Annual report pursuant to Section 13 and 15(d)

Subordinated Notes

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Subordinated Notes
 12 Months Ended
Dec. 31, 2013
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)   2013     2012
           
Parent company:          
6.21% subordinated notes due 2013 $ ---   $ 49,892
7.00% subordinated notes due 2020   323,856     350,656
0.94% junior subordinated debentures due 2027 (1)   111,816     111,816
0.87% junior subordinated debentures due 2028 (2)   54,593     54,593
1.65% junior subordinated debentures due 2036 (3)   72,165     72,165
1.65% junior subordinated debentures due 2036 (3)   74,320     74,320
The Huntington National Bank:          
5.00% subordinated notes due 2014   125,109     130,186
5.59% subordinated notes due 2016   108,038     110,321
6.67% subordinated notes due 2018   143,749     150,219
5.45% subordinated notes due 2019   87,214     92,923
Total subordinated notes $ 1,100,860   $ 1,197,091
           
(1) Variable effective rate at December 31, 2013, based on three month LIBOR + 0.70%.
(2) Variable effective rate at December 31, 2013, based on three month LIBOR + 0.625%.
(3) Variable effective rate at December 31, 2013, 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, Huntington retired $230.3 million of junior subordinated debentures, which resulted in net pre-tax gains of $0.8 million. These transactions have been recorded as gains on early extinguishment of debt, a reduction of noninterest expense, in the Consolidated Financial Statements.