Huntington Bancshares Incorporated Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

VIEs (Tables)

VIEs (Tables)

6 Months Ended

Jun. 30, 2017

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 Unaudited Condensed 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 June 30, 2017, and December 31, 2016:



	June 30, 2017
(dollar amounts in thousands)	Total Assets		Total Liabilities		Maximum Exposure to Loss
2016-1 Automobile Trust	$	10,464	$	—	$	10,464
2015-1 Automobile Trust	2,046		—		2,046
Trust Preferred Securities	13,919		252,568		—
Low Income Housing Tax Credit Partnerships	615,691		327,793		615,691
Other Investments	110,318		55,026		110,318
Total	$	752,438	$	635,387	$	738,519



	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
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

The following tables present the carrying amount and classification of the consolidated trusts’ assets and liabilities that were included in the Unaudited Condensed Consolidated Balance Sheets at June 30, 2017 and December 31, 2016:



	June 30, 2017
	Huntington Technology Funding Trust		Other Consolidated VIEs		Total
(dollar amounts in thousands)	Series 2014A		Other Consolidated VIEs		Total
Assets:
Cash	$	1,566	$	—	$	1,566
Net loans and leases	43,039		—		43,039
Accrued income and other assets	—		271		271
Total assets	$	44,605	$	271	$	44,876
Liabilities:
Other long-term debt	$	36,040	$	—	$	36,040
Accrued interest and other liabilities	—		271		271
Total liabilities	36,040		271		36,311
Equity:
Beneficial Interest owned by third party	8,565		—		8,565
Total liabilities and equity	$	44,605	$	271	$	44,876



	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

Summary of Outstanding Trust Preferred Securities

A list of trust preferred securities outstanding at June 30, 2017 follows:



(dollar amounts in thousands)	Rate			Principal amount of subordinated note/ debenture issued to trust (1)		Investment in unconsolidated subsidiary
Huntington Capital I	1.87	%	(2)	$	69,730	$	6,186
Huntington Capital II	1.87		(3)	32,093		3,093
Sky Financial Capital Trust III	2.70		(4)	72,165		2,165
Sky Financial Capital Trust IV	2.55		(4)	74,320		2,320
Camco Financial Trust	3.69		(5)	4,260		155
Total				$	252,568	$	13,919


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


(2)	Variable effective rate at June 30, 2017, based on three-month LIBOR +0.70%.


(3)	Variable effective rate at June 30, 2017, based on three-month LIBOR +0.625%.


(4)	Variable effective rate at June 30, 2017, based on three-month LIBOR +1.40%.


(5)	Variable effective rate at June 30, 2017, based on three-month LIBOR +1.33%.

Affordable housing tax credit investments

The following table presents the balances of Huntington’s affordable housing tax credit investments and related unfunded commitments at June 30, 2017 and December 31, 2016:



(dollar amounts in thousands)	June 30, 2017			December 31, 2016
Affordable housing tax credit investments	$	942,769		$	877,237
Less: amortization	(327,078		)	(300,357		)
Net affordable housing tax credit investments	$	615,691		$	576,880
Unfunded commitments	$	327,793		$	292,721

The following table presents other information relating to Huntington’s affordable housing tax credit investments for the three-month and six-month periods ended June 30, 2017 and 2016:



	Three Months Ended June 30,				Six Months Ended June 30,
(dollar amounts in thousands)	2017		2016		2017		2016
Tax credits and other tax benefits recognized	$	22,671	$	18,150	$	45,955	$	36,434
Proportional amortization method
Tax credit amortization expense included in provision for income taxes	17,220		12,499		34,182		24,905
Equity method
Tax credit investment (gains) losses included in non-interest income	—		132		109		264

- 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