Huntington National Bank 2010 Annual Report Download - page 65

Total consumer loans were $18.4 billion at December 31, 2010, and represented 48% of our total
credit exposure. The consumer portfolio was diversified among home equity loans, residential mortgages,
and automobile loans and leases (see Consumer Credit discussion).
Automobile loans/leases — Automobile loans/leases are primarily comprised of loans made through
automotive dealerships and includes exposure in selected states outside of our primary banking markets.
In 2009, we exited several states, including Florida, Arizona, and Nevada. In 2010, we expanded into
eastern Pennsylvania and five New England states. The recent expansions included hiring experienced
colleagues with existing dealer relationships in those markets. No state outside of our primary banking
market represented more than 5% of our total automobile loan and lease portfolio at December 31, 2010.
Our automobile lease portfolio represents an immaterial portion of the total portfolio as we exited the
automobile leasing business during the 2008 fourth quarter.
Home equity — Home equity lending includes both home equity loans and lines-of-credit. This type
of lending, which is secured by a first- or second- lien on the borrower’s residence, allows customers to
borrow against the equity in their home. Given the current low interest rate environment, many borrowers
have utilized the line-of-credit home equity product as the primary source of financing their home. As a
result, the proportion of first-lien loans has increased significantly in our portfolio over the past 24 months.
Real estate market values at the time of origination directly affect the amount of credit extended and, in
the event of default, subsequent changes in these values may impact the severity of losses. We actively
manage the amount of credit extended through debt-to-income policies and LTV policy limits.
Residential mortgages — Residential mortgage loans represent loans to consumers for the purchase
or refinance of a residence. These loans are generally financed over a 15- to 30- year term, and in most
cases, are extended to borrowers to finance their primary residence. Generally, our practice is to sell a
significant portion of our fixed-rate originations in the secondary market. As such, the majority of the
loans in our portfolio are ARMs. These ARMs primarily consist of a fixed-rate of interest for the first 3
to 5 years, and then adjust annually. These loans comprised approximately 57% of our total residential
mortgage loan portfolio at December 31, 2010.
Other consumer loans/leases — Primarily consists of consumer loans not secured by real estate or
automobiles, including personal unsecured loans.
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