Annual report pursuant to Section 13 and 15(d)

Loans and Leases and Allowance for Credit Losses

v2.4.1.9
Loans and Leases and Allowance for Credit Losses
 12 Months Ended
Dec. 31, 2014
Loans / Leases and Allowance for Credit Losses [Abstract]  
Loans / Leases AND ALLOWANCE FOR CREDIT LOSSES

3. Loans and Leases AND ALLOWANCE FOR CREDIT LOSSES

Loans and leases for which Huntington has the intent and ability to hold for the foreseeable future, or until maturity or payoff, are classified in the Consolidated Balance Sheets as loans and leases. Except for loans which are accounted for at fair value, loans and leases are carried at the principal amount outstanding, net of unamortized deferred loan origination fees and costs and net of unearned income. At December 31, 2014 and 2013, the aggregate amount of these net unamortized deferred loan origination fees and net unearned income was $178.7 million and $192.9 million, 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.

Direct Financing Leases

Huntington’s loan and lease portfolio includes lease financing receivables consisting of direct financing leases on equipment, which are included in C&I loans. Net investments in lease financing receivables by category at December 31, 2014 and 2013 were as follows:

At December 31,
(dollar amounts in thousands) 2014 2013
Commercial and industrial:
Lease payments receivable $ 1,051,744 $ 1,426,928
Estimated residual value of leased assets 483,407 409,184
Gross investment in commercial lease financing receivables 1,535,151 1,836,112
Net deferred origination costs 2,557 3,105
Unearned income (131,027) (165,052)
Total net investment in commercial lease financing receivables $ 1,406,681 $ 1,674,165

The future lease rental payments due from customers on direct financing leases at December 31, 2014, totaled $1.1 billion and were as follows: $0.3 billion in 2015, $0.2 billion in 2016, $0.2 billion in 2017, $0.1 billion in 2018, $0.1 billion in 2019, and $0.2 thereafter.

Fidelity Bank acquisition

On March 30, 2012, Huntington acquired the loans of Fidelity Bank located in Dearborn, Michigan from the FDIC. Under the agreement, loans with a fair value of $523.9 million were acquired by Huntington.

Camco Financial acquisition

On March 1, 2014, Huntington completed its acquisition of Camco Financial in a stock and cash transaction valued at $109.5 million. Loans with a fair value of $559.4 million were acquired by Huntington.

Purchased Credit-Impaired Loans

Purchased loans with evidence of deterioration in credit quality since origination for which it is probable at acquisition that we will be unable to collect all contractually required payments are considered to be credit impaired. Purchased credit-impaired loans are initially recorded at fair value, which is estimated by discounting the cash flows expected to be collected at the acquisition date. Because the estimate of expected cash flows reflects an estimate of future credit losses expected to be incurred over the life of the loans, an allowance for credit losses is not recorded at the acquisition date. The excess of cash flows expected at acquisition over the estimated fair value, referred to as the accretable yield, is recognized in interest income over the remaining life of the loan, or pool of loans, on a level-yield basis. The difference between the contractually required payments at acquisition and the cash flows expected to be collected at acquisition is referred to as the nonaccretable difference. A subsequent decrease in the estimate of cash flows expected to be received on purchased credit-impaired loans generally results in the recognition of an allowance for credit losses. Subsequent increases in cash flows result in reversal of any nonaccretable difference (or allowance for loan and lease losses to the extent any has been recorded) with a positive impact on interest income subsequently recognized. The measurement of cash flows involves assumptions and judgments for interest rates, prepayments, default rates, loss severity, and collateral values. All of these factors are inherently subjective and significant changes in the cash flow estimates over the life of the loan can result.

The following table reflects the contractually required payments receivable, cash flows expected to be collected, and fair value of the credit impaired Camco Financial loans at acquisition date:

March 1,
(dollar amounts in thousands) 2014
Contractually required payments including interest $ 14,363
Less: nonaccretable difference (11,234)
Cash flows expected to be collected 3,129
Less: accretable yield (143)
Fair value of credit impaired loans acquired $ 2,986

The following table presents a rollforward of the accretable yield by acquisition for the year ended December 31, 2014 and 2013:

(dollar amounts in thousands) 2014 2013
Fidelity Bank
Balance at January 1, $ 27,995 $ 23,251
Accretion (13,485) (15,931)
Reclassification from nonaccretable difference 4,878 20,675
Balance at December 31, $ 19,388 $ 27,995
Camco Financial
Impact of acquisition on March 1, 2014 143 ---
Accretion (5,597) ---
Reclassification from nonaccretable difference 6,278 ---
Balance at December 31, $ 824 $ ---

The allowance for loan losses recorded on the purchased credit-impaired loan portfolio at December 31, 2014 and 2013 was $4.1 million and $2.4 million, respectively. The following table reflects the ending and unpaid balances of all contractually required payments and carrying amounts of the acquired loans by acquisition at December 31, 2014 and December 31, 2013:

December 31, 2014 December 31, 2013
(in thousands) Ending Balance Unpaid Balance Ending Balance Unpaid Balance
Fidelity Bank
Commercial and industrial $ 22,405 $ 33,622 $ 35,526 $ 50,798
Commercial real estate 36,663 87,250 82,073 154,869
Residential mortgage 1,912 3,096 2,498 3,681
Other consumer 51 123 129 219
Total $ 61,031 $ 124,091 $ 120,226 $ 209,567
Camco Financial
Commercial and industrial $ 823 $ 1,685 $ --- $ ---
Commercial real estate 1,708 3,826 --- ---
Total $ 2,531 $ 5,511 $ --- $ ---

Loan Purchases and Sales

The following table summarizes significant portfolio loan purchase and sale activity for the years ended December 31, 2014, and 2013.

