Huntington National Bank 2014 Annual Report Download - page 128

122
(1)
N
ALs are included in this aging analysis based on the loan's past due status.
(2) All amounts represent accruing purchased credit-impaired loans related to the Camco Financial and FDIC-assisted Fidelity Bank
acquisition. Under the applicable accounting guidance (ASC-310-30), the loans were recorded at fair value upon acquisition and
remain in accruing status.
(3) Includes $55,012 thousand guaranteed by the U.S. government.
(4) Includes $87,985 thousand guaranteed by the U.S. government.
Allowance for Credit Losses
The ACL is increased through a provision for credit losses that is charged to earnings, based on Management’s quarterly
evaluation of the factors previously mentioned, and is reduced by charge-offs, net of recoveries, and the ACL associated with
securitized or sold loans. There were no material changes in assumptions or estimation techniques compared with prior periods that
impacted the determination of the current period’s ALLL and AULC.
During a 2013 review of our consumer portfolios, we identified additional loans associated with borrowers who had filed Chapter
7 bankruptcy and had not reaffirmed their debt, thus meeting the definition of collateral dependent per OCC regulatory guidance.
These loans were not identified in the 2012 third quarter implementation of the OCC’s regulatory guidance. The bankruptcy court’s
discharge of the borrower’s debt is considered a concession when the discharged debt is not reaffirmed, and as such, the loan is placed
on nonaccrual status, and written down to collateral value, less anticipated selling costs. As a result of the review of our existing
consumer portfolios, additional NCOs of $22.8 million were recorded in 2013. The majority of the NCO impact was in the home
equity portfolio and relates to junior-lien loans that meet the regulatory guidance.
The following table presents ALLL and AULC activity by portfolio segment for the years ended December 31, 2014, 2013, and
2012:
Commercial Commercial Home Residential Other
and Industrial Real Estate Automobile Equity Mortgage Consumer Total
(dollar amounts in thousands)
Year ended December 31, 2014:
ALLL balance, beginning of period $ 265,801 $ 162,557 $ 31,053 $ 111,131 $ 39,577 $ 37,751 $ 647,870
Loan charge-offs (76,654) (24,704) (31,330) (54,473) (25,946) (33,494) (246,601)
Recoveries of loans previously
charged-off 44,531 34,071 13,762 17,526 6,194 5,890 121,974
Provision for loan and lease losses 53,317 (69,085) 19,981 22,229 27,386 29,254 83,082
Allowance for loans sold or
transferred to loans held for sale --- --- --- --- --- (1,129) (1,129)
ALLL balance, end of period $ 286,995 $ 102,839 $ 33,466 $ 96,413 $ 47,211 $ 38,272 $ 605,196
AULC balance, beginning of period $ 49,596 $ 9,891 $ --- $ 1,763 $ 9 $ 1,640 $ 62,899
Provision for unfunded loan
commitments and letters of credit (608) (3,850) --- 161 (1) 2,205 (2,093)
AULC balance, end of period $ 48,988 $ 6,041 $ --- $ 1,924 $ 8 $ 3,845 $ 60,806
ACL balance, end of period $ 335,983 $ 108,880 $ 33,466 $ 98,337 $ 47,219 $ 42,117 $ 666,002