Annual report pursuant to Section 13 and 15(d)

Loans and Leases and Allowance for Credit Losses

v2.4.0.8
Loans and Leases and Allowance for Credit Losses
 12 Months Ended
Dec. 31, 2013
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, 2013 and 2012, the aggregate amount of these net unamortized deferred loan origination fees and net unearned income was $192.9 million and $174.5 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.

Effective December 31, 2013 approximately $600.4 million of direct purchase municipal instruments were reclassified from C&I loans to available-for-sale securities.

 

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. Lease financing receivables at December 31, 2012 also included a minimal amount of automobile leases, which were included in Consumer loans. Net investments in lease financing receivables by category at December 31, 2013 and 2012 were as follows:

      At December 31,
(dollar amounts in thousands)     2013     2012
             
Commercial and industrial:            
Lease payments receivable   $ 1,426,928   $ 1,477,296
Estimated residual value of leased assets     409,184     332,369
Gross investment in commercial lease financing receivables     1,836,112     1,809,665
Net deferred origination costs     3,105     2,805
Unearned income     (165,052)     (142,904)
Total net investment in commercial lease financing receivables   $ 1,674,165   $ 1,669,566
             
Consumer:            
Total net investment in consumer lease financing receivables   $ ---   $ 615

The future lease rental payments due from customers on direct financing leases at December 31, 2013, totaled $1.4 billion and were as follows: $0.6 billion in 2014, $0.3 billion in 2015, $0.2 billion in 2016, $0.1 billion in 2017, $0.1 billion in 2018, and $0.1 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 were transferred to Huntington and recorded at fair value in accordance with applicable accounting guidance, ASC 805. The fair values for the loans were estimated using discounted cash flow analyses using interest rates currently being offered for loans with similar terms (Level 3), and reflected an estimate of probable losses and the credit risk associated with the loans.

 

Purchased Credit-Impaired Loans

 

The fair values for purchased credit-impaired loans were estimated using discounted cash flow analyses, including interest rates currently being offered for loans with similar terms (Level 3) and prepayment assumptions. This value was reduced by an estimate of probable losses and the credit risk associated with the loans.

 

The following table presents a rollforward of the accretable yield for the year ended December 31, 2013 and 2012:

           
(dollar amounts in thousands) 2013   2012
Balance at January 1, $ 23,251   $ ---
Impact of acquisition on March 30, 2012   ---     27,586
Adjustments resulting from changes in purchase price allocation   ---     3,625
Accretion   (15,931)     (7,960)
Reclassification from nonaccretable difference   20,675     ---
Balance at December 31, $ 27,995   $ 23,251
           

The allowance for loan losses recorded on the purchased credit-impaired loan portfolio at December 31, 2013 and 2012 was $2.4 million and none, respectively. The following table reflects the ending and unpaid balances of all contractually required payments and carrying amounts of the acquired loans at December 31, 2013 and December 31, 2012:

    December 31, 2013   December 31, 2012
(in thousands)   Ending Balance     Unpaid Balance   Ending Balance     Unpaid Balance
Commercial and industrial $ 35,526   $ 50,798 $ 54,472   $ 80,294
Commercial real estate   82,073     154,869   126,923     226,093
Residential mortgage   2,498     3,681   2,243     4,104
Other consumer   129     219   140     245
Total $ 120,226   $ 209,567 $ 183,778   $ 310,736

Loan Purchases and Sales

The following table summarizes significant portfolio loan purchase and sale activity for the years ended December 31, 2013, and 2012.

    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, 2013 $ 109,723   $ ---   $ ---   $ ---   $ ---   $ ---   $ 109,723
  Year ended December 31, 2012   568,467     378,122     ---     13,025     62,324     85     1,022,023
                                           
Portfolio loans sold or transferred to loans held for sale during the:                        
  Year ended December 31, 2013   225,930     4,767     ---     ---     205,334     ---     436,031
  Year ended December 31, 2012   238,121     74,703     2,783,748     ---     389,603     ---     3,486,175

In 2012, $2.3 billion automobile loans were securitized with the resulting residual sold. In 2013, Huntington did not securitize any automobile loans. The securitizations were treated as a sale.

