Huntington National Bank 2012 Annual Report Download - page 144

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expected cash flows or collateral value, less selling costs. In certain instances, the ALLL may decrease as a result of payments made
in connection with the modification.
Commercial loan TDRs – In instances where the bank substantiates that it will collect its outstanding balance in full, the note is
considered for return to accrual status upon the borrower sustaining sufficient cash flows for a six-month period of time. This six-
month period could extend before or after the restructure date. If a charge-off was taken as part of the restructuring, any interest or
principal payments received on that note are applied to first reduce the bank’s outstanding book balance and then to recoveries of
charged-off principal, unpaid interest, and/or fee expenses.
Residential Mortgage, Automobile, Home Equity, and Other Consumer loan TDRs – Modified loans identified as TDRs are
aggregated into pools for analysis. Cash flows and weighted average interest rates are used to calculate impairment at the pooled-loan
level. Once the loans are aggregated into the pool, they continue to be classified as TDRs until contractually repaid or charged-off.
Residential mortgage loans not guaranteed by a U.S. government agency such as the FHA, VA, and the USDA, including TDR
loans, are reported as accrual or nonaccrual based upon delinquency status. Nonaccrual TDRs are those that are greater than 150-days
contractually past due. Loans guaranteed by U.S. government organizations continue to accrue interest upon delinquency.
The following table presents by class and by the reason for the modification the number of contracts, post-
modification outstanding balance, and the financial effects of the modification for the years ended December 31, 2012 and
2011:
New Troubled Debt Restructurings During The Year Ended(1)
December 31, 2012 December 31, 2011
Post-modification
Outstanding Post-modification
(dollar amounts in thousands) Number of Ending Financial effects Number of Outstanding Financial effects
Contracts Balance of modification(2) Contracts Balance of modification(2)
C&I - Owner occupied:(3)
Interest rate reduction 28 $ 10,501 $ 145 40 $ 19,152 $ (531)
Amortization or maturity date
change 95 23,337 660 60 22,378 (1,838)
Other 16 4,923 1,089 7 3,373 231
Total C&I - Owner occupied 139 $ 38,761 $ 1,894 107 $ 44,903 $ (2,138)
C&I - Other commercial and
industrial:(3)
Interest rate reduction 27 $ 7,436 $ (2) 28 $ 22,519 $ (74)
Amortization or maturity date
change 141 76,814 (3,037) 73 27,822 (176)
Other 32 37,202 1,265 31 56,184 (3,131)
Total C&I - Other commercial and
industrial 200 $ 121,452 $ (1,774) 132 $ 106,525 $ (3,381)
CRE - Retail properties:(3)
Interest rate reduction 9 $ 6,883 $ 957 9 $ 47,473 $ 4,242
Amortization or maturity date
change 15 4,472 (25) 20 31,521 6,112
Other 3 1,680 (1) 7 15,672 1,267
Total CRE - Retail properties 27 $ 13,035 $ 931 36 $ 94,666 $ 11,621
CRE - Multi family:(3)
Interest rate reduction 11 $ 1,288 $ (27) 13 $ 6,601 $ (208)
Amortization or maturity date
change 32 3,554 (1) 10 2,744 22
Other 7 7,961 668 3 869 388
Total CRE - Multi family 50 $ 12,803 $ 640 26 $ 10,214 $ 202