Huntington National Bank 2013 Annual Report Download - page 125

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(dollar amounts in thousands)
Year ended December 31, 2012:
ALLL balance, beginning of period $ 275,367 $ 388,706 $ 38,282 $ 143,873 $ 87,194 $ 31,406 $ 964,828
Loan charge-offs (101,475) (118,051) (26,070) (124,286) (52,228) (33,090) (455,200)
Recoveries of loans previously
charged-off 37,227 39,622 16,628 7,907 4,305 7,049 112,738
Provision for loan and lease losses 29,932 (24,908) 12,964 91,270 24,046 21,889 155,193
Allowance for loans sold or
transferred to loans held for sale --- --- (6,825) --- (1,659) --- (8,484)
ALLL balance, end of period $ 241,051 $ 285,369 $ 34,979 $ 118,764 $ 61,658 $ 27,254 $ 769,075
AULC balance, beginning of period $ 39,658 $ 5,852 $ --- $ 2,134 $ 1 $ 811 $ 48,456
Provision for unfunded loan
commitments and letters of credit (5,790) (1,112) --- (778) 2 (127) (7,805)
AULC balance, end of period $ 33,868 $ 4,740 $ --- $ 1,356 $ 3 $ 684 $ 40,651
ACL balance, end of period $ 274,919 $ 290,109 $ 34,979 $ 120,120 $ 61,661 $ 27,938 $ 809,726
(dollar amounts in thousands)
Year Ended December 31, 2011:
ALLL balance, beginning of period $ 340,614 $ 588,251 $ 49,488 $ 150,630 $ 93,289 $ 26,736 $ 1,249,008
Loan charge-offs (134,385) (182,759) (33,593) (109,427) (65,069) (32,520) (557,753)
Recoveries of loans previously
charged-off 44,686 34,658 18,526 7,630 8,388 6,776 120,664
Provision for loan and lease losses 24,452 (51,444) 17,042 95,040 52,226 30,414 167,730
Allowance for loans sold or
transferred to loans held for sale --- --- (13,181) --- (1,640) --- (14,821)
ALLL balance, end of period $ 275,367 $ 388,706 $ 38,282 $ 143,873 $ 87,194 $ 31,406 $ 964,828
AULC balance, beginning of period $ 32,726 $ 6,158 $ --- $ 2,348 $ 1 $ 894 $ 42,127
Provision for unfunded loan
commitments and letters-of-credit 6,932 (306) --- (214) --- (83) 6,329
AULC balance, end of period 39,658 5,852 --- 2,134 1 811 48,456
ACL balance, end of period $ 315,025 $ 394,558 $ 38,282 $ 146,007 $ 87,195 $ 32,217 $ 1,013,284
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Credit Quality Indicators
To facilitate the monitoring of credit quality for C&I and CRE loans, and for purposes of determining an appropriate ACL level
for these loans, Huntington utilizes the following categories of credit grades:
Pass - Higher quality loans that do not fit any of the other categories described below.
OLEM - The credit risk may be relatively minor yet represent a risk given certain specific circumstances. If the
potential weaknesses are not monitored or mitigated, the loan may weaken or the collateral may be
inadequate to protect Huntington’s position in the future. For these reasons, Huntington considers the loans
to be potential problem loans.
Substandard - Inadequately protected loans by the borrower’s ability to repay, equity, and/or the collateral pledged to
secure the loan. These loans have identified weaknesses that could hinder normal repayment or collection
of the debt. It is likely Huntington will sustain some loss if any identified weaknesses are not mitigated.
Doubtful - Loans that have all of the weaknesses inherent in those loans classified as Substandard, with the added
elements of the full collection of the loan is improbable and that the possibility of loss is high.
The categories above, which are derived from standard regulatory rating definitions, are assigned upon initial approval of the loan
or lease and subsequently updated as appropriate.