 

NALs and Past Due Loans

 

The following table presents NALs by loan class for the years ended December 31, 2013 and 2012 (1):

      December 31,
(dollar amounts in thousands)   2013   2012
           
Commercial and industrial:        
  Owner occupied $ 38,321 $ 53,009
  Other commercial and industrial   18,294   37,696
Total commercial and industrial $ 56,615 $ 90,705
           
Commercial real estate:        
  Retail properties $ 27,328 $ 31,791
  Multi family   9,289   19,765
  Office   18,995   30,341
  Industrial and warehouse   6,310   6,841
  Other commercial real estate   11,495   38,390
Total commercial real estate $ 73,417 $ 127,128
           
Automobile $ 6,303 $ 7,823
           
Home equity:        
  Secured by first-lien $ 36,288 $ 27,091
  Secured by junior-lien   29,901   32,434
Total home equity $ 66,189 $ 59,525
           
Residential mortgage:        
Residential mortgage $ 119,532 $ 122,452
Total residential mortgages $ 119,532 $ 122,452
           
Other consumer:        
Other consumer $ --- $ ---
Total nonaccrual loans $ 322,056 $ 407,633
           
(1) December 31, 2013 and 2012, amounts included $75.5 million and $60.1 million related to Chapter 7 bankruptcy loans.

The amount of interest that would have been recorded under the original terms for total NAL loans was $23.4 million, $40.4 million, and $38.4 million for 2013, 2012, and 2011, respectively. The total amount of interest recorded to interest income for these loans was $5.0 million, $4.8 million, and $5.1 million in 2013, 2012, and 2011, respectively.

 

The following table presents an aging analysis of loans and leases for the years ended December 31, 2013 and 2012 (1):

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(3)
  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
                                   
December 31, 2012
                              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 $ 11,409 $ 6,302 $ 31,997 $ 49,708   $ 4,236,211 $ 4,285,919   $ ---
  Purchased credit-impaired   986   3,533   26,648   31,167     23,305   54,472     26,648(2)
  Other commercial and industrial   20,273   4,211   14,786   39,270     12,591,028   12,630,298     ---
Total commercial and industrial $ 32,668 $ 14,046 $ 73,431 $ 120,145   $ 16,850,544 $ 16,970,689   $ 26,648
                                   
Commercial real estate:                                
  Retail properties $ 3,459 $ 4,203 $ 9,677 $ 17,339   $ 1,413,520 $ 1,430,859   $ ---
  Multi family   7,961   1,314   12,062   21,337     963,063   984,400     ---
  Office   1,054   2,415   23,335   26,804     909,310   936,114     ---
  Industrial and warehouse   6,597   118   5,433   12,148     584,754   596,902     ---
  Purchased credit-impaired   556   1,751   56,660   58,967     67,956   126,923     56,660(2)
  Other commercial real estate 2,725   2,192   25,463   30,380     1,293,662   1,324,042     ---
Total commercial real estate $ 22,352 $ 11,993 $ 132,630 $ 166,975   $ 5,232,265 $ 5,399,240   $ 56,660
                                   
Automobile $ 36,267 $ 7,803 $ 4,438 $ 48,508   $ 4,585,312 $ 4,633,820   $ 4,418
                                   
Home equity:                                
  Secured by first-lien $ 26,288 $ 9,992 $ 28,322 $ 64,602   $ 4,315,985 $ 4,380,587   $ 5,202
  Secured by junior-lien   34,365   16,553   35,150   86,068     3,868,687   3,954,755     12,998
Total home equity   60,653 $ 26,545 $ 63,472 $ 150,670   $ 8,184,672 $ 8,335,342   $ 18,200
                                   
Residential mortgage                                
  Residential mortgage   118,582 $ 44,747 $ 164,035 $ 327,364   $ 4,640,065 $ 4,967,429   $ 92,925(4)
  Purchased credit-impaired   58   ---   609   667     1,576   2,243     609(2)
Total residential mortgage $ 118,640 $ 44,747 $ 164,644 $ 328,031   $ 4,641,641 $ 4,969,672   $ 93,534
                                   
Other consumer                                
  Other consumer   7,431 $ 2,117 $ 1,672 $ 11,220   $ 408,302 $ 419,522   $ 1,672
  Purchased credit-impaired   ---   76   ---   76     64   140     ---(2)
Total other consumer $ 7,431 $ 2,193 $ 1,672 $ 11,296   $ 408,366 $ 419,662   $ 1,672
                                   
Total loans and leases $ 278,011 $ 107,327 $ 440,287 $ 825,625   $ 39,902,800 $ 40,728,425   $ 201,132
                                   
(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 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 $87,985 thousand guaranteed by the U.S. government.
(4) Includes $90,816 thousand guaranteed by the U.S. government.

