Huntington National Bank 2009 Annual Report Download - page 75

Within the C&I portfolio, the automotive industr
y
se
g
ment continued to be stressed and is discussed
belo
w.
A
utomotive In
d
ustr
y
The followin
g
table provides a summar
y
of loans and total exposure includin
g
both loans and unused
commitments and standb
y
letters of credit to companies related to the automotive industr
y
since December 31,
2009. T
h
e automo
bil
e
i
n
d
ustr
y
supp
li
er exposure
i
sem
b
e
dd
e
d
pr
i
mar
ily i
n our C&I port
f
o
li
ow
i
t
hi
nt
h
e
Commercial Bankin
g
se
g
ment, while the dealer exposure is ori
g
inated and mana
g
ed within the AFDS busines
s
se
g
ment.
Table 24 — Automotive Industr
y
Ex
p
osure
(
1
)
Loa
n
s
Outstandin
g
%o
fT
o
t
a
l
L
oa
n
s
To
t
al
Ex
p
osur
e
Loa
n
s
Outstandin
g
%o
fT
o
t
a
l
L
oa
n
s
To
t
al
Ex
p
osur
e
2009 2008
December
31,
(
In millions
)
Su
pp
liers:
Domest
ic
.................
$
163.3
$
260.7
$
182.4
$
330.9
Fore
ign
..................
23
.
9
7
1
.
8
32.7 4
5
.7
Tota
l
su
ppli
ers
...............
187.2 0.51
%
332.5 21
5
.1 0.
5
2% 376.
6
Dea
l
er
:
F
l
oor
pl
an —
d
omest
ic
.......
388
.
0 692
.
1
55
2.6 746.
8
Floor plan — forei
g
n
.
.......
283.0 554.6
4
08.1 544.
1
Othe
r
....................
373.0 530.0 345.7 464.0
Total deale
r
.................
1
,
044.0 2.84 1
,
776.
7
1
,
306.4 3.18 1
,
754.9
T
o
t
a
l
au
t
o
m
o
ti
ve
............
$1
,
231.2 3.35% $2
,
109.
2
$1
,
521.5 3.70% $2
,
131.
5
(1) Com
p
anies wit
h
H
25% of revenue derived from the automotive industr
y
.
Althou
g
h we do not have direct exposure to the automobile manufacturin
g
companies, we do have limite
d
exposure to automo
bil
e
i
n
d
ustr
y
supp
li
ers, an
d
automo
bil
e
d
ea
l
er-re
l
ate
d
exposures. W
hil
e we cont
i
nue t
o
b
e
li
eve t
h
at t
hi
s
i
n
d
ustr
y
represents a
high d
e
g
ree o
f
r
i
s
k
,t
h
epr
i
mar
yi
mpact to automo
bil
e
i
n
d
ustr
y
supp
li
er
s
h
as
lik
e
ly
a
l
rea
dy
occurre
d
,
gi
ven t
h
esu
b
stant
i
a
l
a
dj
ustments to pro
d
uct
i
on
i
n 2008 an
d
2009. As a resu
l
to
f
our
g
eo
g
raphic locations and the above referenced exposure, we have closel
y
monitored the entire automobil
e
i
n
d
ustr
y
, part
i
cu
l
ar
ly
t
h
e recent events assoc
i
ate
d
w
i
t
h
Genera
l
Motors an
d
C
h
r
y
s
l
er,
i
nc
l
u
di
n
gb
an
k
ruptc
y
fili
n
g
s, p
l
ant c
l
os
i
n
g
s, pro
d
uct
i
on suspens
i
on, an
d
mo
d
e
l
e
li
m
i
nat
i
ons. We
h
ave ant
i
c
i
pate
d
t
h
es
ig
n
ifi
cant
reductions in production across the industr
y
that will result in additional economic distress in some of ou
r
markets. Our eastern Michi
g
an and northern Ohio markets are particularl
y
exposed to these reductions
,
a
l
t
h
ou
gh
a
ll
our mar
k
ets are a
ff
ecte
d
. We ant
i
c
i
pate t
h
e
i
mpact w
ill
resu
l
t
i
na
ddi
t
i
ona
l
stress t
h
rou
gh
out our
commercial and consumer loan portfolios, as secondar
y
and tertiar
y
businesses are affected b
y
the actions o
f
the manufacturers. However, as these actions were anticipated, man
y
of the potential impacts have bee
n
m
i
t
ig
ate
d
t
h
rou
gh
c
h
an
g
es
i
nun
d
erwr
i
t
i
n
g
cr
i
ter
i
aan
d
re
gi
ona
lly f
ocuse
d
po
li
c
i
es an
d
proce
d
ures. W
i
t
hi
nt
h
e
AFDS port
f
o
li
o, our
d
ea
l
er se
l
ect
i
on cr
i
ter
i
aan
df
ocus
i
sonmu
l
t
i
p
l
e
b
ran
dd
ea
l
ers
hi
p
g
roups, as we
h
av
e
immaterial exposure to sin
g
le-brand dealerships
.
As shown in the table above, at December 31, 2009, our total direct ex
p
osure to the automotive su
pp
lie
r
se
g
ment was $332.5 million, of which $187.2 million represented loans outstandin
g
. We included companie
s
that derive more than 2
5
% of their revenues from contracts with automobile manufacturin
g
companies. Thi
s
l
ow
l
eve
l
o
f
exposure
i
sre
fl
ect
i
ve o
f
our
i
n
d
ustr
y
-
l
eve
l
r
i
s
k
-
li
m
i
ts approac
h
.
W
hil
et
h
e ent
i
re automot
i
ve
i
n
d
ustr
yi
sun
d
er s
ig
n
ifi
cant pressure as ev
id
ence
dby
as
ig
n
ifi
cant re
d
uct
i
o
n
i
n new car sa
l
es an
d
t
h
e resu
l
t
i
n
g
pro
d
uct
i
on
d
ec
li
nes, we
b
e
li
eve t
h
at our
fl
oorp
l
an exposure w
ill
not
b
e
67