Huntington National Bank 2006 Annual Report Download - page 41

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MANAGEMENT’S DISCUSSION AND ANALYSIS HUNTINGTON BANCSHARES INCORPORATED
Net Charge-offs
While there has been variability at the business line level in losses over the past three years, our overall performance has been
very consistent with our expectations. Results in 2006 were very consistent with 2005 results in the commercial portfolios and
automobile loans and leases. Net charge-offs increased in the residential secured portion of the portfolio. These results are
consistent with expectations, as we continue to operate at or below our expected long-term targets for each portfolio. There is
likely to be variation on a quarterly basis, but we continue to expect our overall charge-offs to remain at the low end of our total
portfolio range as shown in table 19.
Table 19 — Long-term Net Charge-off Ratio Targets
Long-term Targets(1)
Middle market C&I 0.20% - 0.30%
Middle market CRE 0.15% - 0.25%
Small business C&I and CRE 0.50% - 0.60%
Automobile loans 0.65% - 0.75%
Automobile direct financing leases 0.50% - 0.60%
Home equity loans and lines 0.40% - 0.50%
Residential loans 0.15% +/–
Total portfolio 0.35% - 0.45%
(1) Assumes loan and lease portfolio mix comparable to December 31, 2006, and stable economic environment.
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