Allowance for Credit Losses

 

The ACL is increased through recoveries and the provision for credit losses that is charged to earnings, based on Management's quarterly evaluation, and is reduced by NCOs 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, 2013, 2012, and 2011:

      Commercial Commercial   Home Residential Other    
  and Industrial Real Estate Automobile Equity Mortgage Consumer Total
(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

(dollar amounts in thousands)                            
Year Ended December 31, 2011:                            
                                 
  ALLL balance, beginning of period $ 340,614 $ 588,251 $ 49,488 $ 150,630 $ 93,289 $ 26,736 $ 1,249,008
    Loan charge-offs   (134,385)   (182,759)   (33,593)   (109,427)   (65,069)   (32,520)   (557,753)
    Recoveries of loans previously charged-off   44,686   34,658   18,526   7,630   8,388   6,776   120,664
    Provision for loan and lease losses   24,452   (51,444)   17,042   95,040   52,226   30,414   167,730
    Allowance for loans sold or transferred to loans held for sale   ---   ---   (13,181)   ---   (1,640)   ---   (14,821)
  ALLL balance, end of period $ 275,367 $ 388,706 $ 38,282 $ 143,873 $ 87,194 $ 31,406 $ 964,828
  AULC balance, beginning of period $ 32,726 $ 6,158 $ --- $ 2,348 $ 1 $ 894 $ 42,127
    Provision for unfunded loan commitments and letters-of-credit   6,932   (306)   ---   (214)   ---   (83)   6,329
  AULC balance, end of period   39,658   5,852   ---   2,134   1   811   48,456
  ACL balance, end of period $ 315,025 $ 394,558 $ 38,282 $ 146,007 $ 87,195 $ 32,217 $ 1,013,284
                                 

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 (FICO), which we update quarterly. A FICO credit bureau score is a credit score developed by Fair Isaac Corporation based on data provided by the credit bureaus. The FICO 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 FICO 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 table below also shows an increase in FICO scores less than 650 for the automobile portfolio. This increase is proportional to growth in the portfolio and does not reflect a deterioration in asset quality for the portfolio, as other risk characteristics mitigate any increased level of risk associated with the FICO score distribution.

 

The following table presents each loan and lease class by credit quality indicator for the years ended December 31, 2013 and 2012:

    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
                       
    December 31, 2012
  Credit Risk Profile by UCS classification
(dollar amounts in thousands) Pass OLEM Substandard Doubtful Total
Commercial and industrial:                    
  Owner occupied $ 3,970,597 $ 108,731 $ 205,822 $ 769 $ 4,285,919
  Purchased impaired   1,663   6,555   46,254   ---   54,472
  Other commercial and industrial   12,146,017   145,111   337,805   1,365   12,630,298
Total commercial and industrial $ 16,118,277 $ 260,397 $ 589,881 $ 2,134 $ 16,970,689
                       
Commercial real estate:                    
  Retail properties $ 1,184,987 $ 63,976 $ 181,896 $ --- $ 1,430,859
  Multi family   902,616   24,098   57,548   138   984,400
  Office   826,533   26,488   83,093   ---   936,114
  Industrial and warehouse   540,484   15,132   41,286   ---   596,902
  Purchased impaired   10,052   18,085   98,786   ---   126,923
  Other commercial real estate   1,177,213   43,454   103,262   113   1,324,042
Total commercial real estate $ 4,641,885 $ 191,233 $ 565,871 $ 251 $ 5,399,240
                       
    Credit Risk Profile by FICO score (1)
    750+ 650-749 <650 Other (2) Total
Automobile $ 2,233,439 $ 1,900,824 $ 682,518 $ 117,039 $ 4,933,820(3)
                       
Home equity:                    
  Secured by first-lien   2,618,888   1,345,621   357,019   59,059   4,380,587
  Secured by junior-lien   2,046,143   1,375,636   491,226   41,750   3,954,755
Total home equity $ 4,665,031 $ 2,721,257 $ 848,245 $ 100,809 $ 8,335,342
                       
