| LOANS / LEASES AND ALLOWANCE FOR CREDIT LOSSES | LOANS / 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 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, which resulted in a net premium of $270 million and $262 million at June 30, 2016 and December 31, 2015 , respectively. Loan and Lease Portfolio Composition The following table provides a detailed listing of Huntington’s loan and lease portfolio at June 30, 2016 and December 31, 2015 : (dollar amounts in thousands) June 30, December 31, Loans and leases: Commercial and industrial $ 21,372,474 $ 20,559,834 Commercial real estate 5,322,068 5,268,651 Automobile 10,380,644 9,480,678 Home equity 8,447,066 8,470,482 Residential mortgage 6,377,017 5,998,400 Other consumer 644,152 563,054 Loans and leases 52,543,421 50,341,099 Allowance for loan and lease losses (623,064 ) (597,843 ) Net loans and leases $ 51,920,357 $ 49,743,256 As shown in the table above, the primary loan and lease portfolios are: C&I, CRE, automobile, home equity, residential mortgage, and other consumer. For ACL purposes, these portfolios are further disaggregated into classes. The classes within each portfolio are as follows: 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. Loan Purchases and Sales The following table summarizes significant portfolio loan purchase and sale activity for the three-month and six-month periods ended June 30, 2016 and 2015 . The table below excludes mortgage loans originated for sale. (dollar amounts in thousands) Commercial Commercial Automobile Home Residential Other Total Portfolio loans and leases purchased or transferred from held for sale during the: Three-month period ended June 30, 2016 $ 35,198 $ — $ — $ — $ 1,669 $ — $ 36,867 Six-month period ended June 30, 2016 $ 338,172 $ — $ — $ — $ 3,813 $ — $ 341,985 Three-month period ended June 30, 2015 31,905 — — — 2,754 $ — 34,659 Six-month period ended June 30, 2015 44,496 — — — 6,637 — 51,133 Portfolio loans and leases sold or transferred to loans held for sale during the: Three-month period ended June 30, 2016 $ 96,278 $ — $ — $ — $ — $ — $ 96,278 Six-month period ended June 30, 2016 $ 240,797 $ — $ — $ — $ — $ — $ 240,797 Three-month period ended June 30, 2015 100,202 — — — — — 100,202 Six-month period ended June 30, 2015 185,902 — 764,540 (1) — — — 950,442 (1) Reflects the transfer of approximately $1.0 billion automobile loans to loans held-for-sale at March 31, 2015, net of approximately $262 million of automobile loans transferred back to loans and leases in the 2015 second quarter. NALs 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. Any loan in any portfolio may be placed on nonaccrual status prior to the policies described below when collection of principal or interest is in doubt. When a borrower with debt is discharged in a Chapter 7 bankruptcy and not reaffirmed by the borrower, the loan is determined to be collateral dependent and placed on nonaccrual status. All classes within the C&I and CRE portfolios (except for purchased credit-impaired loans) are placed on nonaccrual status at 90 -days past due. Residential mortgage loans are placed on nonaccrual status at 150 -days past due, with the exception of residential mortgages guaranteed by government organizations. First-lien home equity loans are placed on nonaccrual status at 150 -days past due. Junior-lien home equity loans are placed on nonaccrual status at the earlier of 120 -days past due or when the related first-lien loan has been identified as nonaccrual. Automobile and other consumer loans are generally charged-off when the loan is 120 -days past due. For all classes within all loan portfolios, when a loan is placed on nonaccrual status, any accrued interest income is reversed with current year accruals charged to interest income, and prior year amounts are recognized as a credit loss. For all classes within all loan portfolios, cash receipts received on