Huntington National Bank 2013 Annual Report Download - page 126

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Commercial loans categorized as OLEM, Substandard, or Doubtful are considered Criticized loans. Commercial loans
categorized as Substandard or Doubtful are also considered Classified loans.
For all classes within all consumer loan portfolios, each loan is assigned a specific PD factor that is partially based on the
borrower’s most recent credit bureau score (FICO), which we update quarterly. A FICO credit bureau score is a credit score
developed by Fair Isaac Corporation based on data provided by the credit bureaus. The FICO credit bureau score is widely accepted
as the standard measure of consumer credit risk used by lenders, regulators, rating agencies, and consumers. The higher the FICO
credit bureau score, the higher likelihood of repayment and therefore, an indicator of higher credit quality.
Huntington assesses the risk in the loan portfolio by utilizing numerous risk characteristics. The classifications described above,
and also presented in the table below, represent one of those characteristics that are closely monitored in the overall credit risk
management processes. The table below also shows an increase in FICO scores less than 650 for the automobile portfolio. This
increase is proportional to growth in the portfolio and does not reflect a deterioration in asset quality for the portfolio, as other risk
characteristics mitigate any increased level of risk associated with the FICO score distribution.
The following table presents each loan and lease class by credit quality indicator for the years ended December 31, 2013 and
2012:
December 31, 2013
Credit Risk Profile by UCS classification
(dollar amounts in thousands) Pass OLEM Substandard Doubtful Total
Commercial and industrial:
Owner occupied $ 4,052,579 $ 130,645 $ 155,994 $ 8,654 $ 4,347,872
Purchased impaired 5,015 661 27,693 2,157 35,526
Other commercial and industrial 12,630,512 211,860 364,343 4,163 13,210,878
Total commercial and industrial $ 16,688,106 $ 343,166 $ 548,030 $ 14,974 $ 17,594,276
Commercial real estate:
Retail properties $ 1,153,747 $ 16,003 $ 93,819 $ --- $ 1,263,569
Multi family 972,526 16,540 36,411 114 1,025,591
Office 847,411 4,866 87,722 2,294 942,293
Industrial and warehouse 431,057 14,138 27,698 --- 472,893
Purchased impaired 13,127 3,586 62,577 2,783 82,073
Other commercial real estate 977,987 16,270 68,653 765 1,063,675
Total commercial real estate $ 4,395,855 $ 71,403 $ 376,880 $ 5,956 $ 4,850,094
Credit Risk Profile by FICO score (1)
750+ 650-749 <650 Other (2) Total
Automobile $ 2,987,323 $ 2,517,756 $ 945,604 $ 188,030 $ 6,638,713
Home equity:
Secured by first-lien $ 3,018,784 $ 1,412,445 $ 299,681 $ 111,234 $ 4,842,144
Secured by junior-lien 1,811,102 1,213,024 413,695 56,353 3,494,174
Total home equity $ 4,829,886 $ 2,625,469 $ 713,376 $ 167,587 $ 8,336,318
Residential mortgage:
Residential mortgage $ 2,837,590 $ 1,710,183 $ 699,541 $ 71,276 $ 5,318,590
Purchased impaired 588 989 921 --- 2,498
Total residential mortgage $ 2,838,178 $ 1,711,172 $ 700,462 $ 71,276 $ 5,321,088
Other consumer
Other consumer $ 161,858 $ 157,675 $ 45,370 $ 14,979 $ 379,882
Purchased impaired --- 60 69 --- 129
Total other consumer loans $ 161,858 $ 157,735 $ 45,439 $ 14,979 $ 380,011