| LOANS / LEASES AND ALLOWANCE FOR CREDIT LOSSES |
LOANS / LEASES AND ALLOWANCE FOR CREDIT LOSSES
Loans and leases which Huntington has the intent and ability to hold for the foreseeable future, or until maturity or payoff, are classified in the Unaudited Condensed Consolidated Balance Sheets as loans and leases. Except for loans which are accounted for at fair value, loans are carried at the principal amount outstanding, net of unamortized premiums and discounts and deferred loan fees and costs and purchase accounting adjustments, which resulted in a net premium of $295 million and $120 million at September 30, 2017 and December 31, 2016, respectively.
Loan and Lease Portfolio Composition
The following table provides a detailed listing of Huntington’s loan and lease portfolio at September 30, 2017 and December 31, 2016.
|
|
|
|
|
|
|
|
|
(dollar amounts in thousands) |
September 30,
2017 |
|
December 31,
2016 |
Loans and leases: |
|
|
|
Commercial and industrial |
$ |
27,469,344 |
|
|
$ |
28,058,712 |
|
Commercial real estate |
7,206,096 |
|
|
7,300,901 |
|
Automobile |
11,876,033 |
|
|
10,968,782 |
|
Home equity |
9,984,728 |
|
|
10,105,774 |
|
Residential mortgage |
8,616,059 |
|
|
7,724,961 |
|
RV and marine finance |
2,371,065 |
|
|
1,846,447 |
|
Other consumer |
1,063,971 |
|
|
956,419 |
|
Loans and leases |
68,587,296 |
|
|
66,961,996 |
|
Allowance for loan and lease losses |
(675,486 |
) |
|
(638,413 |
) |
Net loans and leases |
$ |
67,911,810 |
|
|
$ |
66,323,583 |
|
FirstMerit Purchased Credit-Impaired Loans
The following table presents a rollforward of the accretable yield for purchased credit impaired loans for the three-month and nine-month period ended September 30, 2017.
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
(dollar amounts in thousands) |
|
2017 |
|
2017 |
Balance, beginning of period |
|
$ |
36,509 |
|
|
$ |
36,669 |
|
Accretion |
|
(4,343 |
) |
|
(13,833 |
) |
Reclassification (to) from nonaccretable difference |
|
3,044 |
|
|
12,374 |
|
Balance, end of period |
|
$ |
35,210 |
|
|
$ |
35,210 |
|
The following table reflects the ending and unpaid balances of the purchase credit impaired loans at September 30, 2017 and December 31, 2016.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2017 |
|
December 31, 2016 |
(dollar amounts in thousands) |
|
Ending
Balance |
|
Unpaid Principal
Balance |
|
Ending
Balance |
|
Unpaid Principal
Balance |
Commercial and industrial |
|
$ |
48,606 |
|
|
$ |
72,117 |
|
|
$ |
68,338 |
|
|
$ |
100,031 |
|
Commercial real estate |
|
16,383 |
|
|
29,689 |
|
|
34,042 |
|
|
56,320 |
|
Total |
|
$ |
64,989 |
|
|
$ |
101,806 |
|
|
$ |
102,380 |
|
|
$ |
156,351 |
|
There was no allowance for loan losses recorded on the purchased credit-impaired loan portfolio at September 30, 2017 and December 31, 2016.
Nonaccrual and Past Due Loans
Loans are considered past due when the contractual amounts due with respect to principal and interest are not received within 30 days of the contractual due date. See Note 1 “Significant Accounting Policies” to the consolidated financial statements of the Annual Report on Form 10-K for the year ended December 31, 2016 for a description of the accounting policies related to the NALs.
The following table presents nonaccrual loans (NALs) by loan class at September 30, 2017 and December 31, 2016.
|
|
|
|
|
|
|
|
|
(dollar amounts in thousands) |
September 30,
2017 |
|
December 31,
2016 |
Commercial and industrial |
$ |
169,751 |
|
|
$ |
234,184 |
|
Commercial real estate |
17,397 |
|
|
20,508 |
|
Automobile |
4,076 |
|
|
5,766 |
|
Home equity |
71,353 |
|
|
71,798 |
|
Residential mortgage |
75,251 |
|
|
90,502 |
|
RV and marine finance |
309 |
|
|
245 |
|
Other consumer |
108 |
|
|
— |
|
Total nonaccrual loans |
$ |
338,245 |
|
|
$ |
423,003 |
|
The following table presents an aging analysis of loans and leases, including past due loans, by loan class at September 30, 2017 and December 31, 2016. (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2017 |
|
Past Due |
|
|
|
|
|
Loans Accounted for Under the Fair Value Option |
|
Total Loans
and Leases |
|
90 or
more days
past due
and accruing |
|
(dollar amounts in thousands) |
30-59
