Huntington National Bank 2012 Annual Report Download - page 97

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NCOs
Total NCOs for the 2012 fourth quarter were $70.1 million, or an annualized 0.69% of average total loans and leases. NCOs in
the year-ago quarter were $83.9 million, or an annualized 0.85%.
Total C&I NCOs for the 2012 fourth quarter were $7.1 million, or an annualized 0.17%, down from $10.9 million, or an
annualized 0.31% of related loans, in the year-ago quarter. Total CRE NCOs for the 2012 fourth quarter were $21.4 million, or an
annualized 1.56%, down from $28.4 million, or an annualized 1.91% in the year-ago quarter. These declines reflected improvement
in the overall credit quality of the portfolio.
Total consumer NCOs in the current quarter were $41.7 million, or an annualized 0.91%, down from $44.6 million or an
annualized 0.92% of average total consumer loans in the year-ago quarter.
Residential mortgage NCOs were $9.7 million, or an annualized 0.75%, relatively unchanged when compared with $9.7 million,
or an annualized 0.77% in the year-ago quarter.
Home equity NCOs in the 2012 fourth quarter were $25.0 million, or an annualized 1.20%. This represented an increase from
$23.4 million, or an annualized 1.15%, in the year-ago quarter.
Automobile loan and lease NCOs were $1.9 million, or an annualized 0.17%, down from $4.2 million, or an annualized 0.30%, in
the year-ago quarter. The relatively low level of NCOs in the current quarter reflected the continued high credit quality of originations
and a strong resale market for used automobiles.
NPAs and NALs
Total NALs were $407.6 million at December 31, 2012, and represented 1.00% of total loans and leases. This was down $133.4
million, or 25%, from $541.1 million, or 1.39%, of total loans and leases at the end of the year ago period. This decrease primarily
reflected substantial improvement in the C&I and CRE portfolio, partially offset by an increase in consumer NALs resulting from
Chapter 7 bankruptcy consumer loans.
NPAs, which include NALs, were $445.8 million at December 31, 2012, and represented 1.09% of total loans and leases. This
was significantly lower than $590.3 million, or 1.51% of related assets at the end of the year-ago period. The $144.5 million decrease
in NPAs from the end of the year-ago period primarily reflected the $133.4 million decrease in NALs discussed above.
The over 90-day delinquent, but still accruing, ratio for total loans not guaranteed by a U.S. government agency, was 0.27% at
December 31, 2012, representing an eight basis point increase compared with December 31, 2011.
ACL
(This section should be read in conjunction with Note 3 of the Notes to Consolidated Financial Statements.)
At December 31, 2012, the ALLL was $769.1 million, down $195.8 million, or 20%, from $964.8 million at December 31,
2011. Expressed as a percent of period-end loans and leases, the ALLL ratio at December 31, 2012, was 1.89%, a decline from 2.48%
at December 31, 2011. The ALLL as a percent of NALs was 189% at December 31, 2012, an increase from 178% at the end of 2011.
At December 31, 2012, the AULC was $40.7 million, a decrease of $7.8 million, or 16%, compared with December 31, 2011.
On a combined basis, the ACL as a percent of total loans and leases at December 31, 2012, was 1.99%, down from 2.60% at
December 31, 2011. This decline was primarily a result of the improvement in the underlying quality of the portfolio. While the total
ACL balance declined, and the resulting ACL-to-loan coverage ratio declined, the ACL as a percent of NALs improved to 199% at
December 31, 2012 from 187% at December 31, 2011, indicating additional strength in the ACL level relative to the level of problem
loans.