Huntington National Bank 2014 Annual Report Download - page 57

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The $14.4 million, or 4%, decline in NPAs compared with December 31, 2013, primarily reflected:
x $24.9 million, or 34%, decline in CRE NALs, reflecting both NCO activity and problem credit resolutions, including
borrower payments and payoffs partially resulting from successful workout strategies implemented by our SAD group.
x $23.0 million, or 19%, decline in residential mortgage NALs, reflecting resolution of foreclosure processes and improved
delinquency trends.
Partially offset by:
x $15.4 million, or 27%, increase in C&I NALs, primarily due to two credit relationships.
x $12.4 million or 19% increase in home equity NALs primarily due to increasing TDR NALs.
x $7.4 million, or 27%, increase in net OREO properties primarily related to consumer OREO, reflecting the impact from the
acquisition of Camco Financial.
As discussed previously, residential mortgages are placed on nonaccrual status at 150-days past due, with the exception of
residential mortgages guaranteed by government organizations which continue to accrue interest. First-lien home equity loans are
placed on nonaccrual status at 150-days past due. Junior-lien home equity loans are placed on nonaccrual status at the earlier of 120-
days past due or when the related first-lien loan has been identified as nonaccrual.
The following table reflects period-end accruing loans and leases 90 days or more past due for each of the last five years:
Table 14 - Accruing Past Due Loans and Leases
At December 31,
(dollar amounts in thousands) 2014 2013 2012 2011 2010
Accruing loans and leases past due 90 days or more
Commercial and industrial(1) $ 4,937 $ 14,562 $ 26,648
$ --- $ ---
Commercial real estate(1) 18,793 39,142 56,660
--- ---
Automobile 5,703 5,055 4,418
6,265 7,721
Residential mortgage (excluding loans guaranteed
by the U.S. government)(1) 33,040 2,469 2,718
45,198 53,983
Home equity 12,159 13,983 18,200
20,198 23,497
Other loans and leases 837 998 1,672 1,988 2,456
Total, excl. loans guaranteed by the U.S. government 75,469 76,209 110,316 73,649 87,657
Add: loans guaranteed by the U.S. government 55,012 87,985 90,816 96,703 98,288
Total accruing loans and leases past due 90 days or more,
including loans guaranteed by the U.S. government $ 130,481 $ 164,194 $ 201,132 $ 170,352 $ 185,945
Ratios:
Excluding loans guaranteed by the U.S. government,
as a percent of total loans and leases 0.16 % 0.18 % 0.27 % 0.19 % 0.23 %
Guaranteed by the U.S. government, as a percent of
total loans and leases 0.12 0.20 0.22 0.25 0.26
Including loans guaranteed by the U.S. government,
as a percent of total loans and leases 0.27 0.38 0.49 0.44 0.49
(
1
)
Amounts represent accruing purchased impaired loans related to the FDIC-assisted Fidelity Bank and Camco Financial acquisition. Under the
applicable accounting guidance (ASC 310-30), the loans were recorded at fair value upon acquisition and remain in accruing status.
TDR Loans
(This section should be read in conjunction with Note 3 of the Notes to Consolidated Financial Statements.)
TDRs are modified loans where a concession was provided to a borrower experiencing financial difficulties. TDRs can be
classified as either accrual or nonaccrual loans. Nonaccrual TDRs are included in NALs whereas accruing TDRs are excluded from
NALs, as it is probable that all contractual principal and interest due under the restructured terms will be collected. TDRs primarily
reflect our loss mitigation efforts to proactively work with borrowers in financial difficulty.