Days |
|
60-89
Days |
|
90 or
more days |
Total |
|
Current |
|
Purchased Credit
Impaired
|
|
|
|
|
Commercial and industrial |
$ |
36,505 |
|
|
$ |
10,654 |
|
|
$ |
77,835 |
|
|
$ |
124,994 |
|
|
$ |
27,295,744 |
|
|
$ |
48,606 |
|
|
$ |
— |
|
|
$ |
27,469,344 |
|
|
$ |
14,083 |
|
(2) |
Commercial real estate |
35,444 |
|
|
2,586 |
|
|
20,010 |
|
|
58,040 |
|
|
7,131,673 |
|
|
16,383 |
|
|
— |
|
|
7,206,096 |
|
|
9,550 |
|
|
Automobile |
79,457 |
|
|
17,167 |
|
|
10,449 |
|
|
107,073 |
|
|
11,767,782 |
|
|
— |
|
|
1,178 |
|
|
11,876,033 |
|
|
10,239 |
|
|
Home equity |
41,748 |
|
|
19,601 |
|
|
63,747 |
|
|
125,096 |
|
|
9,857,359 |
|
|
— |
|
|
2,273 |
|
|
9,984,728 |
|
|
16,150 |
|
|
Residential mortgage |
111,722 |
|
|
45,041 |
|
|
104,167 |
|
|
260,930 |
|
|
8,260,742 |
|
|
— |
|
|
94,387 |
|
|
8,616,059 |
|
|
62,832 |
|
(3) |
RV and marine finance |
10,303 |
|
|
2,184 |
|
|
2,134 |
|
|
14,621 |
|
|
2,355,309 |
|
|
— |
|
|
1,135 |
|
|
2,371,065 |
|
|
2,063 |
|
|
Other consumer |
10,180 |
|
|
4,394 |
|
|
3,752 |
|
|
18,326 |
|
|
1,045,427 |
|
|
— |
|
|
218 |
|
|
1,063,971 |
|
|
3,752 |
|
|
Total loans and leases |
$ |
325,359 |
|
|
$ |
101,627 |
|
|
$ |
282,094 |
|
|
$ |
709,080 |
|
|
$ |
67,714,036 |
|
|
$ |
64,989 |
|
|
$ |
99,191 |
|
|
$ |
68,587,296 |
|
|
$ |
118,669 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2016 |
|
Past Due |
|
|
|
|
|
Loans Accounted for Under the Fair Value Option |
|
Total Loans
and Leases |
|
90 or
more days
past due
and accruing |
|
(dollar amounts in thousands) |
30-59
Days |
|
60-89
Days |
|
90 or
more days |
Total |
|
Current |
|
Purchased
Credit Impaired |
|
|
|
|
Commercial and industrial |
42,052 |
|
|
20,136 |
|
|
74,174 |
|
|
136,362 |
|
|
27,854,012 |
|
|
68,338 |
|
|
— |
|
|
28,058,712 |
|
|
18,148 |
|
(2) |
Commercial real estate |
21,187 |
|
|
3,202 |
|
|
29,659 |
|
|
54,048 |
|
|
7,212,811 |
|
|
34,042 |
|
|
— |
|
|
7,300,901 |
|
|
17,215 |
|
|
Automobile |
76,283 |
|
|
17,188 |
|
|
10,442 |
|
|
103,913 |
|
|
10,862,715 |
|
|
— |
|
|
2,154 |
|
|
10,968,782 |
|
|
10,182 |
|
|
Home equity |
38,899 |
|
|
23,903 |
|
|
53,002 |
|
|
115,804 |
|
|
9,986,697 |
|
|
— |
|
|
3,273 |
|
|
10,105,774 |
|
|
11,508 |
|
|
Residential mortgage |
122,469 |
|
|
37,460 |
|
|
116,682 |
|
|
276,611 |
|
|
7,373,414 |
|
|
— |
|
|
74,936 |
|
|
7,724,961 |
|
|
66,952 |
|
(3) |
RV and marine finance |
10,009 |
|
|
2,230 |
|
|
1,566 |
|
|
13,805 |
|
|
1,831,123 |
|
|
— |
|
|
1,519 |
|
|
1,846,447 |
|
|
1,462 |
|
|
Other consumer |
9,442 |
|
|
4,324 |
|
|
3,894 |
|
|
17,660 |
|
|
938,322 |
|
|
— |
|
|
437 |
|
|
956,419 |
|
|
3,895 |
|
|
Total loans and leases |
$ |
320,341 |
|
|
$ |
108,443 |
|
|
$ |
289,419 |
|
|
$ |
718,203 |
|
|
$ |
66,059,094 |
|
|
$ |
102,380 |
|
|
$ |
82,319 |
|
|
$ |
66,961,996 |
|
|
$ |
129,362 |
|
|
|
|
(1) |
NALs are included in this aging analysis based on their past due status. |
|
|
(2) |
Amounts include Huntington Technology Finance administrative lease delinquencies. |
|
|
(3) |
Amounts include loans guaranteed by government organizations. |
Allowance for Credit Losses
Huntington maintains two reserves, both of which reflect Management’s judgment regarding the appropriate level necessary to absorb probable and estimable credit losses inherent in our loan and lease portfolio as of the balance sheet date: the ALLL and the AULC. Combined, these reserves comprise the total ACL. The determination of the ACL requires significant estimates, including the timing and amounts of expected future cash flows on impaired loans and leases, consideration of current economic conditions, and historical loss experience pertaining to pools of homogeneous loans and leases, all of which may be susceptible to change. See Note 1 “Significant Accounting Policies” to the consolidated financial statements of the Annual Report on Form 10-K for the year ended December 31, 2016 for a description of the accounting policies related to the ACL.
The ACL is increased through a provision for credit losses that is charged to earnings, based on Management’s quarterly evaluation and is reduced by charge-offs, net of recoveries, and the ACL associated with loans sold or transferred to held-for-sale.
