Huntington National Bank 2005 Annual Report Download - page 56

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MANAGEMENT’S DISCUSSION AND ANALYSIS HUNTINGTON BANCSHARES INCORPORATED
Commercial and industrial loan commitments and balances outstanding by industry classification code as of December 31, 2005,
were as follows:
Table 11 — Commercial and Industrial Loans by Industry Classification Code
At December 31, 2005
Commitments Loans Outstanding
(in thousands of dollars) Amount % Amount %
Industry Classification:
Services $3,017,705 26.2% $1,955,613 28.7%
Manufacturing 2,084,924 18.1 1,152,619 16.9
Retail trade 1,932,962 16.8 1,245,250 18.3
Finance, insurance, and real estate 1,837,506 16.0 1,005,204 14.8
Contractors and construction 699,719 6.1 272,041 4.0
Wholesale trade 905,919 7.9 534,289 7.8
Transportation, communications, and utilities 565,961 4.9 342,806 5.0
Agriculture and forestry 147,972 1.3 107,924 1.6
Energy 191,953 1.7 117,784 1.7
Public administration 94,362 0.8 42,783 0.6
Other 32,950 0.2 32,895 0.6
Total $11,511,933 100.0% $6,809,208 100.0%
Commercial real estate loans at December 31, 2005, were predominantly for properties located in our primary banking markets.
These loans, including both middle market and small business commercial real estate loans, were well diversified by the type of
property, as reflected in the following table:
Table 12 — Commercial Real Estate Loans by Property Type and Location
At December 31, 2005
Geographic Region
West Total Percent of
(in thousands of dollars) Ohio Michigan Virginia Indiana Other Amount Total
Retail properties $ 341,059 $ 174,265 $ 45,659 $ 80,006 $ — $ 640,989 15.9%
Single family development 322,292 170,232 24,056 8,628 6,102 531,310 13.2
Industrial and warehouse 226,361 181,135 14,263 34,005 2,689 458,453 11.4
Office 203,712 115,706 40,438 76,647 1,277 437,780 10.8
Unsecured lines to real estate companies 270,757 79,308 12,889 54,788 2,287 420,029 10.4
Multi family 229,998 56,873 40,840 84,470 1,702 413,883 10.3
Raw land 180,614 94,810 19,568 9,870 5,131 309,993 7.7
Other land uses 86,527 45,117 11,194 12,875 — 155,713 3.9
Single family land development 103,201 14,357 987 6,063 1,379 125,987 3.1
Other land development 92,260 15,952 1,771 15,655 — 125,638 3.1
Health care 39,748 48,107 9,088 12,468 — 109,411 2.7
Recreational 68,766 21,940 13,387 2,470 — 106,563 2.6
Condominium construction 59,877 32,596 8,403 2,204 — 103,080 2.6
Hotel 38,001 45,180 5,150 5,514 3,497 97,342 2.4
Total $2,263,173 $1,095,578 $247,693 $405,663 $24,064 $4,036,171 100.0%
All C&I and CRE credit extensions are assigned internal risk ratings, reflecting the borrower’s probability-of-default and loss-in-
event-of-default. This two-dimensional rating methodology, which has 192 individual loan grades, provides granularity in the
portfolio management process. The probability-of-default is rated on a scale of 1-12 and is applied at the borrower level. The
loss-in-event-of-default is rated on a scale of 1-16 and is associated with each individual credit exposure based on the type of
credit extension and the underlying collateral.
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