Residential mortgage:                    
  Residential mortgage   2,561,210   1,673,485   711,750   20,984   4,967,429
  Purchased impaired   373   1,303   567   ---   2,243
Total residential mortgage   2,561,583 $ 1,674,788 $ 712,317 $ 20,984 $ 4,969,672
                       
Other consumer                    
  Other consumer   169,792   167,389   59,815   22,526   419,522
  Purchased impaired   ---   93   47   ---   140
Total other consumer loans   169,792 $ 167,482 $ 59,862 $ 22,526 $ 419,662
                       
(1) Reflects currently updated customer credit scores.
(2) Reflects deferred fees and costs, loans in process, loans to legal entities, etc.
(3) Includes $0.3 billion of loans reflected as loans held for sale.

Impaired Loans

A loan is considered to be impaired when, based on current information and events, it is probable that not all amounts due according to the contractual terms of the loan agreement will be collected. 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, 2013, and 2012 (1):

                                 
      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 ALLL 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 loan and lease ending balance:                            
                                 
    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

                                 
ALLL at December 31, 2012:                            
(dollar amounts in thousands)                            
                                 
  Portion of ending balance:                            
                                 
    Attributable to loans individually evaluated for impairment   11,694   31,133   1,446   4,783   14,176   213   63,445
    Attributable to loans collectively evaluated for impairment   229,357   254,236   33,533   113,981   47,482   27,041   705,630
  Total ALLL balance $ 241,051 $ 285,369 $ 34,979 $ 118,764 $ 61,658 $ 27,254 $ 769,075
                                 
Loans and Leases at December 31, 2012:                        
(dollar amounts in thousands)                            
                                 
  Portion of ending balance:                            
                                 
    Attributable to purchased credit-impaired loans $ 54,472 $ 126,923 $ --- $ --- $ 2,243 $ 140 $ 183,778
    Individually evaluated for impairment   119,535   298,891   43,607   117,532   374,526   2,657   956,748
    Collectively evaluated for impairment   16,796,682   4,973,426   4,590,213   8,217,810   4,592,903   416,865   39,587,899
  Total loans evaluated for impairment $ 16,970,689 $ 5,399,240 $ 4,633,820 $ 8,335,342 $ 4,969,672 $ 419,662 $ 40,728,425
                                 
  Portion of ending balance:                            
    With allowance assigned to the loan and lease balances $ 86,644 $ 193,413 $ 43,607 $ 117,532 $ 374,526 $ 2,657 $ 818,379
    With no allowance assigned to the loan and lease balances   87,363   232,401   ---   ---   2,243   140   322,147
  Total $ 174,007 $ 425,814 $ 43,607 $ 117,532 $ 376,769 $ 2,797 $ 1,140,526
                                 
  Average balance of impaired loans $ 179,692 $ 474,362 $ 39,139 $ 79,523 $ 348,727 $ 4,448 $ 1,125,891
  ALLL on impaired loans   11,694   31,133   1,446   4,783   14,176   213   63,445

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, 2013 and 2012 (1), (2):

                    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: (6)                      
    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

(dollar amounts in thousands)               Year Ended  
  December 31, 2012   December 31, 2012  
          Unpaid           Interest  
      Ending Principal Related   Average Income  
      Balance Balance (5) Allowance   Balance Recognized  
                             
With no related allowance recorded:                        
  Commercial and Industrial:                        
    Owner occupied $ 1,050 $ 1,091 $ ---   $ 4,246 $ 77  
    Purchased credit-impaired   54,472   80,294   ---     57,602   2,359  
    Other commercial and industrial   31,841   54,520   ---     11,922   555  
  Total commercial and industrial $ 87,363 $ 135,905 $ ---   $ 73,770 $ 2,991  
                             
  Commercial real estate:                        
    Retail properties $ 54,216 $ 56,569 $ ---   $ 51,939 $ 2,758  
    Multi family   5,719   5,862   ---     5,631   353  
    Office   20,051   24,843   ---     6,734   405  
    Industrial and warehouse   15,013   17,476   ---     9,877   501  
    Purchased credit-impaired   126,923   226,093   ---     141,278   5,497  
    Other commercial real estate   10,479   10,728   ---     15,125   501  
  Total commercial real estate $ 232,401 $ 341,571 $ ---   $ 230,584 $ 10,015  
                             