The following table presents ALLL and AULC activity by portfolio segment for the three-month and nine-month periods ended September 30, 2017 and 2016.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollar amounts in thousands) |
|
Commercial |
|
Consumer |
|
Total |
Three-month period ended September 30, 2017: |
|
|
|
|
|
|
ALLL balance, beginning of period |
|
$ |
474,576 |
|
|
$ |
193,420 |
|
|
$ |
667,996 |
|
Loan charge-offs |
|
(19,278 |
) |
|
(45,494 |
) |
|
(64,772 |
) |
Recoveries of loans previously charged-off |
|
10,015 |
|
|
11,865 |
|
|
21,880 |
|
Provision for (reduction in allowance) loan and lease losses |
|
8,810 |
|
|
41,573 |
|
|
50,383 |
|
Allowance for loans sold or transferred to loans held for sale |
|
(1 |
) |
|
— |
|
|
(1 |
) |
ALLL balance, end of period |
|
$ |
474,122 |
|
|
$ |
201,364 |
|
|
$ |
675,486 |
|
AULC balance, beginning of period |
|
$ |
82,827 |
|
|
$ |
2,532 |
|
|
$ |
85,359 |
|
Provision for (reduction in allowance) unfunded loan commitments and letters of credit |
|
(6,528 |
) |
|
(265 |
) |
|
(6,793 |
) |
AULC balance, end of period |
|
$ |
76,299 |
|
|
$ |
2,267 |
|
|
$ |
78,566 |
|
ACL balance, end of period |
|
$ |
550,421 |
|
|
$ |
203,631 |
|
|
$ |
754,052 |
|
Nine-month period ended September 30, 2017: |
|
|
|
|
|
|
ALLL balance, beginning of period |
|
$ |
451,091 |
|
|
$ |
187,322 |
|
|
$ |
638,413 |
|
Loan charge-offs |
|
(58,051 |
) |
|
(133,884 |
) |
|
(191,935 |
) |
Recoveries of loans previously charged-off |
|
33,619 |
|
|
39,946 |
|
|
73,565 |
|
Provision for (reduction in allowance) loan and lease losses |
|
47,539 |
|
|
107,980 |
|
|
155,519 |
|
Allowance for loans sold or transferred to loans held for sale |
|
(76 |
) |
|
— |
|
|
(76 |
) |
ALLL balance, end of period |
|
$ |
474,122 |
|
|
$ |
201,364 |
|
|
$ |
675,486 |
|
AULC balance, beginning of period |
|
$ |
86,543 |
|
|
$ |
11,336 |
|
|
$ |
97,879 |
|
Provision for (reduction in allowance) unfunded loan commitments and letters of credit |
|
(10,244 |
) |
|
(9,069 |
) |
|
(19,313 |
) |
AULC balance, end of period |
|
$ |
76,299 |
|
|
$ |
2,267 |
|
|
$ |
78,566 |
|
ACL balance, end of period |
|
$ |
550,421 |
|
|
$ |
203,631 |
|
|
$ |
754,052 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollar amounts in thousands) |
|
Commercial |
|
Consumer |
|
Total |
Three-month period ended September 30, 2016: |
ALLL balance, beginning of period |
|
$ |
424,507 |
|
|
$ |
198,557 |
|
|
$ |
623,064 |
|
Loan charge-offs |
|
(24,839 |
) |
|
(34,429 |
) |
|
(59,268 |
) |
Recoveries of loans previously charged-off |
|
8,312 |
|
|
10,891 |
|
|
19,203 |
|
Provision for (reduction in allowance) loan and lease losses |
|
36,689 |
|
|
16,834 |
|
|
53,523 |
|
Allowance for loans sold or transferred to loans held for sale |
|
(12,874 |
) |
|
(6,750 |
) |
|
(19,624 |
) |
ALLL balance, end of period |
|
$ |
431,795 |
|
|
$ |
185,103 |
|
|
$ |
616,898 |
|
AULC balance, beginning of period |
|
$ |
63,717 |
|
|
$ |
10,031 |
|
|
$ |
73,748 |
|
Provision for (reduction in allowance) unfunded loan commitments and letters of credit |
|
9,739 |
|
|
543 |
|
|
10,282 |
|
AULC recorded at acquisition |
|
4,403 |
|
|
— |
|
|
4,403 |
|
AULC balance, end of period |
|
$ |
77,859 |
|
|
$ |
10,574 |
|
|
$ |
88,433 |
|
ACL balance, end of period |
|
$ |
509,654 |
|
|
$ |
195,677 |
|
|
$ |
705,331 |
|
Nine-month period ended September 30, 2016: |
ALLL balance, beginning of period |
|
$ |
398,753 |
|
|
$ |
199,090 |
|
|
$ |
597,843 |
|
Loan charge-offs |
|
(70,721 |
) |
|
(91,784 |
) |
|
(162,505 |
) |
Recoveries of loans previously charged-off |
|
62,127 |
|
|
35,006 |
|
|
97,133 |
|
Provision for (reduction in allowance) loan and lease losses |
|
54,510 |
|
|
49,437 |
|
|
103,947 |
|
Allowance for loans sold or transferred to loans held for sale |
|
(12,874 |
) |
|
(6,646 |
) |
|
(19,520 |
) |
ALLL balance, end of period |
|
$ |
431,795 |
|
|
$ |
185,103 |
|
|
$ |
616,898 |
|
AULC balance, beginning of period |
|
$ |
63,448 |
|
|
$ |
8,633 |
|
|
$ |
72,081 |
|
Provision for (reduction in allowance) unfunded loan commitments and letters of credit |
|
10,008 |
|
|
1,941 |
|
|
11,949 |
|
AULC recorded at acquisition |
|
4,403 |
|
|
— |
|
|
4,403 |
|
AULC balance, end of period |
|
$ |
77,859 |
|
|
$ |
10,574 |
|
|
$ |
88,433 |
|
ACL balance, end of period |
|
$ |
509,654 |
|
|
$ |
195,677 |
|
|
$ |
705,331 |
|
Credit Quality Indicators
See Note 4 “Loans / Leases and Allowance for Credit Losses” to the consolidated financial statements of the Annual Report on Form 10-K for the year ended December 31, 2016 for a description of the credit quality indicators Huntington utilizes for monitoring credit quality and for determining an appropriate ACL level.
