Huntington National Bank 2010 Annual Report Download - page 70

portfolio declined from $3.7 billion at December 31, 2009, to $2.6 billion at December 31, 2010, and
represented 39% of total CRE loans. Of the loans in the noncore portfolio at December 31, 2010, 49% were
classified as Pass, 95% had guarantors, 99% were secured, and 93% were located within our geographic
footprint. However, it is within the noncore portfolio where most of the credit quality challenges exist. For
example, $0.3 billion, or 13%, of related outstanding balances, are classified as NALs. SAD administered
$1.4 billion, or 54%, of total noncore CRE loans at December 31, 2010. We expect to exit the majority of
noncore CRE relationships over time through normal repayments, possible sales should economically attractive
opportunities arise, or the reclassification to a core CRE relationship if it expands to meet the core criteria.
The table below provides a segregation of the CRE portfolio as of December 31, 2010:
Table 17 — Core Commercial Real Estate Loans by Property Type and Property Location
Ohio Michigan Pennsylvania Indiana Kentucky Florida West Virginia Other Total Amount %
At December 31, 2010
(Dollar amounts in millions)
Core portfolio:
Retail properties . . . ........ $ 458 $ 90 $ 72 $ 75 $ 8 $ 38 $ 30 $364 $1,135 17%
Office.................. 347 151 83 22 12 1 39 53 708 11
Multi family ............. 277 87 40 33 29 — 42 58 566 9
Industrial and warehouse . . . . . 257 81 23 44 3 3 6 82 499 8
Other commercial real estate . . . . 715 138 35 45 8 21 54 118 1,134 17
Total core portfolio .......... 2,054 547 253 219 60 63 171 675 4,042 61
Total noncore portfolio ....... 1,424 412 168 226 36 110 64 169 2,609 39
Total .................... $3,478 $959 $421 $445 $96 $173 $ 235 $844 $6,651 100%
Credit quality data regarding the ACL and NALs, segregated by core CRE loans and noncore CRE loans,
is presented in the following table:
Table 18 — Commercial Real Estate — Core vs. Noncore portfolios
Ending
Balance Prior NCOs ACL $ ACL % Credit Mark(1)
Nonaccrual
Loans
December 31, 2010
(Dollar amounts in millions)
Total core ......................... $4,042 $ 5 $160 3.96% 4.08% $ 15.7
Noncore — SAD(2) ................ 1,400 379 329 23.50 39.80 307.2
Noncore — Other .................. 1,209 5 105 8.68 9.06 40.8
Total noncore ...................... 2,609 384 434 16.63 27.33 348.0
Total commercial real estate ........... $6,651 $389 $594 8.93% 13.96% $363.7
Ending
Balance Prior NCOs ACL $ ACL % Credit Mark(1)
Nonaccrual
Loans
December 31, 2009
Total core ......................... $4,038 $ — $168 4.16%4.16%$ 3.8
Noncore — SAD(2) ................ 1,809 511 410 22.66 39.70 861.0
Noncore — Other .................. 1,842 26 186 10.10 11.35 71.0
Total noncore ...................... 3,651 537 596 16.32 27.05 932.0
Total commercial real estate ........... $7,689 $537 $764 9.94% 15.82% $935.8
(1) Calculated as (Prior NCOs + ACL $) / (Ending Balance + Prior NCOs)
(2) Noncore loans managed by SAD, the area responsible for managing loans and relationships designated as
Classified loans.
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