Huntington Bancshares
Encyclopedia
Midwestern United States
The Midwestern United States is one of the four U.S. geographic regions defined by the United States Census Bureau, providing an official definition of the American Midwest....
bank holding company headquartered in Columbus, Ohio
Columbus, Ohio
Columbus is the capital of and the largest city in the U.S. state of Ohio. The broader metropolitan area encompasses several counties and is the third largest in Ohio behind those of Cleveland and Cincinnati. Columbus is the third largest city in the American Midwest, and the fifteenth largest city...
. It is the 24th largest American bank
Banking in the United States
Banking in the United States is regulated by both the federal and state governments.The U.S. banking sector's short-term liabilities as of October 11, 2008 are 15% of the gross domestic product of the United States or 43% of its national debt, and the average bank leverage ratio is 12 to...
. As of October 22, 2008, it was listed on the S&P 500
S&P 500
The S&P 500 is a free-float capitalization-weighted index published since 1957 of the prices of 500 large-cap common stocks actively traded in the United States. The stocks included in the S&P 500 are those of large publicly held companies that trade on either of the two largest American stock...
. It was ranked number 610 on the 2008 Fortune 1000
Fortune 1000
Fortune 1000 is a reference to a list maintained by the American business magazine Fortune. The list is of the 1000 largest American companies, ranked on revenues alone...
.
The company's banking affiliate, The Huntington National Bank, provides retail
Retail banking
Retail banking is banking in which banking institutions execute transactions directly with consumers, rather than corporations or other banks. Services offered include: savings and transactional accounts, mortgages, personal loans, debit cards, credit cards, and so forth.-Types of...
and commercial
Commercial bank
After the implementation of the Glass–Steagall Act, the U.S. Congress required that banks engage only in banking activities, whereas investment banks were limited to capital market activities. As the two no longer have to be under separate ownership under U.S...
financial services in Indiana
Indiana
Indiana is a US state, admitted to the United States as the 19th on December 11, 1816. It is located in the Midwestern United States and Great Lakes Region. With 6,483,802 residents, the state is ranked 15th in population and 16th in population density. Indiana is ranked 38th in land area and is...
, Kentucky
Kentucky
The Commonwealth of Kentucky is a state located in the East Central United States of America. As classified by the United States Census Bureau, Kentucky is a Southern state, more specifically in the East South Central region. Kentucky is one of four U.S. states constituted as a commonwealth...
, Michigan
Michigan
Michigan is a U.S. state located in the Great Lakes Region of the United States of America. The name Michigan is the French form of the Ojibwa word mishigamaa, meaning "large water" or "large lake"....
, Ohio
Ohio
Ohio is a Midwestern state in the United States. The 34th largest state by area in the U.S.,it is the 7th‑most populous with over 11.5 million residents, containing several major American cities and seven metropolitan areas with populations of 500,000 or more.The state's capital is Columbus...
, Pennsylvania
Pennsylvania
The Commonwealth of Pennsylvania is a U.S. state that is located in the Northeastern and Mid-Atlantic regions of the United States. The state borders Delaware and Maryland to the south, West Virginia to the southwest, Ohio to the west, New York and Ontario, Canada, to the north, and New Jersey to...
, and West Virginia
West Virginia
West Virginia is a state in the Appalachian and Southeastern regions of the United States, bordered by Virginia to the southeast, Kentucky to the southwest, Ohio to the northwest, Pennsylvania to the northeast and Maryland to the east...
. Huntington also provides retail services online.
There also are selected financial service activities in other states, including offices in Florida
Florida
Florida is a state in the southeastern United States, located on the nation's Atlantic and Gulf coasts. It is bordered to the west by the Gulf of Mexico, to the north by Alabama and Georgia and to the east by the Atlantic Ocean. With a population of 18,801,310 as measured by the 2010 census, it...
, Cayman Islands, and Hong Kong. Huntington also had retail banking
Retail banking
Retail banking is banking in which banking institutions execute transactions directly with consumers, rather than corporations or other banks. Services offered include: savings and transactional accounts, mortgages, personal loans, debit cards, credit cards, and so forth.-Types of...
offices in Florida until 2002, when it sold these branches off to SunTrust Banks
SunTrust Banks
SunTrust Banks, Inc., is an American bank holding company. The largest subsidiary is SunTrust Bank. It had US$172.7 billion in assets as of September 30, 2009...
in order to focus on its core Midwestern operations.