Commercial Commercial Home Residential Other
and Industrial Real Estate Automobile Equity Mortgage Consumer Total
(dollar amounts in thousands)
Portfolio loans purchased during the:
Year ended December 31, 2014 $ 326,557 $ --- $ --- $ --- $ 18,482 $ --- $ 345,039
Year ended December 31, 2013 109,723 --- --- --- --- --- 109,723
Portfolio loans sold or transferred to loans held for sale during the:
Year ended December 31, 2014 352,062 8,447 --- --- --- 7,592 368,101
Year ended December 31, 2013 225,930 4,767 --- --- 205,334 --- 436,031

NALs and Past Due Loans

The following table presents NALs by loan class for the years ended December 31, 2014 and 2013:

December 31,
(dollar amounts in thousands) 2014 2013
Commercial and industrial:
Owner occupied $ 41,285 $ 38,321
Other commercial and industrial 30,689 18,294
Total commercial and industrial $ 71,974 $ 56,615
Commercial real estate:
Retail properties $ 21,385 $ 27,328
Multi family 9,743 9,289
Office 7,707 18,995
Industrial and warehouse 3,928 6,310
Other commercial real estate 5,760 11,495
Total commercial real estate $ 48,523 $ 73,417
Automobile $ 4,623 $ 6,303
Home equity:
Secured by first-lien $ 46,938 $ 36,288
Secured by junior-lien 31,622 29,901
Total home equity $ 78,560 $ 66,189
Residential mortgage $ 96,564 $ 119,532
Other consumer $ --- $ ---
Total nonaccrual loans $ 300,244 $ 322,056

The amount of interest that would have been recorded under the original terms for total NAL loans was $20.6 million, $23.4 million, and $40.4 million for 2014, 2013, and 2012, respectively. The total amount of interest recorded to interest income for these loans was $8.4 million, $5.0 million, and $4.8 million in 2014, 2013, and 2012, respectively.

The following table presents an aging analysis of loans and leases, including past due loans and leases, by loan class for the years ended December 31, 2014 and 2013 (1):

December 31, 2014
90 or more
(dollar amounts in thousands) Past Due Total Loans days past due
30-59 days 60-89 days 90 or more days Total Current and Leases and accruing
Commercial and industrial:
Owner occupied $ 5,232 $ 2,981 $ 18,222 $ 26,435 $ 4,228,440 $ 4,254,875 $ ---
Purchased credit-impaired 846 --- 4,937 5,783 17,445 23,228 4,937 (2)
Other commercial and industrial 15,330 1,536 9,101 25,967 14,729,076 14,755,043 ---
Total commercial and industrial $ 21,408 $ 4,517 $ 32,260 $ 58,185 $ 18,974,961 $ 19,033,146 $ 4,937
Commercial real estate:
Retail properties $ 7,866 $ --- $ 4,021 $ 11,887 $ 1,345,859 $ 1,357,746 $ ---
Multi family 1,517 312 3,337 5,166 1,085,250 1,090,416 ---
Office 464 1,167 4,415 6,046 974,257 980,303 ---
Industrial and warehouse 688 --- 2,649 3,337 510,064 513,401 ---
Purchased credit-impaired 89 289 18,793 19,171 19,200 38,371 18,793 (2)
Other commercial real estate 847 1,281 3,966 6,094 1,211,072 1,217,166 ---
Total commercial real estate $ 11,471 $ 3,049 $ 37,181 $ 51,701 $ 5,145,702 $ 5,197,403 $ 18,793
Automobile $ 56,272 $ 10,427 $ 5,963 $ 72,662 $ 8,617,240 $ 8,689,902 $ 5,703
Home equity:
Secured by first-lien $ 15,036 $ 8,085 $ 33,014 $ 56,135 $ 5,072,669 $ 5,128,804 $ 4,471
Secured by junior-lien 22,473 12,297 33,406 68,176 3,293,935 3,362,111 7,688
Total home equity $ 37,509 $ 20,382 $ 66,420 $ 124,311 $ 8,366,604 $ 8,490,915 $ 12,159
Residential mortgage:
Residential mortgage $ 102,702 $ 42,009 $ 139,379 $ 284,090 $ 5,544,607 $ 5,828,697 $ 88,052 (3)
Purchased credit-impaired --- --- --- --- 1,912 1,912 --- (2)
Total residential mortgage $ 102,702 $ 42,009 $ 139,379 $ 284,090 $ 5,546,519 $ 5,830,609 $ 88,052
Other consumer:
Other consumer $ 5,491 $ 1,086 $ 837 $ 7,414 $ 406,286 $ 413,700 $ 837
Purchased credit-impaired --- --- --- --- 51 51 --- (2)
Total other consumer $ 5,491 $ 1,086 $ 837 $ 7,414 $ 406,337 $ 413,751 $ 837
Total loans and leases $ 234,853 $ 81,470 $ 282,040 $ 598,363 $ 47,057,363 $ 47,655,726 $ 130,481
December 31, 2013
90 or more
(dollar amounts in thousands) Past Due Total Loans days past due
30-59 days 60-89 days 90 or more days Total Current and Leases and accruing
Commercial and industrial:
Owner occupied $ 5,935 $ 1,879 $ 25,658 $ 33,472 $ 4,314,400 $ 4,347,872 $ ---
Purchased credit-impaired 241 433 14,562 15,236 20,290 35,526 14,562 (2)
Other commercial and industrial 10,342 3,075 11,210 24,627 13,186,251 13,210,878 ---
Total commercial and industrial $ 16,518 $ 5,387 $ 51,430 $ 73,335 $ 17,520,941 $ 17,594,276 $ 14,562
Commercial real estate:
Retail properties $ 19,372 $ 1,228 $ 5,252 $ 25,852 $ 1,237,717 $ 1,263,569 $ ---
Multi family 2,425 943 6,726 10,094 1,015,497 1,025,591 ---
Office 1,635 545 12,700 14,880 927,413 942,293 ---
Industrial and warehouse 465 3,714 4,395 8,574 464,319 472,893 ---
Purchased credit-impaired 1,311 --- 39,142 40,453 41,620 82,073 39,142 (2)
Other commercial real estate 5,922 1,134 7,192 14,248 1,049,427 1,063,675 ---
Total commercial real estate $ 31,130 $ 7,564 $ 75,407 $ 114,101 $ 4,735,993 $ 4,850,094 $ 39,142
Automobile $ 45,174 $ 8,863 $ 5,140 $ 59,177 $ 6,579,536 $ 6,638,713 $ 5,055
Home equity:
Secured by first-lien $ 20,551 $ 8,746 $ 28,472 $ 57,769 $ 4,784,375 $ 4,842,144 $ 6,338
Secured by junior-lien 28,965 13,071 31,392 73,428 3,420,746 3,494,174 7,645
Total home equity 49,516 $ 21,817 $ 59,864 $ 131,197 $ 8,205,121 $ 8,336,318 $ 13,983
Residential mortgage:
Residential mortgage 101,584 $ 41,784 $ 158,956 $ 302,324 $ 5,016,266 $ 5,318,590 $ 90,115 (4)
Purchased credit-impaired 194 --- 339 533 1,965 2,498 339 (2)
Total residential mortgage $ 101,778 $ 41,784 $ 159,295 $ 302,857 $ 5,018,231 $ 5,321,088 $ 90,454
Other consumer:
Other consumer 6,465 $ 1,276 $ 998 $ 8,739 $ 371,143 $ 379,882 $ 998
Purchased credit-impaired 69 --- --- 69 60 129 --- (2)
Total other consumer $ 6,534 $ 1,276 $ 998 $ 8,808 $ 371,203 $ 380,011 $ 998
Total loans and leases $ 250,650 $ 86,691 $ 352,134 $ 689,475 $ 42,431,025 $ 43,120,500 $ 164,194
(1) NALs are included in this aging analysis based on the loan's past due status.
(2) All amounts represent accruing purchased credit-impaired loans related to the Camco Financial and FDIC-assisted Fidelity Bank acquisition. Under the applicable accounting guidance (ASC-310-30), the loans were recorded at fair value upon acquisition and remain in accruing status.
(3) Includes $55,012 thousand guaranteed by the U.S. government.
(4) Includes $87,985 thousand guaranteed by the U.S. government.