NALs are applied entirely against principal until the loan or lease has been collected in full, after which time any additional cash receipts are recognized as interest income. However, for secured non-reaffirmed debt in a Chapter 7 bankruptcy, payments are applied to principal and interest when the borrower has demonstrated a capacity to continue payment of the debt and collection of the debt is reasonably assured. For unsecured non-reaffirmed debt in a Chapter 7 bankruptcy where the carrying value has been fully charged-off, payments are recorded as loan recoveries. Regarding all classes within the C&I and CRE portfolios, the determination of a borrower’s ability to make the required principal and interest payments is based on an examination of the borrower’s current financial statements, industry, management capabilities, and other qualitative measures. For all classes within the consumer loan portfolio, the determination of a borrower’s ability to make the required principal and interest payments is based on multiple factors, including number of days past due and, in some instances, an evaluation of the borrower’s financial condition. When, in Management’s judgment, the borrower’s ability to make required principal and interest payments resumes and collectability is no longer in doubt, supported by sustained repayment history, the loan or lease is returned to accrual status. For these loans that have been returned to accrual status, cash receipts are applied according to the contractual terms of the loan. The following table presents NALs by loan class at June 30, 2016 and December 31, 2015 : (dollar amounts in thousands) June 30, December 31, Commercial and industrial: Owner occupied $ 27,624 $ 35,481 Other commercial and industrial 262,187 139,714 Total commercial and industrial 289,811 175,195 Commercial real estate: Retail properties 2,345 7,217 Multi-family 5,819 5,819 Office 10,742 10,495 Industrial and warehouse 1,864 2,202 Other commercial real estate 2,893 3,251 Total commercial real estate 23,663 28,984 Automobile 5,049 6,564 Home equity: Secured by first-lien 33,279 35,389 Secured by junior-lien 23,566 30,889 Total home equity 56,845 66,278 Residential mortgage 85,174 94,560 Other consumer 5 — Total nonaccrual loans $ 460,547 $ 371,581 The following table presents an aging analysis of loans and leases, including past due loans, by loan class at June 30, 2016 and December 31, 2015 : (1) June 30, 2016 Past Due Total Loans 90 or more (dollar amounts in thousands) 30-59 Days 60-89 Days 90 or more days Total Current Commercial and industrial: Owner occupied $ 3,143 $ 3,336 $ 10,779 $ 17,258 $ 3,934,039 $ 3,951,297 $ — Purchased credit-impaired 178 172 3,750 4,100 5,076 9,176 3,750 (2) Other commercial and industrial 16,936 7,229 44,420 68,585 17,343,416 17,412,001 1,866 (3) Total commercial and industrial 20,257 10,737 58,949 89,943 21,282,531 21,372,474 5,616 Commercial real estate: Retail properties 86 199 810 1,095 1,600,914 1,602,009 — Multi-family 507 802 1,892 3,201 999,638 1,002,839 — Office — 40 10,519 10,559 845,284 855,843 — Industrial and warehouse 156 324 894 1,374 490,912 492,286 — Purchased credit-impaired — 335 10,799 11,134 5,939 17,073 10,799 (2) Other commercial real estate 351 620 1,713 2,684 1,349,334 1,352,018 — Total commercial real estate 1,100 2,320 26,627 30,047 5,292,021 5,322,068 10,799 Automobile 61,988 13,900 5,589 81,477 10,299,167 10,380,644 5,452 Home equity: Secured by first-lien 12,311 7,008 24,565 43,884 5,198,668 5,242,552 4,775 Secured by junior-lien 15,514 6,844 21,261 43,619 3,160,895 3,204,514 2,804 Total home equity 27,825 13,852 45,826 87,503 8,359,563 8,447,066 7,579 Residential mortgage: Residential mortgage 86,760 35,127 110,859 232,746 6,143,167 6,375,913 67,488 (4) Purchased credit-impaired — — — — 1,104 1,104 — Total residential mortgage 86,760 35,127 110,859 232,746 6,144,271 6,377,017 67,488 