Huntington National Bank 2014 Annual Report Download - page 58

52
The table below presents our accruing and nonaccruing TDRs at period-end for each of the past five years:
Table 15 - Accruing and Nonaccruing Troubled Debt Restructured Loans
December 31,
(
dollar amounts in thousands
)
2014 2013 2012 2011 2010
Troubled debt restructured loans - accruing:
Commercial and industrial $116,331 $83,857 $76,586 $54,007 $70,136
Commercial real estate 177,156 204,668 208,901 249,968 152,496
Automobile 26,060 30,781 35,784 36,573 29,764
Home equity 252,084 188,266 110,581 52,224 37,257
Residential mortgage 265,084 305,059 290,011 309,678 328,411
Other consumer 4,018 1,041 2,544 6,108 9,565
Total troubled debt restructured loans -
accruing 840,733 813,672 724,407 708,558 627,629
Troubled debt restructured loans - nonaccruing:
Commercial and industrial 20,580 7,291 19,268 48,553 15,275
Commercial real estate 24,964 23,981 32,548 21,968 18,187
Automobile 4,552 6,303 7,823 --- ---
Home equity 27,224 20,715 6,951 369 ---
Residential mortgage 69,305 82,879 84,515 26,089 5,789
Other consumer 70 --- 113 113 ---
Total troubled debt restructured loans -
nonaccruing 146,695 141,169 151,218 97,092 39,251
Total troubled debt restructured loans $987,428 $954,841 $875,625 $805,650 $666,880
Our strategy is to structure TDRs in a manner that avoids new concessions subsequent to the initial TDR terms. However, there
are times when subsequent modifications are required, such as when the modified loan matures. Often the loans are performing in
accordance with the TDR terms, and a new note is originated with similar modified terms. These loans are subjected to the normal
underwriting standards and processes for other similar credit extensions, both new and existing. If the loan is not performing in
accordance with the existing TDR terms, typically an individualized approach to repayment is established. In accordance with ASC
310-20-35, the refinanced note is evaluated to determine if it is considered a new loan or a continuation of the prior loan. A new loan
is considered for removal of the TDR designation. A continuation of the prior note requires the continuation of the TDR designation,
and because the refinanced note constitutes a new or amended debt instrument, it is included in our TDR activity table (below) as a
new TDR and a restructured TDR removal during the period.
The types of concessions granted are consistent with those granted on new TDRs and include interest rate reductions,
amortization or maturity date changes beyond what the collateral supports, and principal forgiveness based on the borrower’s specific
needs at a point in time. Our policy does not limit the number of times a loan may be modified. A loan may be modified multiple
times if it is considered to be in the best interest of both the borrower and Huntington.
Commercial loans are not automatically considered to be accruing TDRs upon the granting of a new concession. If the loan is in
accruing status and no loss is expected based on the modified terms, the modified TDR remains in accruing status. For loans that are
on nonaccrual status before the modification, collection of both principal and interest must not be in doubt, and the borrower must be
able to exhibit sufficient cash flows for a six-month period of time to service the debt in order to return to accruing status. This six-
month period could extend before or after the restructure date.
TDRs in the home equity and residential mortgage portfolio may continue to increase in the near term as we continue to
appropriately manage the portfolio and work with our borrowers. Any granted change in terms or conditions that are not readily
available in the market for that borrower, requires the designation as a TDR. There are no provisions for the removal of the TDR
designation based on payment activity for consumer loans.