Law and regulation

Huntington to Repurchase $114.3M in Trust-Preferred Securities

By Jackie Stewart August 07, 2012, 11:16 a.m. EDT 1 Min Read

Community banking

Banks Begin Shedding Trust-Preferred Securities

BB&T, Webster and TCF announce redemption plans and other regionals are likely to follow in advance of new capital rules that take effect Jan. 1.

By Jackie Stewart

June 19

Huntington Bancshares (HBAN) in Columbus, Ohio, will redeem roughly $114.3 million in trust-preferred securities next month.

Huntington is the latest banking company to announce plans to repurchase its trust-preferred securities as new capital standards will begin being phased in next year. Banks with at least $15 billion of assets at Dec. 31, 2009, will no longer be able to count trust-preferred securities as part of Tier 1 capital under a provision of the Dodd-Frank Act.

The redemptions will be funded with existing cash and are expected to result in a modest loss, the $57 billion-asset Huntington said Monday.

Other banks that said they would repay their trust-preferred securities include Fifth Third Bancorp (FITB), BB&T (BBT) and Bank of America (BAC). Industry observers expect the number of banks taking similar steps to rise in the coming months.

Executive Editor, American Banker Magazine

mailto

For reprint and licensing requests for this article, click here.

Law and regulation

MORE FROM AMERICAN BANKER

Politics and policy

'We lean optimistic': Bankers hope election outcome will boost loan growth

Leaders at financial institutions said borrower demand should pick back up, if slowly, following Tuesday's vote.

By Catherine Leffert

10h ago
Payments

How one industry group is challenging the CFPB's BNPL rule

The Consumer Financial Protection Bureau will soon have to defend its interpretive buy now/pay later rule in court following an industry advocacy group lawsuit. Here's what's at stake.

By Joey Pizzolato

11h ago
Election 2024

Election could mean new leaders for key Congressional committees

Potential new Senate Finance Committee Chair Sen. Mike Crapo, R-Idaho, has suggested a potential workaround to offset the cost of extending the Tax Cuts and Jobs Act.

By Caitlin Devitt

November 4
Customer experience

'Like qualitative research without having to pay': A bank's guide to Reddit

Few banks are listening to what their customers are saying on Reddit, but the site can help them spot customer complaints and develop content that dispels misinformation.

By Miriam Cross

November 4
Federal Reserve

Senate Democrats call for another half-point Fed rate cut

Sens. Elizabeth Warren and John Hickenlooper say recent data suggests there is "no need for restrictive interest rates" and easier monetary policy is necessary to lower housing costs.

By Kyle Campbell

November 4
Community banking

Community banks hire, promote top executives in October

Multiple lenders filled leadership roles across the country, including National Bankshares in Virginia, while Peoples Financial in Pennsylvania said its CEO would step down.

By Jim Dobbs

November 4