Other consumer: Other consumer 7,323 2,377 1,645 11,345 632,807 644,152 1,645 Purchased credit-impaired — — — — — — — Total other consumer 7,323 2,377 1,645 11,345 632,807 644,152 1,645 Total loans and leases $ 205,253 $ 78,313 $ 249,495 $ 533,061 $ 52,010,360 $ 52,543,421 $ 98,579 December 31, 2015 Past Due Total Loans 90 or more (dollar amounts in thousands) 30-59 Days 60-89 Days 90 or more days Total Current Commercial and industrial: Owner occupied $ 11,947 $ 3,613 $ 13,793 $ 29,353 $ 3,983,447 $ 4,012,800 $ — Purchased credit-impaired 292 1,436 5,949 7,677 13,340 21,017 5,949 (2) Other commercial and industrial 32,476 8,531 27,236 68,243 16,457,774 16,526,017 2,775 (3) Total commercial and industrial 44,715 13,580 46,978 105,273 20,454,561 20,559,834 8,724 Commercial real estate: Retail properties 1,823 195 3,637 5,655 1,501,054 1,506,709 — Multi family 961 1,137 2,691 4,789 1,073,429 1,078,218 — Office 5,022 256 3,016 8,294 886,331 894,625 — Industrial and warehouse 93 — 373 466 503,701 504,167 — Purchased credit-impaired 102 3,818 9,549 13,469 289 13,758 9,549 (2) Other commercial real estate 1,231 315 2,400 3,946 1,267,228 1,271,174 — Total commercial real estate 9,232 5,721 21,666 36,619 5,232,032 5,268,651 9,549 Automobile 69,553 14,965 7,346 91,864 9,388,814 9,480,678 7,162 Home equity Secured by first-lien 18,349 7,576 26,304 52,229 5,139,256 5,191,485 4,499 Secured by junior-lien 18,128 9,329 29,996 57,453 3,221,544 3,278,997 4,545 Total home equity 36,477 16,905 56,300 109,682 8,360,800 8,470,482 9,044 Residential mortgage Residential mortgage 102,670 34,298 119,354 256,322 5,740,624 5,996,946 69,917 (5) Purchased credit-impaired 103 — — 103 1,351 1,454 — Total residential mortgage 102,773 34,298 119,354 256,425 5,741,975 5,998,400 69,917 Other consumer Other consumer 6,469 1,852 1,395 9,716 553,286 563,002 1,394 Purchased credit-impaired — — — — 52 52 — Total other consumer 6,469 1,852 1,395 9,716 553,338 563,054 1,394 Total loans and leases $ 269,219 $ 87,321 $ 253,039 $ 609,579 $ 49,731,520 $ 50,341,099 $ 105,790 (1) NALs are included in this aging analysis based on the loan’s past due status. (2) Amounts represent accruing purchased impaired loans related to acquisitions. Under the applicable accounting guidance (ASC 310-30), the loans were recorded at fair value upon acquisition and remain in accruing status. (3) Amounts include Huntington Technology Finance administrative lease delinquencies. (4) Includes $56 million guaranteed by the U.S. government. (5) Includes $56 million guaranteed by the U.S. government. Allowance for Credit Losses Huntington maintains two reserves, both of which reflect Management’s judgment regarding the appropriate level necessary to absorb credit losses inherent in our loan and lease portfolio: 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. The appropriateness of the ACL is based on Management’s current judgments about the credit quality of the loan portfolio. These judgments consider on-going evaluations of the loan and lease portfolio, including such factors as the differing economic risks associated with each loan category, the financial condition of specific borrowers, the level of delinquent loans, the value of any collateral and, where applicable, the existence of any guarantees or other documented support. Further, Management evaluates the impact of changes in interest rates and overall economic conditions on the ability of borrowers to meet their financial obligations when quantifying our exposure to credit losses and assessing the appropriateness of our ACL at each reporting date. In addition to general economic conditions and the other factors described above, additional factors also considered include: the impact of increasing or decreasing residential real estate values; the diversification of CRE loans; the development of new or expanded Commercial business segments such as