Huntington National Bank 2014 Annual Report Download - page 62

56
NCOs
Any loan in any portfolio may be charged-off prior to the policies described below if a loss confirming event has occurred. Loss
confirming events include, but are not limited to, bankruptcy (unsecured), continued delinquency, foreclosure, or receipt of an asset
valuation indicating a collateral deficiency and that asset is the sole source of repayment. Additionally, discharged, collateral
dependent non-reaffirmed debt in Chapter 7 bankruptcy filings will result in a charge-off to estimated collateral value, less anticipated
selling costs at the time of discharge.
C&I and CRE loans are either charged-off or written down to net realizable value at 90-days past due. Automobile loans and
other consumer loans are charged-off at 120-days past due. First-lien and junior-lien home equity loans are charged-off to the
estimated fair value of the collateral, less anticipated selling costs, at 150-days past due and 120-days past due, respectively.
Residential mortgages are charged-off to the estimated fair value of the collateral, less anticipated selling costs, at 150-days past due.
The following table reflects NCO detail for each of the last five years:
Table 19 - Net Loan and Lease Charge-offs
Year Ended December 31,
(dollar amounts in thousands) 2014 2013 2012 2011 2010
N
et charge-offs by loan and lease type
Commercial:
Commercial and industrial $ 32,123 $ 16,390 $ 64,248 $ 89,699 $ 254,932
Commercial real estate:
Construction 1,171 6,358 8,041 31,524 109,008
Commercial (10,538) 18,496 70,388 116,577 166,554
Total commercial real estate (9,367) 24,854 78,429 148,101 275,562
Total commercial 22,756 41,244 142,677 237,800 530,494
Consumer:
Automobile 17,568 10,537 9,442 15,067 26,572
Home equity 36,947 82,263 116,379 101,797 139,373
Residential mortgage 19,752 27,162 47,923 56,681 152,895
Other consumer 27,604 27,460 26,041 25,744 25,140
Total consumer 101,871 147,422 199,785 199,289 343,980
Total net charge-offs $ 124,627 $ 188,666 $ 342,462 $ 437,089 $ 874,474
N
et charge-offs ratio: (1)
Commercial:
Commercial and industrial 0.18 % 0.10 % 0.40 % 0.66 % 2.05 %
Commercial real estate:
Construction 0.16 1.10 1.38 5.33 9.95
Commercial (0.25) 0.42 1.35 2.08 2.72
Commercial real estate (0.19) 0.49 1.36 2.39 3.81
Total commercial 0.10 0.19 0.66 1.20 2.70
Consumer:
Automobile 0.23 0.19 0.21 0.26 0.54
Home equity 0.44 0.99 1.40 1.28 1.84
Residential mortgage 0.35 0.52 0.92 1.20 3.42
Other consumer 6.99 6.30 5.72 4.85 3.80
Total consumer 0.46 0.75 1.08 1.05 1.95
N
et charge-offs as a % of average loans 0.27 % 0.45 % 0.85 % 1.12 % 2.35 %