<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington D.C., 20549
FORM 11-K
/X/ ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES AND EXCHANGE ACT
OF 1934 (FEE REQUIRED) FOR THE FISCAL YEAR ENDED DECEMBER 31, 1994
OR
/ / TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES AND
EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
COMMISSION FILE NO. 0-2525
A. Full Title of the Plan and the address of the Plan, if different from that
of the issuer named below:
Huntington Bancshares Incorporated
Deferred Compensation Plan and Trust for Directors
B. Name of issuer of the securities held pursuant to the Plan and the address
of its principal executive office:
Huntington Bancshares Incorporated
Huntington Center
41 South High Street
Columbus, Ohio 43287
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HUNTINGTON BANCSHARES INCORPORATED
DEFERRED COMPENSATION PLAN AND TRUST FOR DIRECTORS
INDEX TO FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
Page
----
<S> <C>
Report of Independent Auditors 3
Statements of Financial Condition -
December 31, 1994 and 1993 4
Statements of Income and Changes in Plan Equity -
For the years ended December 31, 1994, 1993, and 1992 5
Notes to Financial Statements 6
Exhibit
Consent of Independent Auditors 10
</TABLE>
2
<PAGE> 3
[ERNST & YOUNG LETTERHEAD]
Report of Independent Auditors
Board of Directors
Huntington Bancshares Incorporated
We have audited the accompanying statements of financial condition of the
Huntington Bancshares Incorporated Deferred Compensation Plan and Trust for
Directors (the "Plan") as of December 31, 1994 and 1993, and the related
statements of income and changes in plan equity for each of the three years in
the period ended December 31, 1994. These financial statements are the
responsibility of the Plan's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of the Huntington Bancshares
Incorporated Deferred Compensation Plan and Trust for Directors at December 31,
1994 and 1993, and the results of its operations and the changes in its plan
equity for each of the three years in the period ended December 31, 1994, in
conformity with generally accepted accounting principles.
/s/ Ernst & Young LLP
March 27, 1995
3
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HUNTINGTON BANCSHARES INCORPORATED
DEFERRED COMPENSATION PLAN AND TRUST FOR DIRECTORS
STATEMENTS OF FINANCIAL CONDITION
<TABLE>
<CAPTION>
December 31,
1994 1993
----------- -----------
<S> <C> <C>
ASSETS
Investments, at market value:
Huntington Bancshares Incorporated
Common Stock - 295,998 shares and
268,925 shares; Cost - $3,148,430
and $3,266,689 (Note 4) $ 5,105,972 $ 6,353,373
Contributions receivable 22,200 8,398
Accrued dividends and interest receivable 59,200 54,764
Cash and cash equivalents (Note 2) 50 ---
----------- -----------
TOTAL ASSETS $ 5,187,422 $ 6,416,535
=========== ===========
LIABILITIES AND PLAN EQUITY
Plan Equity $ 5,187,422 $ 6,416,535
----------- -----------
TOTAL LIABILITIES AND
PLAN EQUITY $5,187,422 $6,416,535
========== ==========
</TABLE>
See notes to financial statements.
4
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HUNTINGTON BANCSHARES INCORPORATED
DEFERRED COMPENSATION PLAN AND TRUST FOR DIRECTORS
STATEMENTS OF INCOME AND CHANGES IN PLAN EQUITY
<TABLE>
<CAPTION>
Years ended December 31,
1994 1993 1992
------------ ------------ ----------
<S> <C> <C> <C>
Investment income:
Cash dividends on Huntington Bancshares
Incorporated Common Stock $ 231,787 $ 198,760 $ 147,653
Interest 318 199 2,197
------------ ------------ ----------
232,105 198,959 149,850
Unrealized (depreciation) appreciation
of investments (Note 4) (1,129,142) 678,802 1,546,123
Contributions 427,392 354,727 368,918
Withdrawals (759,468) (71,544) ---
------------ ------------ ----------
Net (decrease) increase in Plan Equity (1,229,113) 1,160,944 2,064,891
Plan Equity - Beginning of Period 6,416,535 5,255,591 3,190,700
------------ ------------ ----------
Plan Equity - End of Period $ 5,187,422 $ 6,416,535 $5,255,591
============ ============ ==========
</TABLE>
See notes to financial statements.
5
<PAGE> 6
HUNTINGTON BANCSHARES INCORPORATED
DEFERRED COMPENSATION PLAN AND TRUST FOR DIRECTORS
NOTES TO FINANCIAL STATEMENTS
December 31, 1994
Note 1 - Summary of Accounting Policies
Description of the Plan
The Huntington Bancshares Incorporated Deferred Compensation Plan and Trust for
Directors (the "Plan") was adopted by the Board of Directors of Huntington
Bancshares Incorporated ("Huntington") on September 15, 1986, to be effective on
that date. The Plan was subsequently amended on August 19, 1987, and April 25,
1991. The following summary describes the Plan as amended and restated.
The Plan is in the form of a trust agreement between Huntington and its
wholly-owned subsidiary, The Huntington National Bank (the "Trustee"). The Plan
provides each director of Huntington's participating affiliates (a "Director")
with the option to defer receipt of all or a portion of the compensation payable
to him or her for services as a Director. Huntington transfers an amount equal
to one hundred twenty-five percent (125%) of the compensation deferred pursuant
to the Plan to a trust fund administered by the Trustee.