healthcare, ABL, and energy, and the overall condition of the manufacturing industry. Management’s determinations regarding the appropriateness of the ACL are reviewed and approved by the Company’s board of directors. The ALLL consists of two components: (1) the transaction reserve, which includes a loan level allocation, specific reserves related to loans considered to be impaired, and loans involved in troubled debt restructurings, and (2) the general reserve. The transaction reserve component includes both (1) an estimate of loss based on pools of commercial and consumer loans and leases with similar characteristics, and (2) an estimate of loss based on an impairment review of each impaired C&I and CRE loan where obligor balance is greater than $1 million . For the C&I and CRE portfolios, the estimate of loss based on pools of loans and leases with similar characteristics is made by applying a PD factor and a LGD factor to each individual loan based on a regularly updated loan grade, using a standardized loan grading system. The PD factor and an LGD factor are determined for each loan grade using statistical models based on historical performance data. The PD factor considers on-going reviews of the financial performance of the specific borrower, including cash flow, debt-service coverage ratio, earnings power, debt level, and equity position, in conjunction with an assessment of the borrower’s industry and future prospects. The LGD factor considers analysis of the type of collateral and the relative LTV ratio. These reserve factors are developed and updated periodically based on credit migration models that track historical movements of loans between loan ratings over time and a combination of long-term average loss experience of our own portfolio and external industry data. In the case of other homogeneous portfolios, such as automobile loans, home equity loans, and residential mortgage loans, the determination of the transaction reserve also incorporates PD and LGD factors. The estimate of loss is based on pools of loans and leases with similar characteristics. The PD factor considers current credit scores unless the account is delinquent, in which case a higher PD factor is used. The credit score provides a basis for understanding the borrower’s past and current payment performance, and this information is used to estimate expected losses over the emergence period. The performance of first-lien loans ahead of our junior-lien loans is available to use as part of our updated score process. The LGD factor considers analysis of the type of collateral and the relative LTV ratio. Credit scores, models, analyses, and other factors used to determine both the PD and LGD factors are updated frequently to capture the recent behavioral characteristics of the subject portfolios, as well as any changes in loss mitigation or credit origination strategies, and adjustments to the reserve factors are made as required. The general reserve consists of our risk-profile reserve components, which includes items unique to our structure, policies, processes, and portfolio composition, as well as qualitative measurements and assessments of the loan portfolios including, but not limited to, management quality, concentrations, portfolio composition, industry comparisons, and internal review functions. The estimate for the AULC is determined using the same procedures and methodologies as used for the ALLL. The loss factors used in the AULC are the same as the loss factors used in the ALLL while also considering a historical utilization of unused commitments. The AULC is reflected in accrued expenses and other liabilities in the Unaudited Condensed Consolidated Balance Sheet. The ACL is increased through a provision for credit losses that is charged to earnings, based on Management’s quarterly evaluation of the factors previously mentioned, and is reduced by charge-offs, net of