Huntington National Bank 2011 Annual Report Download - page 77

The table below reflects the allocation of our ACL among our various loan categories during each of the
past five years:
Table 19 — Allocation of Allowances for Credit Losses (1)
At December 31,
2011 2010 2009 2008 2007
(dollar amounts in thousands)
Commercial:
Commercial and industrial ............. $ 275,367 38%$ 340,614 34% $ 492,205 35% $412,201 33% $295,555 33%
Commercial real estate ................ 388,706 14 588,251 18 751,875 21 322,681 25 172,998 23
Total commercial ...................... 664,073 52 928,865 52 1,244,080 56 734,882 58 468,553 56
Consumer:
Automobile ......................... 38,282 11 49,488 15 57,951 9 44,712 11 28,635 11
Home equity ........................ 143,873 21 150,630 20 102,039 21 63,538 18 45,957 18
Residential mortgage ................. 87,194 13 93,289 12 55,903 12 44,463 12 20,746 14
Other loans ......................... 31,406 3 26,736 1 22,506 2 12,632 1 14,551 1
Total consumer ........................ 300,755 48 320,143 48 238,399 44 165,345 42 109,889 44
Total allowance for loan and lease losses .... 964,828 100% 1,249,008 100% 1,482,479 100% 900,227 100% 578,442 100%
Allowance for unfunded loan
commitments ........................ 48,456 42,127 48,879 44,139 66,528
Total allowance for credit losses ........... $1,013,284 $1,291,135 $1,531,358 $944,366 $644,970
(1) Percentages represent the percentage of each loan and lease category to total loans and leases.
The reduction in the ACL compared with December 31, 2010, reflected declines in the ALLL in both the
commercial and consumer portfolios.
The decline in the commercial portfolio ALLL reflected NCOs on loans with specific reserves, and an
overall reduction in the level of commercial Criticized loans. Commercial Criticized loans are commercial loans
rated as OLEM, Substandard, Doubtful, or Loss (see Note 3 of the Notes to Consolidated Financial Statements
for additional information regarding loan risk ratings). As shown in the table below, commercial Criticized
loans declined $927.9 million, or 30%, from December 31, 2010, reflecting upgrade and payment activity.
Table 20 — Criticized Commercial Loan Activity
At December 31,
2011 2010 2009 2008 2007
(dollar amounts in thousands)
Criticized commercial loans, beginning of
period ........................... $3,074,481 $ 4,971,637 $ 3,311,280 $2,736,166 $ 662,425
New additions / increases ............ 1,068,299 1,284,216 4,707,518 1,688,022 2,670,616
Advances ........................ 193,679 298,511 390,872 292,295 282,614
Upgrades to Pass ................... (901,633) (1,456,132) (522,150) (378,027) (271,394)
Payments ......................... (986,919) (1,465,374) (1,843,535) (858,996) (531,255)
Loan losses ....................... (301,300) (558,377) (1,072,348) (168,180) (76,840)
Criticized commercial loans, end of
period ........................... $2,146,607 $ 3,074,481 $ 4,971,637 $3,311,280 $2,736,166
The decline in the consumer-related ALLL reflected the impact of the 2011 automobile securitization (see
Automobile Portfolio discussion), as well as decreases in both the home equity-related and residential mortgage-
related ALLL resulting from improved borrower quality as measured by updated FICO scores.
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