Allowance for Credit Losses

The ACL is increased through a provision for credit losses that is charged to earnings, based on Management’s quarterly evaluation of the factors previously mentioned, and is reduced by charge-offs, net of recoveries, and the ACL associated with securitized or sold loans. There were no material changes in assumptions or estimation techniques compared with prior periods that impacted the determination of the current period’s ALLL and AULC.

The following table presents ALLL and AULC activity by portfolio segment for the years ended December 31, 2014, 2013, and 2012:

Commercial Commercial Home Residential Other
and Industrial Real Estate Automobile Equity Mortgage Consumer Total
(dollar amounts in thousands)
Year ended December 31, 2014:
ALLL balance, beginning of period $ 265,801 $ 162,557 $ 31,053 $ 111,131 $ 39,577 $ 37,751 $ 647,870
Loan charge-offs (76,654) (24,704) (31,330) (54,473) (25,946) (33,494) (246,601)
Recoveries of loans previously charged-off 44,531 34,071 13,762 17,526 6,194 5,890 121,974
Provision for loan and lease losses 53,317 (69,085) 19,981 22,229 27,386 29,254 83,082
Allowance for loans sold or transferred to loans held for sale --- --- --- --- --- (1,129) (1,129)
ALLL balance, end of period $ 286,995 $ 102,839 $ 33,466 $ 96,413 $ 47,211 $ 38,272 $ 605,196
AULC balance, beginning of period $ 49,596 $ 9,891 $ --- $ 1,763 $ 9 $ 1,640 $ 62,899
Provision for unfunded loan commitments and letters of credit (608) (3,850) --- 161 (1) 2,205 (2,093)
AULC balance, end of period $ 48,988 $ 6,041 $ --- $ 1,924 $ 8 $ 3,845 $ 60,806
ACL balance, end of period $ 335,983 $ 108,880 $ 33,466 $ 98,337 $ 47,219 $ 42,117 $ 666,002

(dollar amounts in thousands)
Year ended December 31, 2013:
ALLL balance, beginning of period $ 241,051 $ 285,369 $ 34,979 $ 118,764 $ 61,658 $ 27,254 $ 769,075
Loan charge-offs (45,904) (69,512) (23,912) (98,184) (34,236) (34,568) (306,316)
Recoveries of loans previously charged-off 29,514 44,658 13,375 15,921 7,074 7,108 117,650
Provision for loan and lease losses 41,140 (97,958) 6,611 74,630 5,417 37,957 67,797
Allowance for loans sold or transferred to loans held for sale --- --- --- --- (336) --- (336)
ALLL balance, end of period $ 265,801 $ 162,557 $ 31,053 $ 111,131 $ 39,577 $ 37,751 $ 647,870
AULC balance, beginning of period $ 33,868 $ 4,740 $ --- $ 1,356 $ 3 $ 684 $ 40,651
Provision for unfunded loan commitments and letters of credit 15,728 5,151 --- 407 6 956 22,248
AULC balance, end of period $ 49,596 $ 9,891 $ --- $ 1,763 $ 9 $ 1,640 $ 62,899
ACL balance, end of period $ 315,397 $ 172,448 $ 31,053 $ 112,894 $ 39,586 $ 39,391 $ 710,769

(dollar amounts in thousands)
Year Ended December 31, 2012:
ALLL balance, beginning of period $ 275,367 $ 388,706 $ 38,282 $ 143,873 $ 87,194 $ 31,406 $ 964,828
Loan charge-offs (101,475) (118,051) (26,070) (124,286) (52,228) (33,090) (455,200)
Recoveries of loans previously charged-off 37,227 39,622 16,628 7,907 4,305 7,049 112,738
Provision for loan and lease losses 29,932 (24,908) 12,964 91,270 24,046 21,889 155,193
Allowance for loans sold or transferred to loans held for sale --- --- (6,825) --- (1,659) --- (8,484)
ALLL balance, end of period $ 241,051 $ 285,369 $ 34,979 $ 118,764 $ 61,658 $ 27,254 $ 769,075
AULC balance, beginning of period $ 39,658 $ 5,852 $ --- $ 2,134 $ 1 $ 811 $ 48,456
Provision for unfunded loan commitments and letters-of-credit (5,790) (1,112) --- (778) 2 (127) (7,805)
AULC balance, end of period 33,868 4,740 --- 1,356 3 684 40,651
ACL balance, end of period $ 274,919 $ 290,109 $ 34,979 $ 120,120 $ 61,661 $ 27,938 $ 809,726

Credit Quality Indicators

To facilitate the monitoring of credit quality for C&I and CRE loans, and for purposes of determining an appropriate ACL level for these loans, Huntington utilizes the following categories of credit grades:

Pass - Higher quality loans that do not fit any of the other categories described below.

OLEM - The credit risk may be relatively minor yet represent a risk given certain specific circumstances. If the potential weaknesses are not monitored or mitigated, the loan may weaken or the collateral may be inadequate to protect Huntington’s position in the future. For these reasons, Huntington considers the loans to be potential problem loans.

Substandard - Inadequately protected loans by the borrower’s ability to repay, equity, and/or the collateral pledged to secure the loan. These loans have identified weaknesses that could hinder normal repayment or collection of the debt. It is likely Huntington will sustain some loss if any identified weaknesses are not mitigated.