The following table presents each loan and lease class by credit quality indicator at September 30, 2017 and December 31, 2016.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2017 |
|
Credit Risk Profile by UCS Classification |
(dollar amounts in thousands) |
Pass |
|
OLEM |
|
Substandard |
|
Doubtful |
|
Total |
Commercial |
|
|
|
|
|
|
|
|
|
Commercial and industrial |
$ |
25,447,805 |
|
|
$ |
803,540 |
|
|
$ |
1,189,789 |
|
|
$ |
28,210 |
|
|
$ |
27,469,344 |
|
Commercial real estate |
6,934,670 |
|
|
144,122 |
|
|
126,352 |
|
|
952 |
|
|
7,206,096 |
|
|
|
|
|
|
|
|
|
|
|
|
Credit Risk Profile by FICO Score (1), (2) |
|
750+ |
|
650-749 |
|
<650 |
|
Other (3) |
|
Total |
Consumer |
|
|
|
|
|
|
|
|
|
Automobile |
$ |
5,939,409 |
|
|
$ |
4,278,062 |
|
|
$ |
1,371,574 |
|
|
$ |
285,810 |
|
|
$ |
11,874,855 |
|
Home equity |
6,359,778 |
|
|
2,985,933 |
|
|
621,817 |
|
|
14,927 |
|
|
9,982,455 |
|
Residential mortgage |
5,311,993 |
|
|
2,479,820 |
|
|
599,055 |
|
|
130,804 |
|
|
8,521,672 |
|
RV and marine finance |
1,385,176 |
|
|
853,545 |
|
|
91,302 |
|
|
39,907 |
|
|
2,369,930 |
|
Other consumer |
404,047 |
|
|
510,804 |
|
|
136,346 |
|
|
12,556 |
|
|
1,063,753 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2016 |
|
Credit Risk Profile by UCS Classification |
(dollar amounts in thousands) |
Pass |
|
OLEM |
|
Substandard |
|
Doubtful |
|
Total |
Commercial |
|
|
|
|
|
|
|
|
|
Commercial and industrial |
$ |
26,211,885 |
|
|
$ |
810,287 |
|
|
$ |
1,028,819 |
|
|
$ |
7,721 |
|
|
$ |
28,058,712 |
|
Commercial real estate |
7,042,304 |
|
|
96,975 |
|
|
159,098 |
|
|
2,524 |
|
|
7,300,901 |
|
|
|
|
|
|
|
|
|
|
|
|
Credit Risk Profile by FICO Score (1), (2) |
|
750+ |
|
650-749 |
|
<650 |
|
Other (3) |
|
Total |
Consumer |
|
|
|
|
|
|
|
|
|
Automobile |
$ |
5,369,085 |
|
|
$ |
4,043,611 |
|
|
$ |
1,298,460 |
|
|
$ |
255,472 |
|
|
$ |
10,966,628 |
|
Home equity |
6,280,328 |
|
|
2,891,330 |
|
|
637,560 |
|
|
293,283 |
|
|
10,102,501 |
|
Residential mortgage |
4,662,777 |
|
|
2,285,121 |
|
|
615,067 |
|
|
87,060 |
|
|
7,650,025 |
|
RV and marine finance |
1,064,143 |
|
|
644,039 |
|
|
72,995 |
|
|
63,751 |
|
|
1,844,928 |
|
Other consumer |
346,867 |
|
|
455,959 |
|
|
133,243 |
|
|
19,913 |
|
|
955,982 |
|
|
|
(1) |
Excludes loans accounted for under the fair value option. |
|
|
(2) |
Reflects most recent customer credit scores. |
|
|
(3) |
Reflects deferred fees and costs, loans in process, loans to legal entities, etc. |
Impaired Loans
See Note 1 “Significant Accounting Policies” to the consolidated financial statements of the Annual Report on Form 10-K for the year ended December 31, 2016 for a description of accounting policies related to impaired loans.
