Huntington National Bank 2014 Annual Report Download - page 56

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NPAs, NALs, AND TDRs
(This section should be read in conjunction with Note 3 of the Notes to Consolidated Financial Statements.)
NPAs and NALs
NPAs consist of (1) NALs, which represent loans and leases no longer accruing interest, (2) OREO properties, and (3) other
NPAs. Any loan in our portfolio may be placed on nonaccrual status prior to the policies described below when collection of principal
or interest is in doubt. Also, when a borrower with discharged non-reaffirmed debt in a Chapter 7 bankruptcy is identified and the
loan is determined to be collateral dependent, the loan is placed on nonaccrual status.
C&I and CRE loans (except for purchased credit impaired loans) are placed on nonaccrual status at 90-days past due, or earlier if
repayment of principal and interest is in doubt. Of the $120.5 million of CRE and C&I-related NALs at December 31, 2014, $65.7
million, or 54%, represented loans that were less than 30-days past due, demonstrating our continued commitment to proactive credit
risk management. With the exception of residential mortgage loans guaranteed by government organizations which continue to accrue
interest, first lien loans secured by residential mortgage collateral are placed on nonaccrual status at 150-days past due. Junior-lien
home equity loans are placed on nonaccrual status at the earlier of 120-days past due or when the related first-lien loan has been
identified as nonaccrual. Automobile and other consumer loans are generally charged-off prior to the loan reaching 120-days past
due.
When loans are placed on nonaccrual, accrued interest income is reversed with current year accruals charged to interest income
and prior year amounts generally charged-off as a credit loss. When, in our judgment, the borrower’s ability to make required interest
and principal payments has resumed and collectability is no longer in doubt, the loan or lease could be returned to accrual status.
The table reflects period-end NALs and NPAs detail for each of the last five years:
Table 13 - Nonaccrual Loans and Leases and Nonperforming Assets
At December 31,
(dollar amounts in thousands) 2014 2013 2012 2011 2010
N
onaccrual loans and leases:
Commercial and industrial $ 71,974 $ 56,615 $ 90,705 $ 201,846 $ 346,720
Commercial real estate 48,523 73,417 127,128 229,889 363,692
Automobile 4,623 6,303 7,823 --- ---
Residential mortgages 96,564 119,532 122,452 68,658 45,010
Home equity 78,560 66,189 59,525 40,687 22,526
Total nonaccrual loans and leases 300,244 322,056 407,633 541,080 777,948
Other real estate owned, net
Residential 29,291 23,447 21,378 20,330 31,649
Commercial 5,748 4,217 6,719 18,094 35,155
Total other real estate, net 35,039 27,664 28,097 38,424 66,804
Other nonperforming assets(1) 2,440 2,440 10,045 10,772 ---
Total nonperforming assets $ 337,723 $ 352,160 $ 445,775 $ 590,276 $ 844,752
N
onaccrual loans as a % of total loans and leases 0.63 % 0.75 % 1.00 % 1.39 % 2.04 %
N
onperforming assets ratio(2) 0.71 0.82 1.09 1.51 2.21
Allowance for loan and lease losses as % of:
N
onaccrual loans and leases 202 % 201 % 189 % 178 % 161 %
N
onperforming assets 179 184 173 163 148
Allowance for credit losses as % of:
N
onaccrual loans and leases 222 % 221 % 199 % 187 % 166 %
N
onperforming assets 197 202 182 172 153
(
1
)
Other nonperforming assets includes certain impaired investment securities.
(
2
)
This ratio is calculated as nonperforming assets divided by the sum of loans and leases, impaired loans held for sale, net other real estate owned,
and other nonperforming assets.