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
December 31, 2013
Credit Risk Profile by UCS classification
(dollar amounts in thousands) Pass OLEM Substandard Doubtful Total
Commercial and industrial:
Owner occupied $ 4,052,579 $ 130,645 $ 155,994 $ 8,654 $ 4,347,872
Purchased impaired 5,015 661 27,693 2,157 35,526
Other commercial and industrial 12,630,512 211,860 364,343 4,163 13,210,878
Total commercial and industrial $ 16,688,106 $ 343,166 $ 548,030 $ 14,974 $ 17,594,276
Commercial real estate:
Retail properties $ 1,153,747 $ 16,003 $ 93,819 $ --- $ 1,263,569
Multi family 972,526 16,540 36,411 114 1,025,591
Office 847,411 4,866 87,722 2,294 942,293
Industrial and warehouse 431,057 14,138 27,698 --- 472,893
Purchased impaired 13,127 3,586 62,577 2,783 82,073
Other commercial real estate 977,987 16,270 68,653 765 1,063,675
Total commercial real estate $ 4,395,855 $ 71,403 $ 376,880 $ 5,956 $ 4,850,094
Credit Risk Profile by FICO score (1)
750+ 650-749 <650 Other (2) Total
Automobile $ 2,987,323 $ 2,517,756 $ 945,604 $ 188,030 $ 6,638,713
Home equity:
Secured by first-lien 3,018,784 1,412,445 299,681 111,234 4,842,144
Secured by junior-lien 1,811,102 1,213,024 413,695 56,353 3,494,174
Total home equity $ 4,829,886 $ 2,625,469 $ 713,376 $ 167,587 $ 8,336,318
Residential mortgage:
Residential mortgage 2,837,590 1,710,183 699,541 71,276 5,318,590
Purchased impaired 588 989 921 --- 2,498
Total residential mortgage 2,838,178 $ 1,711,172 $ 700,462 $ 71,276 $ 5,321,088
Other consumer:
Other consumer 161,858 157,675 45,370 14,979 379,882
Purchased impaired --- 60 69 --- 129
Total other consumer loans 161,858 $ 157,735 $ 45,439 $ 14,979 $ 380,011
(1) Reflects currently updated customer credit scores.
(2) Reflects deferred fees and costs, loans in process, loans to legal entities, etc.

Impaired Loans

For all classes within the C&I and CRE portfolios, all loans with an outstanding balance of $1.0 million or greater are considered for individual evaluation of impairment on a quarterly basis. Generally, consumer loans within any class are not individually evaluated on a regular basis for impairment. All TDRs, regardless of the outstanding balance amount, are also considered to be impaired. Loans acquired with evidence of deterioration of credit quality since origination for which it is probable at acquisition that all contractually required payments will not be collected are also considered to be impaired.

Once a loan has been identified for an assessment of impairment, the loan is considered impaired when, based on current information and events, it is probable that all amounts due according to the contractual terms of the loan agreement will not be collected. This determination requires significant judgment and use of estimates, and the eventual outcome may differ significantly from those estimates.

The following tables present the balance of the ALLL attributable to loans by portfolio segment individually and collectively evaluated for impairment and the related loan and lease balance for the years ended December 31, 2014, and 2013 (1):

Commercial Commercial Residential Other
(dollar amounts in thousands) and Industrial Real Estate Automobile Home Equity Mortgage Consumer Total
ALLL at December 31, 2014:
Portion of ALLL balance:
Attributable to purchased credit-impaired loans $ 3,846 $ --- $ --- $ --- $ 8 $ 245 $ 4,099
Attributable to loans individually evaluated for impairment 11,049 18,887 1,531 26,027 16,535 214 74,243
Attributable to loans collectively evaluated for impairment 272,100 83,952 31,935 70,386 30,668 37,813 526,854
Total ALLL balance $ 286,995 $ 102,839 $ 33,466 $ 96,413 $ 47,211 $ 38,272 $ 605,196
Loans and Leases at December 31, 2014:
Portion of loan and lease ending balance:
Attributable to purchased credit-impaired loans $ 23,228 $ 38,371 $ --- $ --- $ 1,912 $ 51 $ 63,562
Individually evaluated for impairment 216,993 217,262 30,612 310,446 369,577 4,088 1,148,978
Collectively evaluated for impairment 18,792,925 4,941,770 8,659,290 8,180,469 5,459,120 409,612 46,443,186
Total loans evaluated for impairment $ 19,033,146 $ 5,197,403 $ 8,689,902 $ 8,490,915 $ 5,830,609 $ 413,751 $ 47,655,726
Portion of ending balance of impaired loans:
With allowance assigned to the loan and lease balances $ 202,376 $ 144,162 $ 30,612 $ 310,446 $ 371,489 $ 4,139 $ 1,063,224
With no allowance assigned to the loan and lease balances 37,845 111,471 --- --- --- --- 149,316
Total $ 240,221 $ 255,633 $ 30,612 $ 310,446 $ 371,489 $ 4,139 $ 1,212,540
Average balance of impaired loans $ 174,316 $ 511,590 $ 34,637 $ 258,881 $ 384,026 $ 2,879 $ 1,366,329
ALLL on impaired loans 14,895 18,887 1,531 26,027 16,543 459 78,342

Commercial Commercial Residential Other
(dollar amounts in thousands) and Industrial Real Estate Automobile Home Equity Mortgage Consumer Total
ALLL at December 31, 2013:
Portion of ending balance:
Attributable to purchased credit-impaired loans $ 2,404 $ --- $ --- $ --- $ 36 $ --- $ 2,440
Attributable to loans individually evaluated for impairment 6,129 34,935 682 8,003 10,555 136 60,440
Attributable to loans collectively evaluated for impairment 257,268 127,622 30,371 103,128 28,986 37,615 584,990
Total ALLL balance $ 265,801 $ 162,557 $ 31,053 $ 111,131 $ 39,577 $ 37,751 $ 647,870
Loans and Leases at December 31, 2013:
Portion of ending balance of impaired loans:
Attributable to purchased credit-impaired loans $ 35,526 $ 82,073 $ --- $ --- $ 2,498 $ 129 $ 120,226
Individually evaluated for impairment 108,316 268,362 37,084 208,981 387,937 1,041 1,011,721
Collectively evaluated for impairment 17,450,434 4,499,659 6,601,629 8,127,337 4,930,653 378,841 41,988,553
Total loans evaluated for impairment $ 17,594,276 $ 4,850,094 $ 6,638,713 $ 8,336,318 $ 5,321,088 $ 380,011 $ 43,120,500
Portion of ending balance:
With allowance assigned to the loan and lease balances $ 126,626 $ 187,836 $ 37,084 $ 208,981 $ 390,435 $ 1,041 $ 952,003
With no allowance assigned to the loan and lease balances 17,216 162,599 --- --- --- 129 179,944
Total $ 143,842 $ 350,435 $ 37,084 $ 208,981 $ 390,435 $ 1,170 $ 1,131,947
Average balance of impaired loans $ 166,173 $ 365,053 $ 39,861 $ 162,170 $ 379,815 $ 2,248 $ 1,115,320
ALLL on impaired loans 8,533 34,935 682 8,003 10,591 136 62,880