recoveries, and the ACL associated with securitized or sold loans. The following table presents ALLL and AULC activity by portfolio segment for the three-month and six-month periods ended June 30, 2016 and 2015 : (dollar amounts in thousands) Commercial Commercial Automobile Home Residential Other Total Three-month period ended June 30, 2016: ALLL balance, beginning of period $ 320,367 $ 102,074 $ 48,032 $ 78,102 $ 40,842 $ 24,302 $ 613,719 Loan charge-offs (14,743 ) (2,190 ) (8,850 ) (5,910 ) (2,923 ) (8,929 ) (43,545 ) Recoveries of loans previously charged-off 11,041 2,863 4,530 4,832 2,147 1,377 26,790 Provision (reduction in allowance) for loan and lease losses 6,800 (1,705 ) 6,819 (542 ) 2,312 12,402 26,086 Write-downs of loans sold or transferred to loans held for sale — — — — 14 — 14 ALLL balance, end of period $ 323,465 $ 101,042 $ 50,531 $ 76,482 $ 42,392 $ 29,152 $ 623,064 AULC balance, beginning of period $ 58,385 $ 7,487 $ — $ 2,110 $ 20 $ 7,323 $ 75,325 Provision (reduction in allowance) for unfunded loan commitments and letters of credit (2,343 ) 188 — 40 (11 ) 549 (1,577 ) AULC balance, end of period $ 56,042 $ 7,675 $ — $ 2,150 $ 9 $ 7,872 $ 73,748 ACL balance, end of period $ 379,507 $ 108,717 $ 50,531 $ 78,632 $ 42,401 $ 37,024 $ 696,812 Six-month period ended June 30, 2016: ALLL balance, beginning of period $ 298,746 $ 100,007 $ 49,504 $ 83,671 $ 41,646 $ 24,269 $ 597,843 Loan charge-offs (31,566 ) (14,316 ) (20,336 ) (13,620 ) (5,683 ) (17,716 ) (103,237 ) Recoveries of loans previously charged-off 21,350 32,465 9,246 8,861 3,260 2,748 77,930 Provision (reduction in allowance) for loan and lease losses 34,935 (17,114 ) 12,117 (2,430 ) 3,065 19,851 50,424 Write-downs of loans sold or transferred to loans held for sale — — — — 104 — 104 ALLL balance, end of period $ 323,465 $ 101,042 $ 50,531 $ 76,482 $ 42,392 $ 29,152 $ 623,064 AULC balance, beginning of period $ 55,886 $ 7,562 $ — $ 2,068 $ 18 $ 6,547 $ 72,081 Provision for (reduction in allowance) unfunded loan commitments and letters of credit 156 113 — 82 (9 ) 1,325 1,667 AULC balance, end of period $ 56,042 $ 7,675 $ — $ 2,150 $ 9 $ 7,872 $ 73,748 ACL balance, end of period $ 379,507 $ 108,717 $ 50,531 $ 78,632 $ 42,401 $ 37,024 $ 696,812 (dollar amounts in thousands) Commercial Commercial Automobile Home Residential Other Total Three-month period ended June 30, 2015: ALLL balance, beginning of period $ 284,573 $ 100,752 $ 37,125 $ 110,280 $ 55,380 $ 17,016 $ 605,126 Loan charge-offs (12,213 ) (8,288 ) (7,691 ) (8,629 ) (3,610 ) (6,539 ) (46,970 ) Recoveries of loans previously charged-off 7,802 2,763 4,249 3,979 1,468 1,334 21,595 Provision for (reduction in allowance) loan and lease losses 4,879 (3,167 ) 5,418 5,548 (1,559 ) 8,671 19,790 Allowance for loans sold or transferred to loans held for sale — — 1 — — — 1 ALLL balance, end of period $ 285,041 $ 92,060 $ 39,102 $ 111,178 $ 51,679 $ 20,482 $ 599,542 AULC balance, beginning of period $ 42,315 $ 5,531 $ — $ 2,639 $ 9 $ 4,248 $ 54,742 Provision for (reduction in allowance) unfunded loan commitments and letters of credit (466 ) 247 — (117 ) 8 957 629 AULC balance, end of period $ 41,849 $ 5,778 $ — $ 2,522 $ 17 $ 5,205 $ 55,371 ACL balance, end of period $ 326,890 $ 97,838 $ 39,102 $ 113,700 $ 51,696 $ 25,687 $ 654,913 Six-month period ended June 30, 2015: ALLL balance, beginning of period $ 286,995 $ 102,839 $ 33,466 $ 96,413 $ 47,211 $ 38,272 $ 605,196 Loan charge-offs (36,825 ) (10,301 ) (15,794 ) (17,215 ) (8,473 ) (13,437 ) (102,045 ) Recoveries of loans previously charged-off 21,011 8,788 8,104 7,940 3,515 2,880 52,238 Provision for (reduction in allowance) loan and lease losses 13,860 (9,266 ) 15,618 24,040 9,426 (7,233 ) 46,445 Allowance for loans sold or transferred to loans held for sale — — (2,292 ) — — — (2,292 ) ALLL balance, end of period $ 285,041 $ 92,060 $ 39,102 $ 111,178 $ 51,679 $ 20,482 $ 599,542 AULC