Huntington National Bank 2011 Annual Report Download - page 150

December 31, 2010
Past Due 90 or more
days past
due and
accruing
30-59
days
60-89
days
90 or more
days Total Current
Total Loans
and Leases
(dollar amounts in thousands)
Commercial and industrial:
Owner occupied .............. $ 16,393 $ 9,084 $ 80,114 $105,591 $ 3,717,872 $ 3,823,463 $ —
Other commercial and
industrial .................. 34,723 35,698 110,491 180,912 9,058,918 9,239,830 —
Total commercial and industrial .... $ 51,116 $44,782 $190,605 $286,503 $12,776,790 $13,063,293 $ —
Commercial real estate:
Retail properties .............. $ 23,726 $ 694 $ 72,856 $ 97,276 $ 1,664,941 $ 1,762,217 $ —
Multi family ................. 8,993 8,227 31,519 48,739 1,072,877 1,121,616 —
Office ...................... 20,888 6,032 36,401 63,321 1,059,806 1,123,127 —
Industrial and warehouse ....... 4,073 7,782 13,006 24,861 828,091 852,952 —
Other commercial real estate .... 45,792 9,243 91,718 146,753 1,644,491 1,791,244 —
Total commercial real estate ...... $103,472 $31,978 $245,500 $380,950 $ 6,270,206 $ 6,651,156 $ —
Automobile .................... $ 47,981 $12,246 $ 7,721 $ 67,948 $ 5,546,763 $ 5,614,711 $ 7,721
Home equity:
Secured by first-lien ........... 14,810 8,166 18,630 41,606 2,999,146 3,040,752 7,972
Secured by second-lien ......... 36,488 16,551 27,392 80,431 4,591,971 4,672,402 15,525
Residential mortgage ............ 115,290 57,580 197,280 370,150 4,130,216 4,500,366 152,271(3)
Other consumer ................ 7,204 2,280 2,456 11,940 551,887 563,827 2,456
(1) NALs are included in this aging analysis based on the loan’s past due status.
(2) Includes $96,703 thousand guaranteed by the U.S. government.
(3) Includes $98,288 thousand guaranteed by the U.S. government.
Allowance for Credit Losses
Huntington maintains two reserves, both of which reflect Management’s judgment regarding the appropriate
level necessary to absorb credit losses inherent in our loan and lease portfolio: the ALLL and the AULC.
Combined, these reserves comprise the total ACL. The determination of the ACL requires significant estimates,
including the timing and amounts of expected future cash flows on impaired loans and leases, consideration of
current economic conditions, and historical loss experience pertaining to pools of homogeneous loans and leases,
all of which may be susceptible to change.
The appropriateness of the ACL is based on Management’s current judgments about the credit quality of the
loan portfolio. These judgments consider on-going evaluations of the loan and lease portfolio, including such
factors as the differing economic risks associated with each loan category, the financial condition of specific
borrowers, the level of delinquent loans, the value of any collateral and, where applicable, the existence of any
guarantees or other documented support. Further, Management evaluates the impact of changes in interest rates
and overall economic conditions on the ability of borrowers to meet their financial obligations when quantifying
our exposure to credit losses and assessing the appropriateness of our ACL at each reporting date. In addition to
general economic conditions and the other factors described above, additional factors also considered include:
the impact of declining residential real estate values; the diversification of CRE loans; and the amount of C&I
loans to businesses in areas of Ohio and Michigan that have historically experienced less economic growth
compared with other footprint markets. Also, the ACL assessment includes the on-going assessment of credit
quality metrics, and a comparison of certain ACL benchmarks to current performance. Management’s
determinations regarding the appropriateness of the ACL are reviewed and approved by the Company’s board of
directors.
136