The following tables present by class the ending, unpaid principal balance, and the related ALLL, along with the average balance and interest income recognized only for loans and leases individually evaluated for impairment and purchased credit-impaired loans for the years ended December 31, 2014 and 2013 (1), (2):

Year Ended
December 31, 2014 December 31, 2014
Unpaid Interest
Ending Principal Related Average Income
(dollar amounts in thousands) Balance Balance (5) Allowance Balance Recognized
With no related allowance recorded:
Commercial and industrial:
Owner occupied $ 13,536 $ 13,536 $ --- $ 5,740 $ 205
Purchased credit-impaired --- --- --- --- ---
Other commercial and industrial 24,309 26,858 --- 7,536 375
Total commercial and industrial $ 37,845 $ 40,394 $ --- $ 13,276 $ 580
Commercial real estate:
Retail properties $ 61,915 $ 91,627 $ --- $ 53,121 $ 2,454
Multi family --- --- --- --- ---
Office 1,130 3,574 --- 3,709 311
Industrial and warehouse 3,447 3,506 --- 5,012 248
Purchased credit-impaired 38,371 91,075 --- 59,424 11,519
Other commercial real estate 6,608 6,815 --- 6,598 286
Total commercial real estate $ 111,471 $ 196,597 $ --- $ 127,864 $ 14,818
Automobile $ --- $ --- $ --- $ --- $ ---
Home equity:
Secured by first-lien $ --- $ --- $ --- $ --- $ ---
Secured by junior-lien --- --- --- --- ---
Total home equity $ --- $ --- $ --- $ --- $ ---
Residential mortgage:
Residential mortgage $ --- $ --- $ --- $ --- $ ---
Purchased credit-impaired --- --- --- --- ---
Total residential mortgage $ --- $ --- $ --- $ --- $ ---
Other consumer:
Other consumer $ --- $ --- $ --- $ --- $ ---
Purchased credit-impaired --- --- --- --- ---
Total other consumer $ --- $ --- $ --- $ --- $ ---
With an allowance recorded:
Commercial and industrial: (3)
Owner occupied $ 44,869 $ 53,639 $ 4,220 $ 40,192 $ 1,557
Purchased credit-impaired 23,228 35,307 3,846 32,253 6,973
Other commercial and industrial 134,279 162,908 6,829 88,595 2,686
Total commercial and industrial $ 202,376 $ 251,854 $ 14,895 $ 161,040 $ 11,216
Commercial real estate: (4)
Retail properties $ 37,081 $ 38,397 $ 3,536 $ 63,393 $ 1,983
Multi family 17,277 23,725 2,339 16,897 659
Office 52,953 56,268 8,399 52,831 2,381
Industrial and warehouse 8,888 10,396 720 9,092 274
Purchased credit-impaired --- --- --- --- ---
Other commercial real estate 27,963 33,472 3,893 241,513 1,831
Total commercial real estate $ 144,162 $ 162,258 $ 18,887 $ 383,726 $ 7,128
Automobile $ 30,612 $ 32,483 $ 1,531 $ 34,637 $ 2,637
Home equity:
Secured by first-lien $ 145,566 $ 157,978 $ 8,296 $ 126,602 $ 5,496
Secured by junior-lien 164,880 208,118 17,731 132,279 6,379
Total home equity $ 310,446 $ 366,096 $ 26,027 $ 258,881 $ 11,875
Residential mortgage: (6)
Residential mortgage $ 369,577 $ 415,280 $ 16,535 $ 381,745 $ 11,594
Purchased credit-impaired 1,912 3,096 8 2,281 574
Total residential mortgage $ 371,489 $ 418,376 $ 16,543 $ 384,026 $ 12,168
Other consumer:
Other consumer $ 4,088 $ 4,209 $ 214 $ 2,796 $ 202
Purchased credit-impaired 51 123 245 83 15
Total other consumer $ 4,139 $ 4,332 $ 459 $ 2,879 $ 217

Year Ended
December 31, 2013 December 31, 2013
Unpaid Interest
Ending Principal Related Average Income
(dollar amounts in thousands) Balance Balance (5) Allowance Balance Recognized
With no related allowance recorded:
Commercial and Industrial:
Owner occupied $ 5,332 $ 5,373 $ --- $ 4,473 $ 172
Purchased credit-impaired --- --- --- --- ---
Other commercial and industrial 11,884 15,031 --- 13,117 640
Total commercial and industrial $ 17,216 $ 20,404 $ --- $ 17,590 $ 812
Commercial real estate:
Retail properties $ 55,773 $ 64,780 $ --- $ 46,764 $ 2,450
Multi family --- --- --- 3,627 220
Office 9,069 13,721 --- 12,151 1,161
Industrial and warehouse 9,682 10,803 --- 10,586 595
Purchased credit-impaired 82,073 154,869 --- 104,513 10,875
Other commercial real estate 6,002 6,924 --- 7,954 434
Total commercial real estate $ 162,599 $ 251,097 $ --- $ 185,595 $ 15,735
Automobile $ --- $ --- $ --- $ --- $ ---
Home equity:
Secured by first-lien $ --- $ --- $ --- $ --- $ ---
Secured by junior-lien --- --- --- --- ---
Total home equity $ --- $ --- $ --- $ --- $ ---
Residential mortgage:
Residential mortgage $ --- $ --- $ --- $ --- $ ---
Purchased credit-impaired --- --- --- --- ---
Total residential mortgage $ --- $ --- $ --- $ --- $ ---
Other consumer:
Other consumer $ --- $ --- $ --- $ --- $ ---
Purchased credit-impaired 129 219 --- 137 17
Total other consumer $ 129 $ 219 $ --- $ 137 $ 17
With an allowance recorded:
Commercial and Industrial: (3)
Owner occupied $ 40,271 $ 52,810 $ 3,421 $ 41,469 $ 1,390
Purchased credit-impaired 35,526 50,798 2,404 47,442 4,708
Other commercial and industrial 50,829 64,497 2,708 59,672 3,242
Total commercial and industrial $ 126,626 $ 168,105 $ 8,533 $ 148,583 $ 9,340
Commercial real estate: (4)
Retail properties $ 72,339 $ 93,395 $ 5,984 $ 64,414 $ 1,936
Multi family 13,484 15,408 1,944 14,922 651
Office 50,307 54,921 9,927 48,113 1,808
Industrial and warehouse 9,162 10,561 808 15,322 541
Purchased credit-impaired --- --- --- --- ---
Other commercial real estate 42,544 50,960 16,272 36,687 1,547
Total commercial real estate $ 187,836 $ 225,245 $ 34,935 $ 179,458 $ 6,483
Automobile $ 37,084 $ 38,758 $ 682 $ 39,861 $ 2,955
Home equity:
Secured by first-lien $ 110,024 $ 116,846 $ 2,396 $ 96,184 $ 4,116
Secured by junior-lien 98,957 143,967 5,607 65,986 3,379
Total home equity $ 208,981 $ 260,813 $ 8,003 $ 162,170 $ 7,495
Residential mortgage:
Residential mortgage $ 387,937 $ 427,924 $ 10,555 $ 377,530 $ 11,752
Purchased credit-impaired 2,498 3,681 36 2,285 331
Total residential mortgage $ 390,435 $ 431,605 $ 10,591 $ 379,815 $ 12,083
Other consumer:
Other consumer $ 1,041 $ 1,041 $ 136 $ 2,111 $ 116
Purchased credit-impaired --- --- --- --- ---
Total other consumer $ 1,041 $ 1,041 $ 136 $ 2,111 $ 116
(1) These tables do not include loans fully charged-off.
(2) All automobile, home equity, residential mortgage, and other consumer impaired loans included in these tables are considered impaired due to their status as a TDR.
(3) At December 31, 2014, $62,737 thousand of the $202,376 thousand C&I loans with an allowance recorded were considered impaired due to their status as a TDR. At December 31, 2013, $43,805 thousand of the $126,626 thousand C&I loans with an allowance recorded were considered impaired due to their status as a TDR.
(4) At December 31, 2014, $27,423 thousand of the $144,162 thousand CRE loans with an allowance recorded were considered impaired due to their status as a TDR. At December 31, 2013, $24,805 thousand of the $187,836 thousand CRE loans with an allowance recorded were considered impaired due to their status as a TDR.
(5) The differences between the ending balance and unpaid principal balance amounts represent partial charge-offs.
(6) At December 31, 2014, $24,470 thousand of the $371,489 thousand residential mortgage loans with an allowance recorded were guaranteed by the U.S. government. At December 31, 2013, $49,225 thousand of the $390,435 thousand residential mortgage loans with an allowance recorded were guaranteed by the U.S. government.

