Huntington National Bank 2009 Annual Report Download - page 167

2009 2008 2007
Year Ended December
31,
(
In thousands
)
Recorded balance of im
p
aired loans, at end of
y
ear(1)
:
W
i
t
h
spec
ifi
c reserves ass
ig
ne
d
to t
h
e
l
oan an
dl
eas
e
b
a
l
ances
(
2
)
......................................
$
873
,
215
$
1
,
122
,
575
$
1
,
318
,
51
8
W
i
t
h
no spec
ifi
c reserves ass
ig
ne
d
to t
h
e
l
oan an
dl
ease
balance
s
.........................................
2
21
,
384 75
,
799 33
,
06
2
T
o
t
al
..............................................
$1
,
094
,
599 $1
,
198
,
374 $1
,
351
,
580
A
vera
g
e balance of impaired loans for the
y
ear(1
)
.............
$1
,
010
,
044 $1
,
369
,
857 $ 424
,
79
7
A
llowance for loan and lease losses on im
p
aired loans(1
)
........
175
,
442 301
,
457 142
,
05
8
(1) 2009 includes impaired commercial and industrial loans and commercial real estate loans with outstandin
g
balances
g
reater than
$
1 million. 2008 and prior periods includes impaired commercial and industrial loan
s
and commercial real estate loans with outstandin
g
balances
g
reater than
$
1 million for business-bankin
g
loans, and $500,000 for all other loans. A loan is impaired when it is probable that Huntin
g
ton will b
e
unable to collect all amounts due accordin
g
to the contractual terms of the loan a
g
reement. Impaired loan
s
are
i
nc
l
u
d
e
di
n non-per
f
orm
i
n
g
assets. T
h
e amount o
fi
nterest reco
g
n
i
ze
di
n 2009, 2008 an
d
2007 on
impaired loans while the
y
were considered impaired was
$
0.1 million,
$
55.8 million, and
$
0.9 million
,
respectivel
y
. The recover
y
of the investment in impaired loans with no specific reserves
g
enerall
y
is
expecte
df
rom t
h
esa
l
eo
f
co
ll
atera
l
, net o
f
costs to se
ll
t
h
at co
ll
atera
l.
(2) As a result of the troubled debt restructurin
g
, the loans to Franklin of
$
1.2 billion and
$
0.7 billion ar
e
i
nc
l
u
d
e
di
n
i
mpa
i
re
dl
oans at t
h
een
d
o
f
2007 an
d
2008, respect
i
ve
ly.
As s
h
own
i
nt
h
eta
bl
ea
b
ove,
i
n 2008, t
h
e econom
i
c reserve com
p
onent o
f
t
h
e AULC was rec
l
ass
ifi
e
d
t
o
t
h
e econom
i
c reserve component o
f
t
h
e ALLL, resu
l
t
i
n
gi
nt
h
e ent
i
re econom
i
c reserve component o
f
t
h
eAC
L
residin
g
in the ALLL
.
The $582.3 million increase in the ALLL primaril
y
reflected an increase in specific reserves associate
d
w
i
t
hi
mpa
i
re
dl
oans an
d
an
i
ncrease assoc
i
ate
d
w
i
t
h
r
i
s
k
-
g
ra
d
em
ig
rat
i
on, pre
d
om
i
nant
ly i
nt
h
e commerc
i
a
l
port
f
o
li
o. T
h
e
i
ncrease
i
sa
l
so t
h
e resu
l
to
f
ac
h
an
g
e
i
n est
i
mate resu
l
t
i
n
gf
rom t
h
e 2009
f
ourt
h
quarter rev
i
e
w
of our ACL practices and assumptions, consistin
g
of
:
• Approximatel
y$
200 million increase in the
j
ud
g
mental component
.
• Approximatel
y$
200 million allocated primaril
y
to the commercial real estate (CRE) portfolio address-
in
g
the severit
y
of CRE loss-
g
iven-default percenta
g
es and a lon
g
er term view of the loss emer
g
enc
e
time
p
eriod.
• Approximatel
y
$50 million from updatin
g
the consumer reserve factors to include the curren
t
d
e
li
nquenc
y
status.
Part
i
a
ll
yo
ff
set
b
y:
• $130 million of previousl
y
established Franklin specific reserves utilized to absorb related net char
g
e
-
o
ff
s
d
ue to t
h
e 2009
fi
rst quarter Fran
kli
n restructur
i
n
g.
9. GOODWILL AND OTHER INTANGIBLE A
SS
ET
S
Dur
i
n
g
t
h
e secon
d
quarter o
f
2009, Hunt
i
n
g
ton reor
g
an
i
ze
di
ts
i
nterna
l
report
i
n
g
structure. T
h
eRe
gi
ona
l
Bankin
g
reportin
g
unit, which throu
g
h March 31, 2009 had been mana
g
ed
g
eo
g
raphicall
y
, is now mana
g
ed o
n
a pro
d
uct se
g
ment approac
h
.Re
gi
ona
l
Ban
ki
n
g
was
di
v
id
e
di
nto Reta
il
an
d
Bus
i
ness Ban
ki
n
g
, Commerc
i
a
l
Ban
ki
n
g
,an
d
Commerc
i
a
l
Rea
l
Estate se
g
ments. Re
gi
ona
l
Ban
ki
n
gg
oo
d
w
ill
was ass
ig
ne
d
to t
h
e new report
i
n
g
un
i
ts a
ff
ecte
d
us
i
n
g
are
l
at
i
ve
f
a
i
rva
l
ue a
ll
ocat
i
on. Auto F
i
nance an
d
Dea
l
er Serv
i
ces (AFDS), Pr
i
vat
e
Financial Group (PFG), and Treasur
y
/ Other remained essentiall
y
unchan
g
ed. A rollforward of
g
oodwill b
y
1
5
9