  Automobile $ --- $ --- $ ---   $ --- $ ---  
                             
  Home equity:                        
    Secured by first-lien $ --- $ --- $ ---   $ --- $ ---  
    Secured by junior-lien   ---   ---   ---     ---   ---  
  Total home equity $ --- $ --- $ ---   $ --- $ ---  
                             
  Residential mortgage:                        
    Residential mortgage $ --- $ --- $ ---   $ --- $ ---  
    Purchased credit-impaired   2,243   4,104   ---     3,521   97  
  Total residential mortgage $ 2,243 $ 4,104 $ ---   $ 3,521 $ 97  
                             
  Other consumer:                        
    Other consumer $ --- $ --- $ ---   $ --- $ ---  
    Purchased credit-impaired   140   245   ---     622   6  
  Total other consumer $ 140 $ 245 $ ---   $ 622 $ 6  
                             
With an allowance recorded:                        
  Commercial and Industrial: (3)                        
    Owner occupied $ 46,266 $ 56,925 $ 5,730   $ 40,029 $ 1,327  
    Other commercial and industrial   40,378   52,996   5,964     65,893   2,304  
  Total commercial and industrial $ 86,644 $ 109,921 $ 11,694   $ 105,922 $ 3,631  
                             
  Commercial real estate: (4)                        
    Retail properties $ 65,004 $ 73,000 $ 8,144   $ 107,842 $ 4,730  
    Multi family   17,410   18,531   2,662     27,953   1,371  
    Office   40,375   45,164   9,214     18,751   379  
    Industrial and warehouse   22,450   25,374   1,092     24,454   717  
    Other commercial real estate   48,174   63,148   10,021     64,778   2,413  
  Total commercial real estate $ 193,413 $ 225,217 $ 31,133   $ 243,778 $ 9,610  
                             
  Automobile $ 43,607 $ 44,790 $ 1,446   $ 39,139 $ 3,382  
                             
  Home equity loans and lines-of-credit:                        
    Secured by first-lien $ 76,258 $ 80,831 $ 1,329   $ 54,898 $ 2,651  
    Secured by junior-lien   41,274   63,390   3,454     24,625   1,382  
  Total home equity $ 117,532 $ 144,221 $ 4,783   $ 79,523 $ 4,033  
                             
  Residential mortgage:                        
    Residential mortgage $ 374,526 $ 413,583 $ 14,176   $ 345,206 $ 11,420  
  Total residential mortgage $ 374,526 $ 413,583 $ 14,176   $ 345,206 $ 11,420  
                             
  Other consumer:                        
    Other consumer $ 2,657 $ 2,657 $ 213   $ 3,826 $ 126  
  Total other consumer $ 2,657 $ 2,657 $ 213   $ 3,826 $ 126  
                             
(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, 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. At December 31, 2012, $44,265 thousand of the $86,644 thousand C&I loans with an allowance recorded were considered impaired due to their status as a TDR.  
(4) 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. At December 31, 2012, $31,605 thousand of the $193,413 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, 2013, $49,225 thousand of the $390,435 thousand residential mortgage loans with an allowance recorded were guaranteed by the U.S. government. At December 31, 2012, $28,695 thousand of the $374,526 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 $43.9 million, $41.2 million, and $37.7 million for 2013, 2012, and 2011, respectively. The total amount of interest recorded to interest income for these loans was $35.7 million, $32.2 million, and $28.2 million for 2013, 2012, and 2011, 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, 2013 and 2012, 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, 2013 and 2012:

    New Troubled Debt Restructurings During The Year Ended(1)
    December 31, 2013   December 31, 2012
      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 22 $ 6,601 $ (466)   28 $ 10,501 $ 145
  Amortization or maturity date change 64   15,662   (12)   95   23,337   660
  Other 16   7,367   337   16   4,923   1,089
Total C&I - Owner occupied 102 $ 29,630 $ (141)   139 $ 38,761 $ 1,894
                         
