Huntington National Bank 2005 Annual Report Download - page 114

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NOTES TOCONSOLIDATED FINANCIAL STATEMENTS HUNTINGTON BANCSHARES INCORPORATED
Huntington’s loan and lease portfolio includes lease financing receivables consisting of direct financing leases on equipment,
which are included in commercial and industrial loans, and on automobiles. Net investment in lease financing receivables by
category at December 31 were as follows:
At December 31,
(in thousands of dollars) 2005 2004
Commercial and industrial
Lease payments receivable $ 486,488 $ 389,177
Estimated residual value of leased assets 39,570 37,704
Gross investment in commercial lease financing receivables 526,058 426,881
Deferred origination fees and costs 3,125 1,980
Unearned income (58,476) (39,414)
Total net investment in commercial lease financing receivables $ 470,707 $ 389,447
Consumer
Lease payments receivable $ 1,209,088 $1,453,909
Estimated residual value of leased assets 1,296,303 1,258,160
Gross investment in consumer lease financing receivables 2,505,391 2,712,069
Deferred origination fees and costs (565) (2,130)
Unearned income (215,811) (266,484)
Total net investment in consumer lease financing receivables $ 2,289,015 $2,443,455
The future lease rental payments due from customers on direct financing leases at December 31, 2005, totaled $1.2 billion and
were as follows: $0.5 billion in 2006; $0.4 billion in 2007; $0.2 billion in 2008; $0.1 billion in 2009, and less than $0.1 billion
thereafter. Included in the estimated residual value of leased consumer assets was a valuation reserve of $5.1 million and
$4.2 million at December 31, 2005 and 2004, respectively, for expected residual value impairment not covered by residual value
insurance.
R
ELATED
P
ARTY
T
RANSACTIONS
Huntington has made loans to its officers, directors, and their associates. These loans were made in the ordinary course of
business under normal credit terms, including interest rate and collateralization, and do not represent more than the normal risk
of collection. These loans to related parties for the year ended December 31 are summarized as follows:
(in thousands of dollars) 2005
Balance, beginning of year $ 89,177
Loans made 219,728
Repayments (231,814)
Changes due to status of executive officers and directors (603)
Balance, end of year $ 76,488
N
ON
-P
ERFORMING
A
SSETS AND
P
AST
D
UE
L
OANS
At December 31, 2005 and 2004, loans in non-accrual status and loans past due 90 days or more and still accruing interest, were
as follows:
At December 31,
(in thousands of dollars) 2005 2004
Commercial and industrial $ 55,273 $ 34,692
Commercial real estate 18,309 8,670
Residential mortgage 17,613 13,545
Home equity 10,720 7,055
Total non-performing loans 101,915 63,962
Other real estate, net 15,240 44,606
Total non-performing assets $ 117,155 $108,568
Accruing loans past due 90 days or more $ 56,138 $ 54,283
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