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 at September 30, 2017 and December 31, 2016.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollar amounts in thousands) |
|
Commercial |
|
Consumer |
|
Total |
ALLL at September 30, 2017: |
|
|
|
|
|
|
Portion of ALLL balance: |
|
|
|
|
|
|
Purchased credit-impaired loans |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Attributable to loans individually evaluated for impairment |
|
22,838 |
|
|
13,874 |
|
|
36,712 |
|
Attributable to loans collectively evaluated for impairment |
|
451,284 |
|
|
187,490 |
|
|
638,774 |
|
Total ALLL balance |
|
$ |
474,122 |
|
|
$ |
201,364 |
|
|
$ |
675,486 |
|
Loan and Lease Ending Balances at September 30, 2017: (1) |
|
|
|
|
|
|
Portion of loan and lease ending balance: |
|
|
|
|
|
|
Purchased credit-impaired loans |
|
$ |
64,989 |
|
|
$ |
— |
|
|
$ |
64,989 |
|
Individually evaluated for impairment |
|
566,340 |
|
|
621,808 |
|
|
1,188,148 |
|
Collectively evaluated for impairment |
|
34,044,110 |
|
|
33,190,856 |
|
|
67,234,966 |
|
Total loans and leases evaluated for impairment |
|
$ |
34,675,439 |
|
|
$ |
33,812,664 |
|
|
$ |
68,488,103 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollar amounts in thousands) |
|
Commercial |
|
Consumer |
|
Total |
ALLL at December 31, 2016 |
|
|
|
|
|
|
Portion of ALLL balance: |
|
|
|
|
|
|
Purchased credit-impaired loans |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Attributable to loans individually evaluated for impairment |
|
$ |
10,525 |
|
|
$ |
11,021 |
|
|
$ |
21,546 |
|
Attributable to loans collectively evaluated for impairment |
|
440,566 |
|
|
176,301 |
|
|
616,867 |
|
Total ALLL balance: |
|
$ |
451,091 |
|
|
$ |
187,322 |
|
|
$ |
638,413 |
|
Loan and Lease Ending Balances at December 31, 2016 (1) |
|
|
|
|
|
|
Portion of loan and lease ending balances: |
|
|
|
|
|
|
Purchased credit-impaired loans |
|
$ |
102,380 |
|
|
$ |
— |
|
|
$ |
102,380 |
|
Individually evaluated for impairment |
|
415,624 |
|
|
457,890 |
|
|
873,514 |
|
Collectively evaluated for impairment |
|
34,841,609 |
|
|
31,062,174 |
|
|
65,903,783 |
|
Total loans and leases evaluated for impairment |
|
$ |
35,359,613 |
|
|
$ |
31,520,064 |
|
|
$ |
66,879,677 |
|
|
|
(1) |
Excludes loans accounted for under the fair value option. |
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 impaired loans and leases and purchased credit-impaired loans: (1), (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2017 |
|
Three Months Ended
September 30, 2017 |
|
Nine Months Ended
September 30, 2017 |
(dollar amounts in thousands) |
Ending
Balance
|
|
Unpaid
Principal
Balance (6)
|
|
Related
Allowance
|
|
Average
Balance
|
|
Interest
Income
Recognized
|
|
Average
Balance
|
|
Interest
Income
Recognized
|
With no related allowance recorded: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
$ |
299,349 |
|
|
$ |
324,474 |
|
|
$ |
— |
|
|
$ |
294,513 |
|
|
$ |
4,969 |
|
|
$ |
227,611 |
|
|
$ |
7,467 |
|
Commercial real estate |
65,382 |
|
|
92,215 |
|
|
— |
|
|
71,277 |
|
|
1,825 |
|
|
80,388 |
|
|
5,762 |
|
Automobile |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Home equity |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Residential mortgage |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
RV and marine finance |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Other consumer |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
With an allowance recorded: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
213,520 |
|
|
245,328 |
|
|
19,958 |
|
|
222,745 |
|
|
1,950 |
|
|
334,297 |
|
|
12,712 |
|
Commercial real estate |
53,078 |
|
|
60,366 |
|
|
2,880 |
|
|
40,672 |
|
|
468 |
|
|
54,352 |
|
|
1,388 |
|
Automobile |
33,049 |
|
|
33,049 |
|
|
1,683 |
|
|
32,740 |
|
|
496 |
|
|
32,293 |
|
|
1,576 |
|
Home equity |
335,763 |
|
|
367,870 |
|
|
14,486 |
|
|
330,784 |
|
|
3,713 |
|
|
326,932 |
|
|
11,639 |
|
Residential mortgage |
310,440 |
|
|
341,724 |
|
|
8,060 |
|
|
319,745 |
|
|
2,837 |
|
|
329,193 |
|
|
8,851 |
|
RV and marine finance |
1,520 |
|
|
1,520 |
|
|
88 |
|
|
1,425 |
|
|
23 |
|
|
884 |
|
|
58 |
|
Other consumer |
6,456 |
|
|
6,456 |
|
|
1,288 |
|
|
6,944 |
|
|
47 |
|
|
7,117 |
|
|
184 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial (3) |
512,869 |
|
|
569,802 |
|
|
19,958 |
|
|
517,258 |
|
|
6,919 |
|
|
561,908 |
|
|
20,179 |
|
Commercial real estate (4) |
118,460 |
|
|
152,581 |
|
|
2,880 |
|
|
111,949 |
|
|