balance, beginning of period $ 48,988 $ 6,041 $ — $ 1,924 $ 8 $ 3,845 $ 60,806 Provision for (reduction in allowance) unfunded loan commitments and letters of credit (7,139 ) (263 ) — 598 9 1,360 (5,435 ) AULC balance, end of period $ 41,849 $ 5,778 $ — $ 2,522 $ 17 $ 5,205 $ 55,371 ACL balance, end of period $ 326,890 $ 97,838 $ 39,102 $ 113,700 $ 51,696 $ 25,687 $ 654,913 Any loan in any portfolio may be charged-off prior to the policies described below if a loss confirming event has occurred. Loss confirming events include, but are not limited to, bankruptcy (unsecured), continued delinquency, foreclosure, or receipt of an asset valuation indicating a collateral deficiency and that asset is the sole source of repayment. Additionally, discharged, collateral dependent non-reaffirmed debt in Chapter 7 bankruptcy filings will result in a charge-off to estimated collateral value, less anticipated selling costs. C&I and CRE loans are either fully or partially charged-off at 90 -days past due. Automobile loans and other consumer loans are charged-off at 120 -days past due. First-lien and junior-lien home equity loans are charged-off to the estimated fair value of the collateral, less anticipated selling costs, at 150 -days past due and 120 -days past due, respectively. Residential mortgages are charged-off to the estimated fair value of the collateral, less anticipated selling costs, at 150 -days past due. Credit Quality Indicators To facilitate the monitoring of credit quality for C&I and CRE loans, and for purposes of determining an appropriate ACL level for these loans, Huntington utilizes the following categories of credit grades: Pass - Higher quality loans that do not fit any of the other categories described below. OLEM - The credit risk may be relatively minor yet represent a risk given certain specific circumstances. If the potential weaknesses are not monitored or mitigated, the loan may weaken or the collateral may be inadequate to protect Huntington’s position in the future. For these reasons, Huntington considers the loans to be potential problem loans. Substandard - Inadequately protected loans by the borrower’s ability to repay, equity, and/or the collateral pledged to secure the loan. These loans have identified weaknesses that could hinder normal repayment or collection of the debt. It is likely Huntington will sustain some loss if any identified weaknesses are not mitigated. Doubtful - Loans that have all of the weaknesses inherent in those loans classified as Substandard, with the added elements of the full collection of the loan is improbable and that the possibility of loss is high. The categories above, which are derived from standard regulatory rating definitions, are assigned upon initial approval of the loan or lease and subsequently updated as appropriate. Commercial loans categorized as OLEM, Substandard, or Doubtful are considered Criticized loans. Commercial loans categorized as Substandard or Doubtful are also considered Classified loans. For all classes within all consumer loan portfolios, each loan is assigned a specific PD factor that is partially based on the borrower’s most recent credit bureau score, which we update quarterly. A credit bureau score is a credit score developed by Fair Isaac Corporation based on data provided by the credit bureaus. The credit bureau score is widely accepted as the standard measure of consumer credit risk used by lenders, regulators, rating agencies, and consumers. The higher the credit bureau score, the higher likelihood of repayment and therefore, an indicator of higher credit quality. Huntington assesses the risk in the loan portfolio by utilizing numerous risk characteristics. The classifications described above, and also presented in the table below, represent one of those characteristics that are closely monitored in the overall credit risk management processes. The following table presents