TDR Loans

TDRs are modified loans where a concession was provided to a borrower experiencing financial difficulties. Loan modifications are considered TDRs when the concessions provided are not available to the borrower through either normal channels or other sources. However, not all loan modifications are TDRs.

The amount of interest that would have been recorded under the original terms for total accruing TDR loans was $45.0 million, $43.9 million, and $41.2 million for 2014, 2013, and 2012, respectively. The total amount of interest recorded to interest income for these loans was $38.6 million, $35.7 million, and $32.2 million for 2014, 2013, and 2012, respectively.

TDR Concession Types

The Company’s standards relating to loan modifications consider, among other factors, minimum verified income requirements, cash flow analysis, and collateral valuations. Each potential loan modification is reviewed individually and the terms of the loan are modified to meet a borrower’s specific circumstances at a point in time. All commercial TDRs are reviewed and approved by our SAD. The types of concessions provided to borrowers include:

  • Interest rate reduction: A reduction of the stated interest rate to a nonmarket rate for the remaining original life of the debt.

  • Amortization or maturity date change beyond what the collateral supports, including any of the following:

  • Lengthens the amortization period of the amortized principal beyond market terms. This concession reduces the minimum monthly payment and increases the amount of the balloon payment at the end of the term of the loan. Principal is generally not forgiven.
  • Reduces the amount of loan principal to be amortized and increases the amount of the balloon payment at the end of the term of the loan. This concession also reduces the minimum monthly payment. Principal is generally not forgiven.
  • Extends the maturity date or dates of the debt beyond what the collateral supports. This concession generally applies to loans without a balloon payment at the end of the term of the loan.

  • Chapter 7 bankruptcy: A bankruptcy court’s discharge of a borrower’s debt is considered a concession when the borrower does not reaffirm the discharged debt.

  • Other: A concession that is not categorized as one of the concessions described above. These concessions include, but are not limited to: principal forgiveness, collateral concessions, covenant concessions, and reduction of accrued interest. Principal forgiveness may result from any TDR modification of any concession type. However, the aggregate amount of principal forgiven as a result of loans modified as TDRs during the years ended December 31, 2014 and 2013, was not significant.

Following is a description of TDRs by the different loan types:

Commercial loan TDRs – Commercial accruing TDRs often result from loans receiving a concession with terms that are not considered a market transaction to Huntington. The TDR remains in accruing status as long as the customer is less than 90-days past due on payments per the restructured loan terms and no loss is expected.

Commercial nonaccrual TDRs result from either: (1) an accruing commercial TDR being placed on nonaccrual status, or (2) a workout where an existing commercial NAL is restructured and a concession was given. At times, these workouts restructure the NAL so that two or more new notes are created. The primary note is underwritten based upon our normal underwriting standards and is sized so projected cash flows are sufficient to repay contractual principal and interest. The terms on the secondary note(s) vary by situation, and may include notes that defer principal and interest payments until after the primary note is repaid. Creating two or more notes often allows the borrower to continue a project or weather a temporary economic downturn and allows Huntington to right-size a loan based upon the current expectations for a borrower’s or project’s performance.

Our strategy involving TDR borrowers includes working with these borrowers to allow them to refinance elsewhere, as well as allow them time to improve their financial position and remain our customer through refinancing their notes according to market terms and conditions in the future.  A subsequent refinancing or modification of a loan may occur when either the loan matures according to the terms of the TDR-modified agreement or the borrower requests a change to the loan agreements. At that time, the loan is evaluated to determine if it is creditworthy. It is subjected to the normal underwriting standards and processes for other similar credit extensions, both new and existing. 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, whereas a continuation of the prior note requires a continuation of the TDR designation.  In order for a TDR designation to be removed, the borrower must no longer be experiencing financial difficulties and the terms of the refinanced loan must not represent a concession. 

Residential Mortgage loan TDRs – Residential mortgage TDRs represent loan modifications associated with traditional first-lien mortgage loans in which a concession has been provided to the borrower. The primary concessions given to residential mortgage borrowers are amortization or maturity date changes and interest rate reductions. Residential mortgages identified as TDRs involve borrowers unable to refinance their mortgages through the Company’s normal mortgage origination channels or through other independent sources. Some, but not all, of the loans may be delinquent.

Automobile, Home Equity, and Other Consumer loan TDRs – The Company may make similar interest rate, term, and principal concessions as with residential mortgage loan TDRs.

