Huntington National Bank 2010 Annual Report Download - page 166

OLEM = Commercial loans categorized as OLEM are potentially weak. The credit risk may be
relatively minor yet represent a risk given certain specific circumstances. If the potential weaknesses are
not monitored or mitigated, the asset may weaken or inadequately protect the Company’s position in the
future.
Substandard = Commercial loans categorized as Substandard are inadequately protected by the
borrower’s ability to repay, equity, and/or the collateral pledged to secure the loan. These loans have
identified weaknesses that could hinder normal repayment or collection of the debt. It is likely that the
Company will sustain some loss if any identified weaknesses are not mitigated.
Doubtful = Commercial loans categorized as Doubtful have all of the weaknesses inherent in those
loans classified as Substandard, with the added elements of the full collection of the loan is improbable
and that the possibility of loss is high.
Commercial loans categorized as OLEM, Substandard, or Doubtful are considered Criticized. Commercial
loans categorized as Substandard or Doubtful are considered Classified.
The indicator presented for all classes within the automobile loan, home equity, residential mortgage, and
other consumer loan portfolios is the FICO credit bureau score. A FICO credit bureau score is a credit score
developed by Fair Isaac Corporation based on data provided by the credit bureaus. The FICO credit bureau
score is the world’s most used credit score and represents the standard measure of consumer credit risk used
by lenders, regulators, rating agencies, and consumers. The higher the FICO credit bureau score, the better the
odds of repayment and therefore, an indicator of lower credit risk.
The following table presents loan and lease balances by credit quality indicator as of December 31, 2010.
Pass OLEM Substandard Doubtful Total
Credit Risk Profile by UCS classification
(Dollar amounts in thousands)
December 31, 2010
Commercial and Industrial:
Owner occupied .......................... $ 3,265 $159 $ 393 $ 6 $ 3,823
Other commercial and industrial .............. 8,435 265 525 15 9,240
Total C&I ................................. $11,700 $424 $ 918 $21 $13,063
Commercial real estate:
Retail properties .......................... $ 1,284 $128 $ 350 $— $ 1,762
Multi family ............................. 899 79 144 — 1,122
Office.................................. 868 122 133 — 1,123
Industrial and warehouse .................... 668 72 113 — 853
Other commercial real estate ................. 1,221 88 481 1 1,791
Total CRE ................................ $ 4,940 $489 $1,221 $ 1 $ 6,651
750+ 650-749 G650 Other(2) Total
Credit Risk Profile by FICO score(1)
Automobile loans and leases ......................... $2,516 $2,267 $725 $107 $5,615
Home equity loans and lines-of-credit:
Secured by first-lien ............................. 1,644 1,082 314 1 3,041
Secured by second-lien ........................... 2,224 1,768 679 1 4,672
Residential mortgage .............................. 1,978 1,580 796 146 4,500
Other consumer loans .............................. 207 235 102 20 564
(1) Reflects currently updated customer credit scores.
(2) Reflects deferred fees and costs, loans in process, loans to legal entities, etc.
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