Huntington National Bank 2006 Annual Report Download - page 34

MANAGEMENT’S DISCUSSION AND ANALYSIS HUNTINGTON BANCSHARES INCORPORATED
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.
Commercial and industrial loan and lease commitments and balances outstanding by industry classification code at December 31,
2006 were as follows:
Table 12 — Commercial and Industrial Loans and Leases by Industry Classification Code
At December 31, 2006
Commitments Loans Outstanding
(in thousands of dollars) Amount % Amount %
Industry Classification:
Services $ 3,359,799 26.2% $2,135,915 27.2%
Manufacturing 2,357,190 18.4 1,419,198 18.1
Retail trade 2,175,921 16.9 1,326,383 16.9
Finance, insurance, and real estate 2,037,878 15.9 1,223,630 15.6
Contractors and construction 980,529 7.6 618,794 7.9
Wholesale trade 747,790 5.8 346,854 4.4
Transportation, communications, and utilities 662,972 5.2 406,902 5.2
Agriculture and forestry 302,847 2.4 206,039 2.6
Energy 158,988 1.2 119,286 1.5
Public administration 45,030 0.4 38,364 0.5
Other 14,475 — 8,547 0.1
Total $12,843,419 100.0% $7,849,912 100.0%
Middle market CRE loans and small business CRE loans totaled $4.5 billion at December 31, 2006. These loans were
predominantly for properties located in our primary banking markets, and were diversified by the type of property, as reflected in
the following table:
Table 13 — Commercial Real Estate Loans by Property Type and Borrower Location
At December 31, 2006
Geographic Region
West Total Percent of
(in thousands of dollars) Ohio Michigan Virginia Indiana Other Amount Total
Retail properties $ 413,850 $ 181,180 $ 29,101 $ 71,873 $ — $ 696,004 15.5%
Office 333,798 169,781 49,751 17,028 1,644 572,002 12.7
Unsecured lines to real estate companies 377,375 80,249 11,602 23,372 2,106 494,704 11.0
Industrial and warehouse 234,783 182,105 13,278 39,318 2,372 471,856 10.5
Multi family 306,186 58,764 26,070 68,845 3 459,868 10.2
Single family development 279,756 119,529 18,729 9,881 — 427,895 9.5
Raw land 194,262 128,387 23,965 49,005 5,604 401,223 8.9
Condominium construction 124,679 53,828 4,844 1,043 — 184,394 4.1
Other land uses 119,470 41,788 10,780 11,418 — 183,456 4.1
Hotel 104,767 60,718 4,523 5,154 — 175,162 3.9
Single family land development 113,322 15,126 504 4,988 6,144 140,084 3.1
Recreational 88,183 18,839 6,995 1,882 — 115,899 2.6
Health care 57,213 28,136 11,114 1,821 — 98,284 2.2
Other land development 63,686 12,809 1,700 5,514 — 83,709 1.9
Total $2,811,330 $1,151,239 $212,956 $311,142 $17,873 $4,504,540 100.0%
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 results in 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
32