TDR Impact on Credit Quality

Huntington’s ALLL is largely determined by updated risk ratings assigned to commercial loans, updated borrower credit scores on consumer loans, and borrower delinquency history in both the commercial and consumer portfolios. These updated risk ratings and credit scores consider the default history of the borrower, including payment redefaults. As such, the provision for credit losses is impacted primarily by changes in borrower payment performance rather than the TDR classification. 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.

Our TDRs may include multiple concessions and the disclosure classifications are presented based on the primary concession provided to the borrower. The majority of our concessions for the C&I and CRE portfolios are the extension of the maturity date coupled with an increase in the interest rate. In these instances, the primary concession is the maturity date extension.

TDR concessions may also result in the reduction of the ALLL within the C&I and CRE portfolios. This reduction is derived from payments and the resulting application of the reserve calculation within the ALLL.  The transaction reserve for non-TDR C&I and CRE loans is calculated based upon several estimated probability factors, such as PD and LGD, both of which were previously discussed.  Upon the occurrence of a TDR in our C&I and CRE portfolios, the reserve is measured based on discounted expected cash flows or collateral value, less anticipated selling costs, of the modified loan in accordance with ASC 310-10.  The resulting TDR ALLL calculation often results in a lower ALLL amount because (1) the discounted expected cash flows or collateral value, less anticipated selling costs, indicate a lower estimated loss, (2) if the modification includes a rate increase, the discounting of the cash flows on the modified loan, using the pre-modification interest rate, exceeds the carrying value of the loan, or (3) payments may occur as part of the modification. The ALLL for C&I and CRE loans may increase as a result of the modification, as the discounted cash flow analysis may indicate additional reserves are required.

TDR concessions on consumer loans may increase the ALLL.  The concessions made to these borrowers often include interest rate reductions, and therefore, the TDR ALLL calculation results in a greater ALLL compared with the non-TDR calculation as the reserve is measured based on the estimation of the discounted expected cash flows or collateral value, less anticipated selling costs, on the modified loan in accordance with ASC 310-10. The resulting TDR ALLL calculation often results in a higher ALLL amount because (1) the discounted expected cash flows or collateral value, less anticipated selling costs, indicate a higher estimated loss or, (2) due to the rate decrease, the discounting of the cash flows on the modified loan, using the pre-modification interest rate, indicates a reduction in the expected cash flows or collateral value, less anticipated selling costs. In certain instances, the ALLL may decrease as a result of payments made in connection with the modification.

Commercial loan TDRs – In instances where the bank substantiates that it will collect its outstanding balance in full, the note is considered for return to accrual status upon the borrower sustaining sufficient cash flows for a six-month period of time. This six-month period could extend before or after the restructure date. If a charge-off was taken as part of the restructuring, any interest or principal payments received on that note are applied to first reduce the bank’s outstanding book balance and then to recoveries of charged-off principal, unpaid interest, and/or fee expenses while the TDR is in nonaccrual status.

Residential Mortgage, Automobile, Home Equity, and Other Consumer loan TDRs – Modified loans identified as TDRs are aggregated into pools for analysis. Cash flows and weighted average interest rates are used to calculate impairment at the pooled-loan level. Once the loans are aggregated into the pool, they continue to be classified as TDRs until contractually repaid or charged-off.

Residential mortgage loans not guaranteed by a U.S. government agency such as the FHA, VA, and the USDA, including TDR loans, are reported as accrual or nonaccrual based upon delinquency status. Nonaccrual TDRs are those that are greater than 150-days contractually past due. Loans guaranteed by U.S. government organizations continue to accrue interest upon delinquency.

The following table presents by class and by the reason for the modification the number of contracts, post-modification outstanding balance, and the financial effects of the modification for the years ended December 31, 2014 and 2013:

New Troubled Debt Restructurings During The Year Ended(1)
December 31, 2014 December 31, 2013
Post-modification
Outstanding Post-modification
Number of Ending Financial effects Number of Outstanding Financial effects
(dollar amounts in thousands) Contracts Balance of modification(2) Contracts Balance of modification(2)
C&I - Owner occupied:(3)
Interest rate reduction 19 $ 2,484 $ 20 22 $ 6,601 $ (466)
Amortization or maturity date change 97 32,145 336 64 15,662 (12)
Other 7 2,051 (36) 16 7,367 337
Total C&I - Owner occupied 123 $ 36,680 $ 320 102 $ 29,630 $ (141)
C&I - Other commercial and industrial:(3)
Interest rate reduction 25 $ 50,534 $ (1,982) 26 $ 75,447 $ (1,040)
Amortization or maturity date change 285 149,339 (2,407) 120 53,340 1,295
Other 21 7,613 (7) 35 18,290 (1,163)
Total C&I - Other commercial and industrial 331 $ 207,486 $ (4,396) 181 $ 147,077 $ (908)
CRE - Retail properties:(3)
Interest rate reduction 5 $ 11,381 $ 420 4 $ 1,116 $ (8)
Amortization or maturity date change 24 27,415 (267) 21 27,550 4,159
Other 9 13,765 (35) 12 19,842 (558)
Total CRE - Retail properties 38 $ 52,561 $ 118 37 $ 48,508 $ 3,593
CRE - Multi family:(3)
Interest rate reduction 20 $ 3,484 $ (75) 10 $ 4,444 $ 7
Amortization or maturity date change 40 9,791 197 16 2,345 415
Other 8 5,016 57 5 8,085 (2)
Total CRE - Multi family 68 $ 18,291 $ 179 31 $ 14,874 $ 420
CRE - Office:(3)
Interest rate reduction 2 $ 120 $ (1) 7 $ 6,504 $ 1,656
Amortization or maturity date change 22 18,157 (424) 16 12,388 91
Other 5 35,476 (3,153) 6 7,044 655
Total CRE - Office 29 $ 53,753 $ (3,578) 29 $ 25,936 $ 2,402
CRE - Industrial and warehouse:(3)
Interest rate reduction 2 $ 4,046 $ --- 1 $ 2,682 $ (476)
Amortization or maturity date change 17 9,187 164 9 4,069 (185)
Other 1 977 --- 1 5,867 ---
Total CRE - Industrial and Warehouse 20 $ 14,210 $ 164 11 $ 12,618 $ (661)
CRE - Other commercial real estate:(3)
Interest rate reduction 8 $ 5,224 $ 146 19 $ 10,996 $ 96
Amortization or maturity date change 55 76,353 (2,789) 21 17,851 4,923
Other 4 1,809 (127) 13 9,735 (101)
Total CRE - Other commercial real estate 67 $ 83,386 $ (2,770) 53 $ 38,582 $ 4,918
Automobile:(3)
Interest rate reduction 92 $ 758 $ 15 14 $ 106 $ ---
Amortization or maturity date change 1,880 12,120 151 1,659 9,420 (76)
Chapter 7 bankruptcy 625 4,938 66 1,313 7,748 301
Other --- --- --- --- --- ---
Total Automobile 2,597 $ 17,816 $ 232 2,986 $ 17,274 $ 225
Residential mortgage:(3)
Interest rate reduction 27 $ 3,692 $ 19 65 $ 11,662 $ 3
Amortization or maturity date change 333 44,027 552 442 58,344 384
Chapter 7 bankruptcy 182 18,635 715 458 39,813 1,345
Other 5 526 5 17 1,837 39
Total Residential mortgage 547 $ 66,880 $ 1,291 982 $ 111,656 $ 1,771
First-lien home equity:(3)
Interest rate reduction 193 $ 15,172 $ 764 134 $ 12,244 $ 1,149
Amortization or maturity date change 289 23,272 (1,051) 279 19,280 (1,084)
Chapter 7 bankruptcy 105 7,296 727 257 14,987 748
Other --- --- --- --- --- ---
Total First-lien home equity 587 $ 45,740 $ 440 670 $ 46,511 $ 813
Junior-lien home equity:(3)
Interest rate reduction 187 $ 6,960 $ 296 25 $ 1,179 $ 190
Amortization or maturity date change 1,467 58,129 (6,955) 1,491 55,389 (5,431)
Chapter 7 bankruptcy 201 3,014 3,141 1,564 15,303 33,623
Other --- --- --- --- --- ---
Total Junior-lien home equity 1,855 $ 68,103 $ (3,518) 3,080 $ 71,871 $ 28,382
Other consumer:(3)
Interest rate reduction 7 $ 123 $ 3 5 $ 306 $ 48
Amortization or maturity date change 48 1,803 12 11 117 5
Chapter 7 bankruptcy 25 483 (50) 36 565 29
Other --- --- --- --- --- ---
Total Other consumer 80 $ 2,409 $ (35) 52 $ 988 $ 82
Total new troubled debt restructurings 6,342 $ 667,315 $ (11,553) 8,214 $ 565,525 $ 40,896
(1) TDRs may include multiple concessions and the disclosure classifications are based on the primary concession provided to the borrower.
(2) Amounts represent the financial impact via provision (recovery) for loan and lease losses as a result of the modification.
(3) Post-modification balances approximate pre-modification balances. The aggregate amount of charge-offs as a result of a restructuring are not significant.