Huntington formerly had ATM's
Automated teller machine
An automated teller machine or automatic teller machine, also known as a Cashpoint , cash machine or sometimes a hole in the wall in British English, is a computerised telecommunications device that provides the clients of a financial institution with access to financial transactions in a public...
located at locations of Pittsburgh-based restaurant chain Eat'n Park
Eat'n Park
Eat'n Park is a restaurant chain based in Homestead, Pennsylvania with over 75 locations in Ohio, Pennsylvania, and West Virginia. The chain is known for its Smiley Cookies.-History:...
, which it had acquired through its 2007 acquisition of Sky Financial Group
Sky Financial Group
Sky Financial Group, Inc., was a diversified financial services holding company that operated in the Midwestern United States from 1998 until its 2007 acquisition by rival bank Huntington Bancshares...
. These are now run by third-party ATM providers.
| Number of banking offices by State | ||
|---|---|---|
| State | Banking offices | |
| Ohio | 403 | |
| Florida | 2 | |
| Indiana | 52 | |
| Kentucky | 14 | |
| Michigan | 129 | |
| Pennsylvania | 62 | |
| West Virginia | 34 | |
Acquisitions
On December 20, 2006, Huntington Bancshares announced they would buy Sky Financial Group Inc. based out of Bowling GreenBowling Green, Ohio
Bowling Green is the county seat of Wood County in the U.S. state of Ohio. At the time of the 2010 census, the population of Bowling Green was 30,028. It is part of the Toledo, Ohio Metropolitan Statistical Area. Bowling Green is the home of Bowling Green State University...
, Ohio
Ohio
Ohio is a Midwestern state in the United States. The 34th largest state by area in the U.S.,it is the 7th‑most populous with over 11.5 million residents, containing several major American cities and seven metropolitan areas with populations of 500,000 or more.The state's capital is Columbus...
. This merger was completed on July 1, 2007, although Sky branches did not change their branding until late September.
Huntington was one of the banks attempting, alongside Fifth Third Bank
Fifth Third Bank
Fifth Third Bank is a U.S. regional banking corporation, headquartered in Cincinnati, Ohio and is the principal subsidiary of holding company Fifth Third Bancorp ....
, to acquire the National City
National City Corp.
National City Corporation was a regional bank holding company based in Cleveland, Ohio, USA, founded in 1845; it was once one of the ten largest banks in America in terms of deposits, mortgages and home equity lines of credit. Subsidiary National City Mortgage is credited for doing the first...
branches in the Pittsburgh region that had to be sold off by PNC Financial Services
PNC Financial Services
PNC Financial Services Group, Inc. is a U.S.-based financial services corporation, with assets of approximately $264.3 billion...
by order of the United States Department of Justice
United States Department of Justice
The United States Department of Justice , is the United States federal executive department responsible for the enforcement of the law and administration of justice, equivalent to the justice or interior ministries of other countries.The Department is led by the Attorney General, who is nominated...
as part of the deal for PNC to acquire National City. Huntington, which had entered the Pittsburgh market by way of the Sky acquisition, has been expanding in that market, and had considered the National City branches as a way to expand its market share. Ultimately, PNC sold the overlapping branches to First Niagara Bank
First Niagara Bank
First Niagara Bank is a Federal Deposit Insurance Corporation-insured regional banking corporation headquartered in the historic Larkin Terminal Warehouse in Buffalo, New York.-History:...
.
On October 3, 2009, the Federal Deposit Insurance Corporation
Federal Deposit Insurance Corporation
The Federal Deposit Insurance Corporation is a United States government corporation created by the Glass–Steagall Act of 1933. It provides deposit insurance, which guarantees the safety of deposits in member banks, currently up to $250,000 per depositor per bank. , the FDIC insures deposits at...
named Huntington as receiver
Receivership
In law, receivership is the situation in which an institution or enterprise is being held by a receiver, a person "placed in the custodial responsibility for the property of others, including tangible and intangible assets and rights." The receivership remedy is an equitable remedy that emerged in...
of a $400 million deposit portfolio from the bank failure
Bank failure
A bank failure occurs when a bank is unable to meet its obligations to its depositors or other creditors because it has become insolvent or too illiquid to meet its liabilities. More specifically, a bank usually fails economically when the market value of its assets declines to a value that is...
of Warren Bank in Warren, Michigan
Warren, Michigan
Warren is a city in Macomb County in the U.S. state of Michigan. The 2010 census places the city's population at 134,056, making Warren the largest city in Macomb County, the third largest city in Michigan, and Metro Detroit's largest suburb....