2,293 |
|
|
134,740 |
|
|
7,150 |
|
Automobile (2) |
33,049 |
|
|
33,049 |
|
|
1,683 |
|
|
32,740 |
|
|
496 |
|
|
32,293 |
|
|
1,576 |
|
Home equity (5) |
335,763 |
|
|
367,870 |
|
|
14,486 |
|
|
330,784 |
|
|
3,713 |
|
|
326,932 |
|
|
11,639 |
|
Residential mortgage (5) |
310,440 |
|
|
341,724 |
|
|
8,060 |
|
|
319,745 |
|
|
2,837 |
|
|
329,193 |
|
|
8,851 |
|
RV and marine finance (2) |
1,520 |
|
|
1,520 |
|
|
88 |
|
|
1,425 |
|
|
23 |
|
|
884 |
|
|
58 |
|
Other consumer (2) |
6,456 |
|
|
6,456 |
|
|
1,288 |
|
|
6,944 |
|
|
47 |
|
|
7,117 |
|
|
184 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2016 |
|
Three Months Ended
September 30, 2016 |
|
Nine Months Ended
September 30, 2016 |
(dollar amounts in thousands) |
Ending
Balance
|
|
Unpaid
Principal
Balance (6)
|
|
Related
Allowance
|
|
Average
Balance
|
|
Interest
Income
Recognized
|
|
Average
Balance
|
|
Interest
Income
Recognized
|
With no related allowance recorded: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
$ |
299,606 |
|
|
$ |
358,712 |
|
|
$ |
— |
|
|
$ |
305,956 |
|
|
$ |
2,235 |
|
|
$ |
290,163 |
|
|
$ |
4,858 |
|
Commercial real estate |
88,817 |
|
|
126,152 |
|
|
— |
|
|
80,000 |
|
|
907 |
|
|
58,666 |
|
|
2,257 |
|
Automobile |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Home equity |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Residential mortgage |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
RV and marine finance |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Other consumer |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
With an allowance recorded: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
406,243 |
|
|
448,121 |
|
|
22,259 |
|
|
281,934 |
|
|
1,631 |
|
|
274,262 |
|
|
5,460 |
|
Commercial real estate |
97,238 |
|
|
107,512 |
|
|
3,434 |
|
|
49,140 |
|
|
521 |
|
|
49,587 |
|
|
1,895 |
|
Automobile |
30,961 |
|
|
31,298 |
|
|
1,850 |
|
|
31,540 |
|
|
541 |
|
|
31,912 |
|
|
1,643 |
|
Home equity |
319,404 |
|
|
352,722 |
|
|
15,032 |
|
|
284,512 |
|
|
3,453 |
|
|
267,264 |
|
|
9,382 |
|
Residential mortgage |
327,753 |
|
|
363,099 |
|
|
12,849 |
|
|
344,237 |
|
|
2,978 |
|
|
353,259 |
|
|
9,041 |
|
RV and marine finance |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Other consumer |
3,897 |
|
|
3,897 |
|
|
260 |
|
|
4,454 |
|
|
58 |
|
|
4,627 |
|
|
178 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial (3) |
705,849 |
|
|
806,833 |
|
|
22,259 |
|
|
587,890 |
|
|
3,866 |
|
|
564,425 |
|
|
10,318 |
|
Commercial real estate (4) |
186,055 |
|
|
233,664 |
|
|
3,434 |
|
|
129,140 |
|
|
1,428 |
|
|
108,253 |
|
|
4,152 |
|
Automobile (2) |
30,961 |
|
|
31,298 |
|
|
1,850 |
|
|
31,540 |
|
|
541 |
|
|
31,912 |
|
|
1,643 |
|
Home equity (5) |
319,404 |
|
|
352,722 |
|
|
15,032 |
|
|
284,512 |
|
|
3,453 |
|
|
267,264 |
|
|
9,382 |
|
Residential mortgage (5) |
327,753 |
|
|
363,099 |
|
|
12,849 |
|
|
344,237 |
|
|
2,978 |
|
|
353,259 |
|
|
9,041 |
|
RV and marine finance (2) |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Other consumer (2) |
3,897 |
|
|
3,897 |
|
|
260 |
|
|
4,454 |
|
|
58 |
|
|
4,627 |
|
|
178 |
|
|
|
(1) |
These tables do not include loans fully charged-off. |
|
|
(2) |
All automobile, RV and marine finance and other consumer impaired loans included in these tables are considered impaired due to their status as a TDR. |
|
|
(3) |
At September 30, 2017 and December 31, 2016, commercial and industrial loans of $365 million and $317 million, respectively, were considered impaired due to their status as a TDR.
|
|
|
(4) |
At September 30, 2017 and December 31, 2016, commercial real estate loans of $84 million and $81 million, respectively, were considered impaired due to their status as a TDR.
|
|
|
(5) |
Includes home equity and residential mortgages considered to be collateral dependent due to their non-accrual status as well as home equity and mortgage loans considered impaired due to their status as a TDR. |
|
|
(6) |
The differences between the ending balance and unpaid principal balance amounts represent partial charge-offs. |
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. Acquired, non-purchased credit impaired loans are only considered for TDR reporting for modifications made subsequent to acquisition. See Note 4 “Loans / Leases and Allowance for Credit Losses” to the consolidated financial statements of the Annual Report on Form 10-K for the year ended December 31, 2016 for an additional discussion of TDRs.
