Huntington National Bank 2014 Annual Report Download - page 130

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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.
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, which we update quarterly. A credit bureau score is a credit score developed by Fair Isaac
Corporation based on data provided by the credit bureaus. The 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 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 following table presents each loan and lease class by credit quality indicator for the years ended December 31, 2014 and
2013:
December 31, 2014
Credit Risk Profile by UCS classification
(dollar amounts in thousands) Pass OLEM Substandard Doubtful Total
Commercial and industrial:
Owner occupied $ 3,959,046 $ 117,637 $ 175,767 $ 2,425 $ 4,254,875
Purchased impaired 3,915 741 14,901 3,671 23,228
Other commercial and industrial 13,925,334 386,666 440,036 3,007 14,755,043
Total commercial and industrial $ 17,888,295 $ 505,044 $ 630,704 $ 9,103 $ 19,033,146
Commercial real estate:
Retail properties $ 1,279,064 $ 10,204 $ 67,911 $ 567 $ 1,357,746
Multi family 1,044,521 12,608 32,322 965 1,090,416
Office 902,474 33,107 42,578 2,144 980,303
Industrial and warehouse 487,454 7,877 17,781 289 513,401
Purchased impaired 6,914 803 25,460 5,194 38,371
Other commercial real estate 1,166,293 9,635 40,019 1,219 1,217,166
Total commercial real estate $ 4,886,720 $ 74,234 $ 226,071 $ 10,378 $ 5,197,403
Credit Risk Profile by FICO score (1)
750+ 650-749 <650 Other (2) Total
Automobile $ 4,165,811 $ 3,249,141 $ 1,028,381 $ 246,569 $ 8,689,902
Home equity:
Secured by first-lien $ 3,255,088 $ 1,426,191 $ 283,152 $ 164,373 $ 5,128,804
Secured by junior-lien 1,832,663 1,095,332 348,825 85,291 3,362,111
Total home equity $ 5,087,751 $ 2,521,523 $ 631,977 $ 249,664 $ 8,490,915
Residential mortgage:
Residential mortgage $ 3,285,310 $ 1,785,137 $ 666,562 $ 91,688 $ 5,828,697
Purchased impaired 594 1,135 183 --- 1,912
Total residential mortgage $ 3,285,904 $ 1,786,272 $ 666,745 $ 91,688 $ 5,830,609
Other consumer:
Other consumer $ 195,128 $ 187,781 $ 30,582 $ 209 $ 413,700
Purchased impaired --- 51 --- --- 51
Total other consumer loans $ 195,128 $ 187,832 $ 30,582 $ 209 $ 413,751