each loan and lease class by credit quality indicator at June 30, 2016 and December 31, 2015 : June 30, 2016 Credit Risk Profile by UCS Classification (dollar amounts in thousands) Pass OLEM Substandard Doubtful Total Commercial and industrial: Owner occupied $ 3,708,602 $ 83,694 $ 158,248 $ 753 $ 3,951,297 Purchased credit-impaired 1,484 293 7,379 20 9,176 Other commercial and industrial 16,315,278 316,141 776,383 4,199 17,412,001 Total commercial and industrial 20,025,364 400,128 942,010 4,972 21,372,474 Commercial real estate: Retail properties 1,582,809 8,297 10,903 — 1,602,009 Multi-family 959,152 28,778 14,573 336 1,002,839 Office 787,401 34,957 33,098 387 855,843 Industrial and warehouse 469,083 4,500 18,703 — 492,286 Purchased credit-impaired 3,157 228 12,151 1,537 17,073 Other commercial real estate 1,316,273 4,584 30,343 818 1,352,018 Total commercial real estate 5,117,875 81,344 119,771 3,078 5,322,068 Credit Risk Profile by FICO Score (1) 750+ 650-749 <650 Other (2) Total Automobile 5,205,064 3,779,606 1,116,762 279,212 10,380,644 Home equity: Secured by first-lien 3,346,422 1,463,054 264,024 169,052 5,242,552 Secured by junior-lien 1,818,244 982,067 289,865 114,338 3,204,514 Total home equity 5,164,666 2,445,121 553,889 283,390 8,447,066 Residential mortgage: Residential mortgage 3,886,423 1,848,386 522,665 118,439 6,375,913 Purchased credit-impaired 320 331 453 — 1,104 Total residential mortgage 3,886,743 1,848,717 523,118 118,439 6,377,017 Other consumer: Other consumer 257,518 313,712 59,699 13,223 644,152 Purchased credit-impaired — — — — — Total other consumer $ 257,518 $ 313,712 $ 59,699 $ 13,223 $ 644,152 December 31, 2015 Credit Risk Profile by UCS Classification (dollar amounts in thousands) Pass OLEM Substandard Doubtful Total Commercial and industrial: Owner occupied $ 3,731,113 $ 114,490 $ 165,301 $ 1,896 $ 4,012,800 Purchased credit-impaired 3,051 674 15,661 1,631 21,017 Other commercial and industrial 15,523,625 284,175 714,615 3,602 16,526,017 Total commercial and industrial 19,257,789 399,339 895,577 7,129 20,559,834 Commercial real estate: Retail properties 1,473,014 10,865 22,830 — 1,506,709 Multi-family 1,029,138 28,862 19,898 320 1,078,218 Office 822,824 35,350 36,011 440 894,625 Industrial and warehouse 493,402 259 10,450 56 504,167 Purchased credit-impaired 7,194 397 6,167 — 13,758 Other commercial real estate 1,240,482 4,054 25,811 827 1,271,174 Total commercial real estate 5,066,054 79,787 121,167 1,643 5,268,651 Credit Risk Profile by FICO Score (1) 750+ 650-749 <650 Other (2) Total Automobile 4,680,684 3,454,585 1,086,914 258,495 9,480,678 Home equity: Secured by first-lien 3,369,657 1,441,574 258,328 121,926 5,191,485 Secured by junior-lien 1,841,084 1,024,851 323,998 89,064 3,278,997 Total home equity 5,210,741 2,466,425 582,326 210,990 8,470,482 Residential mortgage Residential mortgage 3,563,683 1,813,002 567,688 52,573 5,996,946 Purchased credit-impaired 381 777 296 — 1,454 Total residential mortgage 3,564,064 1,813,779 567,984 52,573 5,998,400 Other consumer Other consumer 233,969 269,694 49,650 9,689 563,002 Purchased credit-impaired — 52 — — 52 Total other consumer $ 233,969 $ 269,746 $ 49,650 $ 9,689 $ 563,054 (1) Reflects most recent customer credit scores. (2) Reflects deferred fees and costs, loans in process, loans to legal entities, etc. Impaired Loans For all classes within the C&I and CRE portfolios, all loans with an obligor balance of $1 million or greater are considered for individual evaluation on a quarterly basis for impairment. Generally, consumer loans within any class are not individually evaluated on a regular basis for impairment. However, certain home equity and residential mortgage loans are measured for impairment based on the underlying collateral value. All TDRs, regardless of the outstanding balance amount, are also considered to be impaired. Loans acquired with evidence of