Annual report pursuant to Section 13 and 15(d)

Subordinated Notes

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Subordinated Notes
12 Months Ended
Dec. 31, 2012
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)   2012     2011
           
Parent company:          
6.21% subordinated notes due 2013 $ 49,892   $ 49,482
7.00% subordinated notes due 2020   350,656     344,347
1.01% junior subordinated debentures due 2027 (1)   111,816     111,816
0.93% junior subordinated debentures due 2028 (2)   54,593     54,593
8.54% junior subordinated debentures due 2029   ---     23,192
8.56% junior subordinated debentures due 2030   ---     64,194
3.34% junior subordinated debentures due 2033   ---     30,929
3.65% junior subordinated debentures due 2033   ---     6,186
1.71% junior subordinated debentures due 2036 (3)   72,165     72,165
1.76% junior subordinated debentures due 2036 (3)   74,320     77,320
6.69% junior subordinated debentures due 2067   ---     114,101
The Huntington National Bank:          
6.21% subordinated notes due 2012   ---     64,959
5.00% subordinated notes due 2014   130,186     134,225
5.59% subordinated notes due 2016   110,321     111,953
6.67% subordinated notes due 2018   150,219     151,444
5.45% subordinated notes due 2019   92,923     92,462
Total subordinated notes $ 1,197,091   $ 1,503,368
           
(1) Variable effective rate at December 31, 2012, based on three month LIBOR + 0.70%.
(2) Variable effective rate at December 31, 2012, based on three month LIBOR + 0.625%.
(3) Variable effective rate at December 31, 2012, based on three month LIBOR + 1.40%.

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 2012 and 2011, Huntington retired $230.3 million and $36.1 million, respectively of junior subordinated debentures, which resulted in net pre-tax gains of $0.8 million and $9.7 million, respectively. These transactions have been recorded as gains on early extinguishment of debt, a reduction of noninterest expense, in the Consolidated Financial Statements.