Any loan within any portfolio or class is considered as payment redefaulted at 90-days past due.

The following table presents TDRs that have redefaulted within one year of modification during the years ended December 31, 2014 and 2013:

Troubled Debt Restructurings That Have Redefaulted
Within One Year of Modification During The Year Ended
December 31, 2014(1) December 31, 2013(1)
(dollar amounts in thousands) Number of Ending Number of Ending
Contracts Balance Contracts Balance
C&I - Owner occupied:
Interest rate reduction --- $ --- --- $ ---
Amortization or maturity date change 6 946 10 1,144
Other 1 230 7 1,221
Total C&I - Owner occupied 7 $ 1,176 17 $ 2,365
C&I - Other commercial and industrial:
Interest rate reduction 1 $ 30 --- $ ---
Amortization or maturity date change 14 1,555 17 476
Other 3 37 --- ---
Total C&I - Other commercial and industrial 18 $ 1,622 17 $ 476
CRE - Retail Properties:
Interest rate reduction --- $ --- 1 $ 302
Amortization or maturity date change 1 483 4 993
Other --- --- 1 186
Total CRE - Retail properties 1 $ 483 6 $ 1,481
CRE - Multi family:
Interest rate reduction --- $ --- --- $ ---
Amortization or maturity date change 4 2,827 2 225
Other 1 176 --- ---
Total CRE - Multi family 5 $ 3,003 2 $ 225
CRE - Office:
Interest rate reduction --- $ --- --- $ ---
Amortization or maturity date change 3 1,738 2 1,131
Other --- --- --- ---
Total CRE - Office 3 $ 1,738 2 $ 1,131
CRE - Industrial and Warehouse:
Interest rate reduction 1 $ 1,339 --- $ ---
Amortization or maturity date change 1 756 1 361
Other --- --- 1 726
Total CRE - Industrial and Warehouse 2 $ 2,095 2 $ 1,087
CRE - Other commercial real estate:
Interest rate reduction 1 $ 169 --- $ ---
Amortization or maturity date change 2 758 4 774
Other --- --- 1 5
Total CRE - Other commercial real estate 3 $ 927 5 $ 779
Automobile:
Interest rate reduction --- $ --- 1 $ 112
Amortization or maturity date change 40 328 37 380
Chapter 7 bankruptcy 53 374 137 617
Other --- --- --- ---
Total Automobile 93 $ 702 175 $ 1,109
Residential mortgage:
Interest rate reduction 11 $ 1,516 4 $ 424
Amortization or maturity date change 82 8,974 78 11,263
Chapter 7 bankruptcy 37 3,187 71 6,647
Other --- --- 2 418
Total Residential mortgage 130 $ 13,677 155 $ 18,752
First-lien home equity:
Interest rate reduction 5 $ 335 1 $ 87
Amortization or maturity date change 16 2,109 6 629
Chapter 7 bankruptcy 16 1,005 16 1,235
Other --- --- --- ---
Total First-lien home equity 37 $ 3,449 23 $ 1,951
Junior-lien home equity:
Interest rate reduction 1 $ 11 1 $ ---
Amortization or maturity date change 31 1,841 9 478
Chapter 7 bankruptcy 39 620 40 718
Other --- --- --- ---
Total Junior-lien home equity 71 $ 2,472 50 $ 1,196
Other consumer:
Interest rate reduction --- $ --- --- $ ---
Amortization or maturity date change --- --- --- ---
Chapter 7 bankruptcy --- --- 3 96
Other --- --- --- ---
Total Other consumer --- $ --- 3 $ 96
Total troubled debt restructurings with subsequent redefault 370 $ 31,344 457 $ 30,648
(1) Subsequent redefault is defined as a payment redefault within 12 months of the restructuring date. Payment redefault is defined as 90-days past due for any loan in any portfolio or class. Any loan in any portfolio may be considered to be in payment redefault prior to the guidelines noted above when collection of principal or interest is in doubt.

Pledged Loans and Leases

The Bank has access to the Federal Reserve’s discount window and advances from the FHLB – Cincinnati. At December 31, 2014, these borrowings and advances are secured by $18.0 billion of loans.