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, 2015

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, 2015 and 2014:



	December 31, 2015
	Huntington Technology Funding Trust				Other Consolidated Trusts		Total
(dollar amounts in thousands)	Series 2012A		Series 2014A		Other Consolidated Trusts		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



	December 31, 2014
(dollar amounts in thousands)		Other Consolidated Trusts		Total
Assets:
Cash		$	—	$	—
Net loans and leases		—		—
Accrued income and other assets		243		243
Total assets		$	243	$	243
Liabilities:
Other long-term debt		$	—	$	—
Accrued interest and other liabilities		243		243
Total liabilities		243		243
Equity:
Beneficial Interest owned by third party		—		—
Total liabilities and equity		$	243	$	243

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, 2015, and 2014:



	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



	December 31, 2014
(dollar amounts in thousands)	Total Assets		Total Liabilities		Maximum Exposure to Loss
2012-1 Automobile Trust	$	2,136	$	—	$	2,136
2012-2 Automobile Trust	3,220		—		3,220
2011 Automobile Trust	944		—		944
Tower Hill Securities, Inc.	55,611		65,000		55,611
Trust Preferred Securities	13,919		317,075		—
Low Income Housing Tax Credit Partnerships	368,283		154,861		368,283
Other Investments	83,400		20,760		83,400
Total	$	527,513	$	557,696	$	513,594

Summary of outstanding trust preferred securities

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



	At December 31,
(dollar amounts in thousands)	2015		2014
The Parent Company:
Senior Notes:
2.64% Huntington Bancshares Incorporated senior note due 2018	$	400,544	$	398,924
Subordinated Notes:
Fixed 7.00% subordinated notes due 2020	328,185		330,105
Huntington Capital I Trust Preferred 1.03% junior subordinated debentures due 2027 (1)	111,816		111,816
Sky Financial Capital Trust IV 1.73% junior subordinated debentures due 2036 (3)	74,320		74,320
Sky Financial Capital Trust III 2.01% junior subordinated debentures due 2036 (3)	72,165		72,165
Huntington Capital II Trust Preferred 1.14% junior subordinated debentures due 2028 (2)	54,593		54,593
Camco Statutory Trust I 2.95% due 2037 (4)	4,212		4,181
Total notes issued by the parent	1,045,835		1,046,104
The Bank:
Senior Notes:
2.24% Huntington National Bank senior note due 2018	845,016		—
2.10% Huntington National Bank senior note due 2018	750,035		—
1.75% Huntington National Bank senior note due 2018	502,822		—
2.23% Huntington National Bank senior note due 2017	502,549		499,759
2.43% Huntington National Bank senior note due 2020	500,646		—
2.97% Huntington National Bank senior note due 2020	500,489		—
1.43% Huntington National Bank senior note due 2019	500,292		499,760
1.31% Huntington National Bank senior note due 2016	498,925		497,477
1.40% Huntington National Bank senior note due 2016	349,793		349,499
0.74% Huntington National Bank senior note due 2017 (5)	250,000		250,000
5.04% Huntington National Bank medium-term notes due 2018	37,535		38,541
Subordinated Notes:
6.67% subordinated notes due 2018	136,237		140,115
5.59% subordinated notes due 2016	103,357		105,731
5.45% subordinated notes due 2019	83,833		85,783
Total notes issued by the bank	5,561,529		2,466,665
FHLB Advances:
3.46% weighted average rate, varying maturities greater than one year	7,802		758,052
Other:
Huntington Technology Finance nonrecourse debt, 4.21% effective interest rate, varying maturities	301,577		—
Huntington Technology Finance ABS Trust 2014 1.35% due 2020	123,577		—
Huntington Technology Finance ABS Trust 2012 1.79% due 2017	27,153		—
Other	141		65,141
Total other	452,448		65,141

Total long-term debt	$	7,067,614	$	4,335,962


(1)	Variable effective rate at December 31, 2015, based on three-month LIBOR +0.70%.


(2)	Variable effective rate at December 31, 2015, based on three-month LIBOR +0.625%.


(3)	Variable effective rate at December 31, 2015, based on three-month LIBOR +1.40%.


(4)	Variable effective rate at December 31, 2015, based on three-month LIBOR +1.33%.


(5)	Variable effective rate at December 31, 2015, 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, 2015 follows:



(dollar amounts in thousands)	Rate			Principal amount of subordinated note/ debenture issued to trust (1)		Investment in unconsolidated subsidiary
Huntington Capital I	1.03	%	(2)	$	111,816	$	6,186
Huntington Capital II	1.14		(3)	54,593		3,093
Sky Financial Capital Trust III	2.01		(4)	72,165		2,165
Sky Financial Capital Trust IV	1.73		(4)	74,320		2,320
Camco Financial Trust	2.95		(5)	4,212		155
Total				$	317,106	$	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, 2015, based on three-month LIBOR + 0.70.


(3)	Variable effective rate at December 31, 2015, based on three-month LIBOR + 62.5.


(4)	Variable effective rate at December 31, 2015, based on three-month LIBOR + 1.40.


(5)	Variable effective rate (including impact of purchase accounting accretion) at December 31, 2015, 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