Amounts held in the trust fund may be invested by the Trustee in common stock,
common trust funds, real estate, and other property which the Trustee deems to
be in the best interest of the participating Directors. The Trustee maintains a
separate account for each Director which reflects such Director's share of
assets held in his or her account in the Plan.
The Plan is administered by a committee of the Huntington Board of Directors
(the "Committee") consisting of not less than three members. As of the date
hereof, the members of the Committee are John B. Gerlach, Timothy P. Smucker,
Marvin E. White, and Don Conrad. The members of the Committee are appointed by
the Board of Directors of Huntington (the "Board") and serve until they resign
or until they are removed with or without cause by the Board. None of the
members of the Committee receives compensation from the assets of the Plan.
Distributions are made either in a lump sum or in equal annual installments over
a period of not more than ten years. The Committee has sole discretion to
distribute all or a portion of a Director's account in the event such Director
requests a hardship distribution.
Huntington may amend or terminate the Plan at any time provided that no such
amendment or termination will affect the rights of Directors to amounts
previously credited to their accounts.
6
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Effective April 25, 1991, the Plan was amended to exclude Huntington Directors
from future participation in the Plan. Contributions previously made on behalf
of Huntington Directors, and related earnings thereon, were not affected by the
amendment.
Investments
The Trustee may, at its discretion, invest contributed amounts in common stock,
common trust funds, real estate, and other classes of property. As of December
31, 1994 and 1993, Plan assets were primarily invested in shares of common stock
of Huntington ("Common Stock"). These shares are carried at market value as
determined by quoted prices reported by the National Association of Securities
Dealers Automated Quotation System.
Income and Expenses
Cash dividends are recognized as of the record date. All costs and expenses
incurred in administering the Plan, including brokerage commissions and fees
incurred in connection with the purchase of securities, are paid by Huntington
and participating affiliates. Expenses incurred in administering the Plan
totaled $16,823, $17,446, and $12,142 for 1994, 1993, and 1992, respectively.
Note 2 - Cash Equivalents
Cash equivalents are comprised of money market funds.
Note 3 - Federal Income Taxes
The Plan is established as an unfunded deferred compensation plan under the
Internal Revenue Code. Accordingly, a Director will not incur federal income tax
liability when compensation is deferred pursuant to the Plan, when matched
contributions are made to the Plan, when Common Stock is purchased for a
Director's account, or when dividends are paid to a Director's account on such
shares. Rather, a Director will incur federal income tax liability for such
contributions and income only when distributions are made to a Director.
Huntington has received a ruling from the Internal Revenue Service that the
operation of the Plan has the tax consequences described above.
Huntington is subject to any federal income taxes arising from taxable income of
the Plan. Accordingly, no provision for federal income taxes is included in the
financial statements of the Plan. If, at any time, it is determined that
compensation deferred pursuant to the Plan is currently subject to income tax by
the Directors or their beneficiaries, the Plan shall terminate and any amounts
held in the trust fund shall be distributed to the Directors or their
beneficiaries.
The Plan is not qualified under Section 401(a) of the Internal Revenue Code and
is not subject to the provisions of the Employee Retirement Income Security Act
of 1974.
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Note 4 - Unrealized (Depreciation) Appreciation of Investments
The following table summarizes the unrealized (depreciation) appreciation of the
Plan's investments in Common Stock for each of the three years in the period
ended December 31, 1994:
<TABLE>
<CAPTION>
1994 1993 1992
----------- ---------- ----------
<S> <C> <C> <C>
Market Value $ 5,105,972 $6,353,373 $5,257,844
Cost 3,148,430 3,266,689 2,849,962
----------- ---------- ----------
Accumulated unrealized
appreciation $ 1,957,542 $3,086,684 $2,407,882
=========== ========== ==========
Change in accumulated unrealized
appreciation between years $(1,129,142) $ 678,802 $1,546,123
=========== ========== ==========
</TABLE>
8
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Committee of the Huntington Bancshares Incorporated Deferred Compensation Plan
and Trust for Directors has duly caused this annual report to be signed by the
undersigned thereunto duly authorized.
HUNTINGTON BANCSHARES INCORPORATED
DEFERRED COMPENSATION PLAN AND
TRUST FOR DIRECTORS
Date: March 31, 1995 By: /s/ Ralph K. Frasier
------------------------ ---------------------------
Ralph K. Frasier
General Counsel and Secretary
Huntington Bancshares Incorporated
9
<PAGE> 1
Exhibit 23
Exhibit to the Annual
Report (Form 11-K) of the
Huntington Bancshares
Incorporated Deferred
Compensation Plan and
Trust for Directors for
the fiscal year ended
December 31, 1994.
CONSENT OF INDEPENDENT AUDITORS
We consent to the incorporation by reference in Amendment No. 2 to the
Registration Statement (Form S-8 No. 33-10546) pertaining to the Huntington
Bancshares Incorporated Deferred Compensation Plan and Trust for Directors and
in the related Prospectus of our report dated March 27, 1995 with respect to the
financial statements of the Huntington Bancshares Incorporated Deferred
Compensation Plan and Trust for Directors included in this Annual Report (Form
11-K) for the year ended December 31, 1994.
/s/ Ernst & Young LLP
---------------------
Columbus, Ohio
March 27, 1995
10
