Huntington National Bank 2004 Annual Report Download - page 55

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MANAGEMENT’S DISCUSSION AND ANALYSIS HUNTINGTON BANCSHARES INCORPORATED
Table 15 — Summary of Allowances for Credit Losses and Related Statistics
Year Ended December 31,
(in thousands of dollars) 2004 2003 2002 2001 2000
Balance, beginning of year $ 299,732 $ 300,503 $ 345,402 $ 246,758 $255,642
Loan and lease losses
Commercial
Middle market commercial and industrial (21,095) (86,217) (112,430) (48,788) (9,609)
Middle market real estate:
Construction (2,477) (3,092) (4,343) (824) (218)
Commercial (5,650) (6,763) (13,383) (1,959) (740)
Total middle market commercial real estate (8,127) (9,855) (17,726) (2,783) (958)
Small business commercial and industrial and commercial real estate (10,270) (16,311) (18,587) (18,693) (9,206)
Total commercial (39,492) (112,383) (148,743) (70,264) (19,773)
Consumer
Automobile loans and leases (57,025) (63,522) (59,010) (71,638) (47,687)
Home equity(1) (17,514) (14,166) (13,395) (13,201) (4,021)
Residential mortgage (1,975) (915) (888) (879) (1,140)
Other consumer loans(1) (10,109) (10,548) (12,316) (18,558) (13,204)
Total consumer (86,623) (89,151) (85,609) (104,276) (66,052)
Total loan and lease losses (126,115) (201,534) (234,352) (174,540) (85,825)
Recoveries of loan and lease losses
Commercial
Middle market commercial and industrial 19,175 10,414 7,727 3,450 2,650
Middle market real estate:
Construction 12 164 127 35 219
Commercial 144 1,744 1,415 539 104
Total middle market commercial real estate 156 1,908 1,542 574 323
Small business commercial and industrial and commercial real estate 4,704 4,686 4,071 2,943 1,661
Total commercial 24,035 17,008 13,340 6,967 4,634
Consumer
Automobile loans and leases 17,614 17,528 18,464 16,567 15,407
Home equity(1) 2,440 2,052 1,555 1,743 142
Residential mortgage 215 83 16 94 133
Other consumer loans(1) 3,276 3,054 4,065 2,900 3,862
Total consumer 23,545 22,717 24,100 21,304 19,544
Total recoveries 47,580 39,725 37,440 28,271 24,178
Net loan and lease losses (78,535) (161,809) (196,912) (146,269) (61,647)
Provision for credit losses 55,062 163,993 194,426 257,326 61,464
Net change in allowance for unfunded loan commitments and letters of credit 2,335 623 (12,215) (5,759) 118
Allowance of assets sold and securitized(2) (7,383) (3,578) (30,198) (6,654) (8,819)
Allowance for loan and lease losses, end of period $ 271,211 $ 299,732 $ 300,503 $ 345,402 $246,758
Allowance for unfunded loan commitments and letters of credit,
beginning of period $ 35,522 $ 36,145 $ 23,930 $ 18,171 $ 18,289
Net change (2,335) (623) 12,215 5,759 (118)
Allowance for unfunded loan commitments and letters of credit, end of period $ 33,187 $ 35,522 $ 36,145 $ 23,930 $ 18,171
Balance, end of year $ 304,398 $ 335,254 $ 336,648 $ 369,332 $264,929
Net loan and lease losses as a % of average total loans and leases 0.35% 0.81% 1.13% 0.81% 0.35%
Allowances for credit losses as a % of total period end loans and leases 1.29 1.59 1.81 2.00 1.50
(1) Effective December 31, 2004, unsecured personal credit line charge-offs were reclassified from ‘‘home equity loans’’ to ‘‘other loans’’ in all periods presented.
(2) 2003 reflects a $10.3 million addition related to adoption of FIN 46.
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