Huntington National Bank 2005 Annual Report Download - page 55

Download and view the complete annual report

Please find page 55 of the 2005 Huntington National Bank annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 142

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142

MANAGEMENT’S DISCUSSION AND ANALYSIS HUNTINGTON BANCSHARES INCORPORATED
Table 10 — Loan and Lease Portfolio Composition
At December 31,
(in millions of dollars) 2005 2004 2003 2002 2001
Commercial(1)
Middle market commercial and industrial $ 5,084 20.6% $ 4,666 19.3% $ 4,416 19.7% $ 4,757 21.7% $ 4,922 21.7%
Construction 1,522 6.2 1,602 6.6 1,264 5.7 983 4.5 1,150 5.1
Commercial 2,015 8.2 1,917 7.9 1,919 8.6 1,896 8.7 1,575 6.9
Total middle market real estate 3,537 14.4 3,519 14.5 3,183 14.3 2,879 13.2 2,725 12.0
Small business commercial and industrial
and commercial real estate 2,224 9.0 2,118 8.8 1,887 8.4 1,695 7.7 2,607 11.5
Total commercial 10,845 44.0 10,303 42.6 9,486 42.4 9,331 42.6 10,254 45.2
Consumer:
Automobile loans 1,985 8.0 1,949 8.1 2,992 13.4 3,042 13.9 2,853 12.6
Automobile leases 2,289 9.3 2,443 10.1 1,902 8.5 874 4.0 110 0.5
Home equity 4,639 18.8 4,555 18.9 3,734 16.7 3,142 14.3 3,518 15.5
Residential mortgage 4,193 17.0 3,829 15.9 2,531 11.3 1,746 8.0 1,129 5.0
Other loans 521 2.0 481 2.0 430 1.9 452 2.1 607 2.6
Total consumer 13,627 55.1 13,257 55.0 11,589 51.8 9,256 42.3 8,217 36.2
Total loans and direct financing leases 24,472 99.1 23,560 97.6 21,075 94.2 18,587 84.9 18,471 81.4
Operating lease assets 229 0.9 587 2.4 1,260 5.6 2,201 10.0 3,006 13.2
Securitized loans —— — — 37 0.2 1,119 5.1 1,225 5.4
Total credit exposure $24,701 100.0% $24,147 100.0% $22,372 100.0% $21,907 100.0% $22,702 100.0%
Total automobile exposure(2) $ 4,503 18.2% $ 4,979 20.6% $ 6,191 27.7% $ 7,236 33.0% $ 7,194 31.7%
(1) There were no commercial loans outstanding that would be considered a concentration of lending to a particular industry or group of industries.
(2) Total automobile loans and leases, operating lease assets, and securitized loans.
Commercial Credit
Commercial credit approvals are based on the financial strength of the borrower, assessment of the borrower’s management
capabilities, industry sector trends, type of exposure, transaction structure, and the general economic outlook. While these are the
primary factors considered, there are a number of other factors that may be considered in the decision process. There are two
processes for approving credit risk exposures. The first involves a centralized loan approval process for the standard products and
structures utilized in small business lending. In this centralized decision environment, individual credit authority is granted to
certain individuals on a regional basis to preserve our local decision-making focus. The second, and more prevalent approach,
involves individual approval of exposures. These approvals are consistent with the authority delegated to officers located in the
geographic regions who are experienced in the industries and loan structures over which they have responsibility.
53