Huntington National Bank 2014 Annual Report Download - page 129

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(dollar amounts in thousands)
Year ended December 31, 2013:
ALLL balance, beginning of period $ 241,051 $ 285,369 $ 34,979 $ 118,764 $ 61,658 $ 27,254 $ 769,075
Loan charge-offs (45,904) (69,512) (23,912) (98,184) (34,236) (34,568) (306,316)
Recoveries of loans previously
charged-off 29,514 44,658 13,375 15,921 7,074 7,108 117,650
Provision for loan and lease losses 41,140 (97,958) 6,611 74,630 5,417 37,957 67,797
Allowance for loans sold or
transferred to loans held for sale --- --- --- --- (336) --- (336)
ALLL balance, end of period $ 265,801 $ 162,557 $ 31,053 $ 111,131 $ 39,577 $ 37,751 $ 647,870
AULC balance, beginning of period $ 33,868 $ 4,740 $ --- $ 1,356 $ 3 $ 684 $ 40,651
Provision for unfunded loan
commitments and letters of credit 15,728 5,151 --- 407 6 956 22,248
AULC balance, end of period $ 49,596 $ 9,891 $ --- $ 1,763 $ 9 $ 1,640 $ 62,899
ACL balance, end of period $ 315,397 $ 172,448 $ 31,053 $ 112,894 $ 39,586 $ 39,391 $ 710,769
(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
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.