Huntington National Bank 2010 Annual Report Download - page 75

NPAs, NALs, AND TDRs
(This section should be read in conjunction with Significant Item 3.)
NPAs AND NALs
NPAs consist of (1) NALs, which represent loans and leases no longer accruing interest, (2) impaired
loans held for sale, (3) OREO properties, and (4) other NPAs. A C&I or CRE loan is generally placed on
nonaccrual status when collection of principal or interest is in doubt or when the loan is 90-days past due.
Residential mortgage loans are placed on nonaccrual status at 180-days past due, and a charge-off recorded if
it is determined that insufficient equity exists in the collateral property to support the entire outstanding loan
amount. A home equity loan is placed on nonaccrual status at 180-days past due, and a charge-off recorded if
it is determined there is not sufficient equity in the collateral property to cover our position. For loans secured
by residential real estate, the collateral equity position is determined by a current property valuation based on
an expected marketing time period consistent with the market. When interest accruals are suspended, accrued
interest income is reversed with current year accruals charged to earnings and prior-year amounts generally
charged-off as a credit loss. When, in our judgment, the borrower’s ability to make required interest and
principal payments has resumed and collectability is no longer in doubt, the loan or lease is returned to accrual
status.
Table 20 reflects period-end NALs and NPAs detail for each of the last five years. Table 21 details the
Franklin-related impacts to NALs and NPAs for each of the last five years. There were no Franklin-related
NALs or NPAs at December 31, 2006.
Table 20 — Nonaccrual Loans and Nonperforming Assets
2010 2009 2008 2007 2006
At December 31,
(Dollar amounts in thousands)
Commercial and industrial(1) . . . ........ $346,720 $ 578,414 $ 932,648 $ 87,679 $ 58,393
Commercial real estate ................ 363,692 935,812 445,717 148,467 37,947
Total residential mortgages(1) . . . ........ 45,010 362,630 98,951 59,557 32,527
Home equity ........................ 22,526 40,122 24,831 24,068 15,266
Total nonaccrual loans and leases ........ 777,948 1,916,978 1,502,147 319,771 144,133
Other real estate owned, net
Residential ..................... 31,649 71,427 63,058 60,804 47,898
Commercial ..................... 35,155 68,717 59,440 14,467 1,589
Total other real estate, net .............. 66,804 140,144 122,498 75,271 49,487
Impaired loans held for sale(2) . . ........ —969 12,001 73,481 —
Other nonperforming assets(3) . . . ........ —— — 4,379 —
Total nonperforming assets ............. $844,752 $2,058,091 $1,636,646 $472,902 $193,620
Nonaccrual loans as a % of total loans and
leases ........................... 2.04% 5.21% 3.66% 0.80% 0.55%
Nonperforming assets ratio(4) . . . ........ 2.21 5.57 3.97 1.18 0.74
Nonperforming Franklin assets(1)
Commercial ...................... $—$ — $ 650,225 $ — $ —
Residential mortgage ................ —299,670 — — —
Other real estate owned .............. 9,477 23,826 — — —
Home equity ...................... —15,004 — — —
Total Nonperforming Franklin assets .... $ 9,477 $ 338,500 $ 650,225 $ — $ —
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