The following table presents, by class and modification type, the number of contracts, post-modification outstanding balance, and the financial effects of the modification for the three-month and nine-month periods ended September 30, 2017 and 2016.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Troubled Debt Restructurings During The Three-Month Period Ended (1) |
|
September 30, 2017 |
|
September 30, 2016 |
(dollar amounts in thousands) |
Number of
Contracts
|
|
Post-modification
Outstanding
Ending Balance
|
|
Financial effects
of modification (2)
|
|
Number of
Contracts
|
|
Post-modification
Outstanding
Ending Balance
|
|
Financial effects
of modification (2)
|
Commercial and industrial: |
|
|
|
|
|
|
|
|
|
|
|
Interest rate reduction |
6 |
|
|
$ |
817 |
|
|
$ |
— |
|
|
2 |
|
|
$ |
122 |
|
|
$ |
6 |
|
Amortization or maturity date change |
271 |
|
|
138,381 |
|
|
(837 |
) |
|
246 |
|
|
89,100 |
|
|
(1,450 |
) |
Other |
— |
|
|
— |
|
|
— |
|
|
6 |
|
|
711 |
|
|
(2 |
) |
Total Commercial and industrial |
277 |
|
|
139,198 |
|
|
(837 |
) |
|
254 |
|
|
89,933 |
|
|
(1,446 |
) |
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
Interest rate reduction |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Amortization or maturity date change |
28 |
|
|
17,811 |
|
|
133 |
|
|
30 |
|
|
11,183 |
|
|
(546 |
) |
Other |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Total commercial real estate: |
28 |
|
|
17,811 |
|
|
133 |
|
|
30 |
|
|
11,183 |
|
|
(546 |
) |
Automobile: |
|
|
|
|
|
|
|
|
|
|
|
Interest rate reduction |
5 |
|
|
72 |
|
|
3 |
|
|
4 |
|
|
26 |
|
|
3 |
|
Amortization or maturity date change |
487 |
|
|
3,943 |
|
|
124 |
|
|
452 |
|
|
4,438 |
|
|
559 |
|
Chapter 7 bankruptcy |
305 |
|
|
2,562 |
|
|
69 |
|
|
236 |
|
|
1,840 |
|
|
157 |
|
Other |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Total Automobile |
797 |
|
|
6,577 |
|
|
196 |
|
|
692 |
|
|
6,304 |
|
|
719 |
|
Home equity: |
|
|
|
|
|
|
|
|
|
|
|
Interest rate reduction |
8 |
|
|
376 |
|
|
11 |
|
|
14 |
|
|
352 |
|
|
10 |
|
Amortization or maturity date change |
160 |
|
|
11,676 |
|
|
(1,131 |
) |
|
110 |
|
|
6,740 |
|
|
(574 |
) |
Chapter 7 bankruptcy |
79 |
|
|
2,728 |
|
|
647 |
|
|
70 |
|
|
2,395 |
|
|
1,327 |
|
Other |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Total Home equity |
247 |
|
|
14,780 |
|
|
(473 |
) |
|
194 |
|
|
9,487 |
|
|
763 |
|
Residential mortgage: |
|
|
|
|
|
|
|
|
|
|
|
Interest rate reduction |
— |
|
|
— |
|
|
— |
|
|
2 |
|
|
134 |
|
|
(2 |
) |
Amortization or maturity date change |
102 |
|
|
11,282 |
|
|
(272 |
) |
|
77 |
|
|
7,988 |
|
|
(220 |
) |
Chapter 7 bankruptcy |
20 |
|
|
1,656 |
|
|
(2 |
) |
|
17 |
|
|
1,105 |
|
|
(63 |
) |
Other |
1 |
|
|
64 |
|
|
2 |
|
|
3 |
|
|
260 |
|
|
— |
|
Total Residential mortgage |
123 |
|
|
13,002 |
|
|
(272 |
) |
|
99 |
|
|
9,487 |
|
|
(285 |
) |
RV and marine finance: |
|
|
|
|
|
|
|
|
|
|
|
Interest rate reduction |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Amortization or maturity date change |
10 |
|
|
84 |
|
|
3 |
|
|
— |
|
|
— |
|
|
— |
|
Chapter 7 bankruptcy |
22 |
|
|
492 |
|
|
15 |
|
|
— |
|
|
— |
|
|
— |
|
Other |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Total RV and marine finance |
32 |
|
|
576 |
|
|
18 |
|
|
— |
|
|
— |
|
|
— |
|
Other consumer: |
|
|
|
|
|
|
|
|
|
|
|
Interest rate reduction |
18 |
|
|
52 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Amortization or maturity date change |
677 |
|
|
3,106 |
|
|
1 |
|
|
1 |
|
|
16 |
|
|
— |
|
Chapter 7 bankruptcy |
4 |
|
|
24 |
|
|
1 |
|
|
1 |
|
|
6 |
|
|
— |
|
Other |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Total Other consumer |
699 |
|
|
3,182 |
|
|
2 |
|
|
2 |
|
|
22 |
|
|
— |
|
Total new troubled debt restructurings |
2,203 |
|
|
$ |
195,126 |
|
|
$ |
(1,233 |
) |
|
1,271 |
|
|
$ |
126,416 |
|
|
$ |
(795 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Troubled Debt Restructurings During The Nine-Month Period Ended (1) |
|
September 30, 2017 |
|
September 30, 2016 |
(dollar amounts in thousands) |