. On December 18, 2009, Huntington signed a 45-day lease with the FDIC to run a bridge bank for the failed Citizens State Bank in New Baltimore, Michigan
New Baltimore, Michigan
New Baltimore is a city and coastal resort community in Macomb County in the U.S. state of Michigan. The population was 7,405 at the 2000 census. The 2008 Census Bureau Estimate places the population at 11,346. New Baltimore is in Metropolitan Detroit....
.
Huntington acquired the tiny Savings Bank of Chillicothe, Ohio
Chillicothe, Ohio
Chillicothe is a city in and the county seat of Ross County, Ohio, United States.Chillicothe was the first and third capital of Ohio and is located in southern Ohio along the Scioto River. The name comes from the Shawnee name Chalahgawtha, meaning "principal town", as it was a major settlement of...
in the early 1980's, which only got notoriety in 2011 when 100-year-old June Gregg revealed to Huntington officials that her father had opened a savings account
Savings account
Savings accounts are accounts maintained by retail financial institutions that pay interest but cannot be used directly as money . These accounts let customers set aside a portion of their liquid assets while earning a monetary return...
for her as a baby with Savings Bank in 1913 and had subsequently kept the account open to the present day. Huntington officials, after doing research on the account in question, later confirmed it and gave her account a temporary increase in her interest rate
Interest rate
An interest rate is the rate at which interest is paid by a borrower for the use of money that they borrow from a lender. For example, a small company borrows capital from a bank to buy new assets for their business, and in return the lender receives interest at a predetermined interest rate for...
to 5% as a centenarian
Centenarian
A centenarian is a person who is or lives beyond the age of 100 years. Because current average life expectancies across the world are less than 100, the term is invariably associated with longevity. Much rarer, a supercentenarian is a person who has lived to the age of 110 or more, something only...
present for her 98-year loyalty to Huntington and the Chillicothe branch's predecessor, Savings Bank.
Huntington Preferred Capital
Huntington Bancshares also operates Huntington Preferred Capital, IncCorporation
A corporation is created under the laws of a state as a separate legal entity that has privileges and liabilities that are distinct from those of its members. There are many different forms of corporations, most of which are used to conduct business. Early corporations were established by charter...
. This entity serves as a Real Estate Investment Trust
Real estate investment trust
A real estate investment trust or REIT is a tax designation for a corporate entity investing in real estate. The purpose of this designation is to reduce or eliminate corporate tax. In return, REITs are required to distribute 90% of their taxable income into the hands of investors...
(REIT).
Huntington Preferred Capital was organized under Ohio law in 1992 and designated as a REIT in 1998. Four related parties own HPCI’s common stock
Common stock
Common stock is a form of corporate equity ownership, a type of security. It is called "common" to distinguish it from preferred stock. In the event of bankruptcy, common stock investors receive their funds after preferred stock holders, bondholders, creditors, etc...
: Huntington Capital Financing LLC; Huntington Preferred Capital II, Inc.; Huntington Preferred Capital Holdings, Inc.; and Huntington Bancshares Incorporated. All these entities are tied via ownership and/or interlocking directorships to Huntington Bancshares, either directly or through Huntington National Bank.
In addition to the common stock, Huntington Preferred Capital also issued 2 million shares of preferred stock
Preferred stock
Preferred stock, also called preferred shares, preference shares, or simply preferreds, is a special equity security that has properties of both an equity and a debt instrument and is generally considered a hybrid instrument...
, paying a quarterly cash dividend of $0.4925 per share. This stock is largely held by the same companies as the common stock, but a small fraction of the available shares are sold on the open market.
Huntington Preferred Capital had one subsidiary, HPCLI, Inc., a taxable REIT subsidiary formed in March 2001 for the purpose of holding certain assets (primarily leasehold improvements). On December 31, 2007, Huntington Preferred Capital paid common stock dividends consisting of cash and the stock of HPCLI to its common stock shareholders. After the stock dividend was paid out, HPCLI became a wholly owned subsidiary of Huntington Preferred Capital Holdings, which holds all the shares of HPCLI.