huntington National Bank subordinated notes due 2016	—		103,357
Total notes issued by the bank	4,821,846		5,540,135
FHLB Advances:
3.47% weighted average rate, varying maturities greater than one year	7,540		7,800
Other:
Huntington Technology Finance nonrecourse debt, 3.43% effective interest rate, varying maturities	277,523		301,577
Huntington Technology Finance ABS Trust 2014 1.70% due 2020	57,494		123,577
Huntington Technology Finance ABS Trust 2012 1.79% due 2017	—		27,153
Other	141		141
Total other	335,158		452,448

Total long-term debt	$	8,309,159	$	7,041,364


(1)	Variable effective rate at December 31, 2016, based on three-month LIBOR +1.400%


(2)	Variable effective rate at December 31, 2016, based on three-month LIBOR +0.70%


(3)	Variable effective rate at December 31, 2016, based on three-month LIBOR +0.625%


(4)	Variable effective rate at December 31, 2016, based on three-month LIBOR +1.33%.


(5)	Variable effective rate at December 31, 2016, based on three-month LIBOR +0.425%.

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, 2016 follows:



(dollar amounts in thousands)	Rate			Principal amount of subordinated note/ debenture issued to trust (1)		Investment in unconsolidated subsidiary
Huntington Capital I	1.59	%	(2)	$	69,730	$	6,186
Huntington Capital II	1.59		(3)	32,093		3,093
Sky Financial Capital Trust III	2.40		(4)	72,165		2,165
Sky Financial Capital Trust IV	2.25		(4)	74,320		2,320
Camco Financial Trust	3.43		(5)	4,244		155
Total				$	252,552	$	13,919


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


(2)	Variable effective rate at December 31, 2016, based on three-month LIBOR + 0.70.


(3)	Variable effective rate at December 31, 2016, based on three-month LIBOR + 62.5.


(4)	Variable effective rate at December 31, 2016, based on three-month LIBOR + 1.40.


(5)	Variable effective rate (including impact of purchase accounting accretion) at December 31, 2016, 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

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
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-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 505
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-Section 50
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-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 942
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-URI http://asc.fasb.org/extlink&oid=6479336&loc=d3e64711-112823

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
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-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=64930739&loc=d3e28878-108400

Reference 6: http://www.xbrl.org/2003/role/presentationRef
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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Reference 8: http://www.xbrl.org/2003/role/presentationRef
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
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-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28551-108399

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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21521-112644

+ 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