Number of
Contracts
|
|
Post-modification
Outstanding
Ending Balance
|
|
Financial effects
of modification (2)
|
|
Number of
Contracts
|
|
Post-modification
Outstanding
Ending Balance
|
|
Financial effects
of modification (2)
|
Commercial and industrial: |
|
|
|
|
|
|
|
|
|
|
|
Interest rate reduction |
8 |
|
|
$ |
854 |
|
|
$ |
6 |
|
|
4 |
|
|
$ |
161 |
|
|
$ |
5 |
|
Amortization or maturity date change |
735 |
|
|
418,924 |
|
|
(8,695 |
) |
|
629 |
|
|
345,691 |
|
|
(4,368 |
) |
Other |
4 |
|
|
380 |
|
|
(27 |
) |
|
16 |
|
|
1,801 |
|
|
(4 |
) |
Total Commercial and industrial |
747 |
|
|
420,158 |
|
|
(8,716 |
) |
|
649 |
|
|
347,653 |
|
|
(4,367 |
) |
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
Interest rate reduction |
— |
|
|
— |
|
|
— |
|
|
1 |
|
|
84 |
|
|
— |
|
Amortization or maturity date change |
71 |
|
|
74,101 |
|
|
(682 |
) |
|
90 |
|
|
60,995 |
|
|
(1,828 |
) |
Other |
— |
|
|
— |
|
|
— |
|
|
4 |
|
|
315 |
|
|
16 |
|
Total commercial real estate: |
71 |
|
|
74,101 |
|
|
(682 |
) |
|
95 |
|
|
61,394 |
|
|
(1,812 |
) |
Automobile: |
|
|
|
|
|
|
|
|
|
|
|
Interest rate reduction |
24 |
|
|
308 |
|
|
9 |
|
|
11 |
|
|
132 |
|
|
10 |
|
Amortization or maturity date change |
1,298 |
|
|
11,097 |
|
|
302 |
|
|
1,159 |
|
|
11,002 |
|
|
981 |
|
Chapter 7 bankruptcy |
743 |
|
|
5,878 |
|
|
116 |
|
|
797 |
|
|
6,384 |
|
|
386 |
|
Other |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Total Automobile |
2,065 |
|
|
17,283 |
|
|
427 |
|
|
1,967 |
|
|
17,518 |
|
|
1,377 |
|
Home equity: |
|
|
|
|
|
|
|
|
|
|
|
Interest rate reduction |
25 |
|
|
1,444 |
|
|
24 |
|
|
43 |
|
|
2,363 |
|
|
103 |
|
Amortization or maturity date change |
401 |
|
|
25,544 |
|
|
(2,559 |
) |
|
466 |
|
|
25,031 |
|
|
(2,592 |
) |
Chapter 7 bankruptcy |
243 |
|
|
8,764 |
|
|
2,049 |
|
|
215 |
|
|
8,106 |
|
|
2,327 |
|
Other |
70 |
|
|
4,241 |
|
|
(326 |
) |
|
— |
|
|
— |
|
|
— |
|
Total Home equity |
739 |
|
|
39,993 |
|
|
(812 |
) |
|
724 |
|
|
35,500 |
|
|
(162 |
) |
Residential mortgage: |
|
|
|
|
|
|
|
|
|
|
|
Interest rate reduction |
2 |
|
|
110 |
|
|
(9 |
) |
|
12 |
|
|
1,195 |
|
|
(17 |
) |
Amortization or maturity date change |
282 |
|
|
30,649 |
|
|
(761 |
) |
|
277 |
|
|
29,388 |
|
|
(1,217 |
) |
Chapter 7 bankruptcy |
69 |
|
|
6,328 |
|
|
(139 |
) |
|
40 |
|
|
3,788 |
|
|
(42 |
) |
Other |
22 |
|
|
2,448 |
|
|
19 |
|
|
4 |
|
|
424 |
|
|
— |
|
Total Residential mortgage |
375 |
|
|
39,535 |
|
|
(890 |
) |
|
333 |
|
|
34,795 |
|
|
(1,276 |
) |
RV and marine finance: |
|
|
|
|
|
|
|
|
|
|
|
Interest rate reduction |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Amortization or maturity date change |
34 |
|
|
710 |
|
|
19 |
|
|
— |
|
|
— |
|
|
— |
|
Chapter 7 bankruptcy |
71 |
|
|
1,246 |
|
|
25 |
|
|
— |
|
|
— |
|
|
— |
|
Other |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Total RV and marine finance |
105 |
|
|
1,956 |
|
|
44 |
|
|
— |
|
|
— |
|
|
— |
|
Other consumer: |
|
|
|
|
|
|
|
|
|
|
|
Interest rate reduction |
19 |
|
|
130 |
|
|
2 |
|
|
— |
|
|
— |
|
|
— |
|
Amortization or maturity date change |
681 |
|
|
3,394 |
|
|
8 |
|
|
6 |
|
|
575 |
|
|
24 |
|
Chapter 7 bankruptcy |
7 |
|
|
36 |
|
|
1 |
|
|
8 |
|
|
72 |
|
|
7 |
|
Other |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Total Other consumer |
707 |
|
|
3,560 |
|
|
11 |
|
|
14 |
|
|
647 |
|
|
31 |
|
Total new troubled debt restructurings |
4,809 |
|
|
$ |
596,586 |
|
|
$ |
(10,618 |
) |
|
3,782 |
|
|
$ |
497,507 |
|
|
$ |
(6,209 |
) |
|
|
(1) |
TDRs may include multiple concessions and the disclosure classifications are based on the primary concession provided to the borrower. |
|
|
(2) |
Amount represents the financial impact via provision for loan and lease losses as a result of the modification. |
Pledged Loans and Leases
At September 30, 2017, the Bank has access to the Federal Reserve’s discount window and advances from the FHLB – Cincinnati. As of September 30, 2017, these borrowings and advances are secured by $32.0 billion of loans and securities.
|