Huntington National Bank 2015 Annual Report Download - page 126

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which the adjustment amounts are determined. The acquirer is required to record, in the same period’s financial statements, the effect
on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional
amounts, calculated as if the accounting had been completed at the acquisition date. The amendments require an entity to present
separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by
line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been
recognized as of the acquisition date. The Update is effective for fiscal years beginning after December 15, 2015, including interim
periods within those fiscal years. The amendments in this Update should be applied prospectively to adjustments to provisional
amounts that occur after the effective date of this Update with earlier application permitted. Management will continue to monitor the
applicability of this amendment to Huntington’s Consolidated Financial Statements.
ASU 2016-01 — Recognition and Measurement of Financial Assets and Financial Liabilities. The amendments in this Update
make targeted improvements to GAAP including, but not limited to, requiring an entity to measure its equity investments (i.e.,
investment that are not accounted for using equity method of accounting or are consolidated) with changes in the fair value recognized
in the income statement, requiring an entity to present separately in OCI the portion of the total change in the fair value of a liability
resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in
accordance with the fair value option for financial instruments (i.e., FVO liability), requiring public business entities to use the exit
price notion when measuring the fair value of financial instruments for disclosure purposes, and eliminating some of the disclosures
required by the existing GAAP while requiring entities to present and disclose some additional information. The new guidance is
effective for the fiscal period beginning after December 15, 2017, including interim periods within those fiscal years. An entity may,
however, choose to adopt the requirement to present separately the credit mark on FVO liability earlier at the beginning of any fiscal
year if the financial statements for the fiscal year or interim periods have not been issued. An entity should apply the amendments by
means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendment is not
expected to have a material impact on Huntington's Consolidated Financial Statements.
3. LOANS AND LEASES AND ALLOWANCE FOR CREDIT LOSSES
Except for loans which are accounted for at fair value, loans are carried at the principal amount outstanding, net of unamortized
premiums and discounts and deferred loan fees and costs, which resulted in a net premium of $262 million and $230 million, at
December 31, 2015 and 2014, respectively.
Loan and Lease Portfolio Composition
The table below summarizes the Company’s primary portfolios. For ACL purposes, these portfolios are further disaggregated
into classes which are also summarized in the table below.
Portfolio Class
Commercial and industrial Owner occupied
Purchased credit-impaired
Other commercial and industrial
Commercial real estate Retail properties
Multi family
Office
Industrial and warehouse
Purchased credit-impaired
Other commercial real estate
Automobile NA (1)
Home equity Secured by first-lien
Secured by junior-lien
Residential mortgage Residential mortgage
Purchased credit-impaired
Other consumer Other consumer
Purchased credit-impaired
(1) Not applicable. The automobile loan portfolio is not further segregated into classes.