C&I - Other commercial and industrial:(3)                      
  Interest rate reduction 26 $ 75,447 $ (1,040)   27 $ 7,436 $ (2)
  Amortization or maturity date change 120   53,340   1,295   141   76,814   (3,037)
  Other 35   18,290   (1,163)   32   37,202   1,265
Total C&I - Other commercial and industrial 181 $ 147,077 $ (908)   200 $ 121,452 $ (1,774)
                         
CRE - Retail properties:(3)                      
  Interest rate reduction 4 $ 1,116 $ (8)   9 $ 6,883 $ 957
  Amortization or maturity date change 21   27,550   4,159   15   4,472   (25)
  Other 12   19,842   (558)   3   1,680   (1)
Total CRE - Retail properties 37 $ 48,508 $ 3,593   27 $ 13,035 $ 931
                         
CRE - Multi family:(3)                      
  Interest rate reduction 10 $ 4,444 $ 7   11 $ 1,288 $ (27)
  Amortization or maturity date change 16   2,345   415   32   3,554   (1)
  Other 5   8,085   (2)   7   7,961   668
Total CRE - Multi family 31 $ 14,874 $ 420   50 $ 12,803 $ 640
                         
CRE - Office:(3)                      
  Interest rate reduction 7 $ 6,504 $ 1,656   4 $ 4,155 $ (236)
  Amortization or maturity date change 16   12,388   91   12   40,152   4,199
  Other 6   7,044   655   6   1,637   276
Total CRE - Office 29 $ 25,936 $ 2,402   22 $ 45,944 $ 4,239
                         
CRE - Industrial and warehouse:(3)                      
  Interest rate reduction 1 $ 2,682 $ (476)   3 $ 7,470 $ (296)
  Amortization or maturity date change 9   4,069   (185)   16   34,613   (3,857)
  Other 1   5,867   ---   1   1,047   (30)
Total CRE - Industrial and Warehouse 11 $ 12,618 $ (661)   20 $ 43,130 $ (4,183)
                         
CRE - Other commercial real estate:(3)                      
  Interest rate reduction 19 $ 10,996 $ 96   10 $ 2,944 $ (288)
  Amortization or maturity date change 21   17,851   4,923   48   80,672   4,090
  Other 13   9,735   (101)   6   10,030   (2,024)
Total CRE - Other commercial real estate 53 $ 38,582 $ 4,918   64 $ 93,646 $ 1,778
                         
Automobile:(3)                      
  Interest rate reduction 14 $ 106 $ ---   40 $ 368 $ 4
  Amortization or maturity date change 1,659   9,420   (76)   1,910   13,186   (103)
  Chapter 7 bankruptcy 1,313   7,748   301   2,104   12,423   1,866
  Other ---   ---   ---   ---   ---   ---
Total Automobile 2,986 $ 17,274 $ 225   4,054 $ 25,977 $ 1,767
                         
Residential mortgage:(3)                      
  Interest rate reduction 65 $ 11,662 $ 3   25 $ 8,795 $ (40)
  Amortization or maturity date change 442   58,344   384   482   65,336   1,394
  Chapter 7 bankruptcy 458   39,813   1,345   583   45,193   4,854
  Other 17   1,837   39   15   1,836   81
Total Residential mortgage 982 $ 111,656 $ 1,771   1,105 $ 121,160 $ 6,289
                         
First-lien home equity:(3)                      
  Interest rate reduction 134 $ 12,244 $ 1,149   222 $ 28,381 $ 4,424
  Amortization or maturity date change 279   19,280   (1,084)   130   10,468   (49)
  Chapter 7 bankruptcy 257   14,987   748   188   8,317   4,244
  Other ---   ---   ---   ---   ---   ---
Total First-lien home equity 670 $ 46,511 $ 813   540 $ 47,166 $ 8,619
                         
Junior-lien home equity:(3)                      
  Interest rate reduction 25 $ 1,179 $ 190   60 $ 3,023 $ 494
  Amortization or maturity date change 1,491   55,389   (5,431)   390   15,040   (432)
  Chapter 7 bankruptcy 1,564   15,303   33,623   1,241   13,347   18,564
  Other ---   ---   ---   7   288   ---
Total Junior-lien home equity 3,080 $ 71,871 $ 28,382   1,698 $ 31,698 $ 18,626
                         
Other consumer:(3)                      
  Interest rate reduction 5 $ 306 $ 48   14 $ 305 $ 32
  Amortization or maturity date change 11   117   5   27   2,150   (111)
  Chapter 7 bankruptcy 36   565   29   14   198   ---
  Other ---   ---   ---   ---   ---   ---
Total Other consumer 52 $ 988 $ 82   55 $ 2,653 $ (79)
Total new troubled debt restructurings 8,214 $ 565,525 $ 40,896   7,974 $ 597,425 $ 38,747
                         
(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.

