Huntington National Bank 2011 Annual Report Download - page 146

after December 15, 2011. Early adoption is permitted, including for annual and interim goodwill impairment tests
performed as of a date before September 15, 2011, if an entity’s financial statements for the most recent annual
or interim period have not yet been issued. Management adopted the ASU as of September 30, 2011 (See
Note 7).
ASU 2011-10 — Property, Plant, and Equipment (Topic 360): Derecognition of In-Substance Real
Estate. The ASU amends Topic 360 to clarify that when a reporting entity ceases to have a controlling financial
interest (as described in ASC 810 “Consolidation”) in a subsidiary that is in-substance real estate as a result of
default on the subsidiary’s nonrecourse debt, the reporting entity should apply the guidance in Subtopic 360-20 to
determine whether it should derecognize the in-substance real estate. The clarification is meant to eliminate
diversity in practice. The amendments are effective for fiscal years, and interim periods within those years,
beginning on or after June 15, 2012. Early adoption is permitted. Management is currently evaluating the impact
of the guidance on Huntington’s Consolidated Financial Statements.
ASU 2011-11 — Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities. The
ASU amends Topic 210 by requiring additional improved information to be disclosed regarding financial
instruments and derivatives instruments that are offset in accordance with the conditions under ASC 210-20-45
or ASC 810-10-45 or subject to an enforceable master netting arrangement or similar agreement. The
amendments are effective for annual reporting periods beginning on or after January 1, 2013, and interim periods
within those annual periods. The disclosures required by the amendments should be applied retrospectively for
all comparative periods presented. Management does not believe the amendments will have a material impact on
Huntington’s Consolidated Financial Statements.
ASU 2011-12 — Comprehensive Income (Topic 220): Deferral of the Effective Date for Amendments
to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in
Accounting Standards Update No. 2011-05. The ASU defers the effective date pertaining to reclassification
adjustments out of accumulated other comprehensive income in ASU 2011-05, Comprehensive Income (Topic
220): Presentation of Comprehensive Income, until the Board is able to redeliberate the matter. Management
does not believe the deferral will have a material impact on Huntington’s Consolidated Financial Statements.
3. LOANS AND LEASES AND ALLOWANCE FOR CREDIT LOSSES
Loans and direct financing leases for which Huntington has the intent and ability to hold for the foreseeable
future (at least 12 months), or until maturity or payoff, are classified in the Consolidated Balance Sheets as loans
and leases. Except for loans which are subject to fair value requirements, loans and leases are carried at the
principal amount outstanding, net of unamortized deferred loan origination fees and costs and net of unearned
income. At December 31, 2011 and 2010, the aggregate amount of these net unamortized deferred loan
origination fees and net unearned income was $122.5 million and $158.2 million, respectively.
Loan and Lease Portfolio Composition
The Company’s primary portfolios are: C&I, CRE, automobile, residential mortgage, home equity, and
other consumer loans. Classes are generally disaggregations of a portfolio. The classes within the C&I portfolio
are: owner occupied and nonowner occupied. The classes within the CRE portfolio are: retail properties, multi-
family, office, industrial and warehouse, and other CRE. The classes within the home equity portfolio are: first-
lien loans and second-lien loans. The automobile, residential mortgage, and other consumer loan portfolios are
not further segregated into classes.
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