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, 2019

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 in, but is not the primary beneficiary of, the VIE at December 31, 2019, and 2018:



	December 31, 2019
(dollar amounts in millions)	Total Assets		Total Liabilities		Maximum Exposure to Loss
Trust Preferred Securities	$	14	$	252	$	—
Affordable Housing Tax Credit Partnerships	727		332		727
Other Investments	179		63		179
Total	$	920	$	647	$	906



	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

Summary of outstanding trust preferred securities

The following table presents senior notes issued during 2019:

Date of Issuance

Issuer

Amount

% of face value

Interest Rate

Term

Maturity

January 2019

Bank

300

million

100

three-month LIBOR + 0.55%

variable

February 5, 2021

February 2019

Bank

500

million

99.909

3.125

fixed

April 1, 2022

August 2019

Parent

800

million

99.781

2.625

fixed

August 6, 2024

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



	At December 31,
(dollar amounts in millions)	2019		2018
The Parent Company:
Senior Notes:
3.19% Huntington Bancshares Incorporated medium-term notes due 2021	$	993	$	969
2.33% Huntington Bancshares Incorporated senior notes due 2022	972		946
2.67% Huntington Bancshares Incorporated senior notes due 2024	798		—
4.05% Huntington Bancshares Incorporated senior notes due 2025	528		507
Subordinated Notes:
7.00% Huntington Bancshares Incorporated subordinated notes due 2020	305		305
3.55% Huntington Bancshares Incorporated subordinated notes due 2023	247		239
Sky Financial Capital Trust IV 3.31% junior subordinated debentures due 2036 (1)	74		74
Sky Financial Capital Trust III 3.31% junior subordinated debentures due 2036 (1)	72		72
Huntington Capital I Trust Preferred 2.61% junior subordinated debentures due 2027 (2)	70		69
Huntington Capital II Trust Preferred 2.53% junior subordinated debentures due 2028 (3)	32		31
Camco Financial Statutory Trust I 3.24% due 2037 (4)	4		4
Total notes issued by the parent	4,095		3,216
The Bank:
Senior Notes:
3.60% Huntington National Bank senior notes due 2023	778		756
3.33% Huntington National Bank senior notes due 2021	759		750
2.47% Huntington National Bank senior notes due 2020	699		692
2.55% Huntington National Bank senior notes due 2022	691		672
3.16% Huntington National Bank senior notes due 2022	507		—
2.43% Huntington National Bank senior notes due 2020	500		493
2.97% Huntington National Bank senior notes due 2020	499		491
2.42% Huntington National Bank senior notes due 2020 (5)	300		300
2.46% Huntington National Bank senior notes due 2021 (6)	299		—
2.23% Huntington National Bank senior notes due 2019	—		498
Subordinated Notes:
3.86% Huntington National Bank subordinated notes due 2026	231		229
5.45% Huntington National Bank subordinated notes due 2019	—		76
Total notes issued by the bank	5,263		4,957
FHLB Advances:
3.01% weighted average rate, varying maturities greater than one year	5		6
Other:
Huntington Technology Finance nonrecourse debt, 4.08% weighted average interest rate, varying maturities	312		322
3.79% Huntington Preferred Capital II - Class F securities (7)	74		74
3.79% Huntington Preferred Capital II - Class G securities (7)	50		50
3.91% Huntington Preferred Capital II - Class I securities (8)	50		—
Total other	486		446
Total long-term debt	$	9,849	$	8,625


(1)	Variable effective rate at December 31, 2019, based on three-month LIBOR +1.40%.


(2)	Variable effective rate at December 31, 2019, based on three-month LIBOR +0.70%


(3)	Variable effective rate at December 31, 2019, based on three-month LIBOR +0.625%.


(4)	Variable effective rate at December 31, 2019, based on three-month LIBOR +1.33%.


(5)	Variable effective rate at December 31, 2019, based on three-month LIBOR + 0.51%


(6)	Variable effective rate at December 31, 2019, based on three-month LIBOR +0.55%.


(7)	Variable effective rate at December 31, 2019, based on three-month LIBOR +1.88%.

(8)

Variable effective rate at December 31, 2019, based on three-month LIBOR +2.00%.

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, 2019 follows:



(dollar amounts in millions)	Rate			Principal amount of subordinated note/ debenture issued to trust (1)		Investment in unconsolidated subsidiary
Huntington Capital I	2.61	%	(2)	$	70	$	6
Huntington Capital II	2.53		(3)	32		3
Sky Financial Capital Trust III	3.31		(4)	72		2
Sky Financial Capital Trust IV	3.31		(4)	74		2
Camco Financial Trust	3.24		(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, 2019, based on three-month LIBOR + 0.70%.


(3)	Variable effective rate at December 31, 2019, based on three-month LIBOR + 0.625%.


(4)	Variable effective rate at December 31, 2019, based on three-month LIBOR + 1.40%.

(5)

Variable effective rate at December 31, 2019, 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