deterioration of credit quality since origination for which it is probable at acquisition that all contractually required payments will not be collected are also considered to be impaired. Once a loan has been identified for an assessment of impairment, the loan is considered impaired when, based on current information and events, it is probable that all amounts due according to the contractual terms of the loan agreement will not be collected. This determination requires significant judgment and use of estimates, and the eventual outcome may differ significantly from those estimates. When a loan in any class has been determined to be impaired, the amount of the impairment is measured using the present value of expected future cash flows discounted at the loan’s effective interest rate or, as a practical expedient, the observable market price of the loan, or the fair value of the collateral, less anticipated selling costs, if the loan is collateral dependent. When the present value of expected future cash flows is used, the effective interest rate is the original contractual interest rate of the loan adjusted for any premium, discount, fees, or costs. A specific reserve is established as a component of the ALLL when a commercial loan has been determined to be impaired. Subsequent to the initial measurement of impairment, if there is a significant change to the impaired loan’s expected future cash flows, or if actual cash flows are significantly different from the cash flows previously estimated, Huntington recalculates the impairment and appropriately adjusts the specific reserve. Similarly, if Huntington measures impairment based on the observable market price of an impaired loan or the fair value of the collateral of an impaired collateral dependent loan, Huntington will adjust the specific reserve. When a loan within any class is impaired, the accrual of interest income is discontinued unless the receipt of principal and interest is no longer in doubt. Interest income on TDRs is accrued when all principal and interest is expected to be collected under the post-modification terms. Cash receipts received on nonaccruing impaired loans within any class are generally applied entirely against principal until the loan has been collected in full (including already charged-off portion), after which time any additional cash receipts are recognized as interest income. Cash receipts received on accruing impaired loans within any class are applied in the same manner as accruing loans that are not considered impaired. 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 June 30, 2016 and December 31, 2015 : (dollar amounts in thousands) Commercial and Industrial Commercial Real Estate Automobile Home Equity Residential Mortgage Other Consumer Total ALLL at June 30, 2016: Portion of ALLL balance: Attributable to purchased credit-impaired loans $ — $ — $ — $ — $ — $ — $ — Attributable to loans individually evaluated for impairment 30,636 4,894 1,795 12,962 16,513 309 67,109 Attributable to loans collectively evaluated for impairment 292,829 96,148 48,736 63,520 25,879 28,843 555,955 Total ALLL balance $ 323,465 $ 101,042 $ 50,531 $ 76,482 $ 42,392 $ 29,152 $ 623,064 Loan and Lease Ending Balances at June 30, 2016: Portion of loan and lease ending balance: Attributable to purchased credit-impaired loans $ 9,176 $ 17,073 $ — $ — $ 1,104 $ — $ 27,353 Individually evaluated for impairment 579,003 108,187 30,800 244,917 347,412 4,664 1,314,983 Collectively evaluated for impairment 20,784,295 5,196,808 10,349,844 8,202,149 6,028,501 639,488 51,201,085 Total loans and leases evaluated for impairment $ 21,372,474 $ 5,322,068 $ 10,380,644 $ 8,447,066 $ 6,377,017 $ 644,152 $ 52,543,421 (dollar amounts in thousands) Commercial and Industrial Commercial Real Estate Automobile Home Equity Residential Mortgage Other Consumer Total ALLL at December 31, 2015 Portion of ALLL bal |