The following table presents TDRs that have redefaulted within one year of modification during the years ended December 31, 2013 and 2012:

    Troubled Debt Restructurings That Have Redefaulted
    Within One Year of Modification During The Year Ended
    December 31, 2013(1) December 31, 2012(1)
(dollar amounts in thousands) Number of Ending Number of Ending
  Contracts Balance Contracts Balance
               
C&I - Owner occupied:            
  Interest rate reduction --- $ --- 4 $ 1,390
  Amortization or maturity date change 10   1,144 13   2,380
  Other 7   1,221 ---   ---
Total C&I - Owner occupied 17 $ 2,365 17 $ 3,770
               
C&I - Other commercial and industrial:            
  Interest rate reduction --- $ --- 3 $ 401
  Amortization or maturity date change 17   476 14   609
  Other ---   --- 3   387
Total C&I - Other commercial and industrial 17 $ 476 20 $ 1,397
               
CRE - Retail Properties:            
  Interest rate reduction 1 $ 302 --- $ ---
  Amortization or maturity date change 4   993 3   372
  Other 1   186 ---   ---
Total CRE - Retail properties 6 $ 1,481 3 $ 372
               
CRE - Multi family:            
  Interest rate reduction --- $ --- 2 $ 1,236
  Amortization or maturity date change 2   225 2   343
  Other ---   --- ---   ---
Total CRE - Multi family 2 $ 225 4 $ 1,579
               
CRE - Office:            
  Interest rate reduction --- $ --- --- $ ---
  Amortization or maturity date change 2   1,131 ---   ---
  Other ---   --- ---   ---
Total CRE - Office 2 $ 1,131 --- $ ---
               
CRE - Industrial and Warehouse:            
  Interest rate reduction --- $ --- --- $ ---
  Amortization or maturity date change 1   361 1   413
  Other 1   726 ---   ---
Total CRE - Industrial and Warehouse 2 $ 1,087 1 $ 413
               
CRE - Other commercial real estate:            
  Interest rate reduction --- $ --- 1 $ 898
  Amortization or maturity date change 4   774 4   646
  Other 1   5 ---   ---
Total CRE - Other commercial real estate 5 $ 779 5 $ 1,544
               
Automobile:            
  Interest rate reduction 1 $ 112 4 $ ---
  Amortization or maturity date change 37   380 132   69
  Chapter 7 bankruptcy 137   617 34   149
  Other ---   --- ---   ---
Total Automobile 175 $ 1,109 170 $ 218
               
Residential mortgage:            
  Interest rate reduction 4 $ 424 2 $ 61
  Amortization or maturity date change 78   11,263 100   13,574
  Chapter 7 bankruptcy 71   6,647 30   4,085
  Other 2   418 7   804
Total Residential mortgage 155 $ 18,752 139 $ 18,524
               
First-lien home equity:            
  Interest rate reduction 1 $ 87 11 $ 932
  Amortization or maturity date change 6   629 5   503
  Chapter 7 bankruptcy 16   1,235 2   124
  Other ---   --- ---   ---
Total First-lien home equity 23 $ 1,951 18 $ 1,559
               
Junior-lien home equity:            
  Interest rate reduction 1 $ --- 2 $ 112
  Amortization or maturity date change 9   478 3   99
  Chapter 7 bankruptcy 40   718 7   30
  Other ---   --- ---   ---
Total Junior-lien home equity 50 $ 1,196 12 $ 241
               
Other consumer:            
  Interest rate reduction --- $ --- 1 $ ---
  Amortization or maturity date change ---   --- 3   ---
  Chapter 7 bankruptcy 3   96 ---   ---
  Other ---   --- ---   ---
Total Other consumer 3 $ 96 4 $ ---
               
Total troubled debt restructurings with subsequent redefault 457 $ 30,648 393 $ 29,617
               
(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, 2013, these borrowings and advances are secured by $19.8 billion of loans.