| 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 $74 million and $262 million at September 30, 2016 and December 31, 2015 , respectively. Loans and leases with a fair value of $15.5 billion were acquired by Huntington as part of the FirstMerit acquisition. These loans were recorded at fair value. The fair values of 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 credit and other risk associated with the loans. Of the total acquired loans and leases, Huntington has elected the fair value option for $56 million of consumer loans. These loans will subsequently be measured at fair value with any changes in fair value recognized in noninterest income in the Unaudited Condensed Consolidated Statements of Income. Loan and Lease Portfolio Composition The following table provides a detailed listing of Huntington’s loan and lease portfolio at September 30, 2016 and December 31, 2015 : (dollar amounts in thousands) September 30, December 31, Loans and leases: Commercial and industrial $ 27,667,532 $ 20,559,834 Commercial real estate 7,255,907 5,268,651 Automobile 10,791,351 9,480,678 Home equity 10,120,029 8,470,482 Residential mortgage 7,665,275 5,998,400 RV and marine finance 1,839,706 — Other consumer 964,666 563,054 Loans and leases 66,304,466 50,341,099 Allowance for loan and lease losses (616,898 ) (597,843 ) Net loans and leases $ 65,687,568 $ 49,743,256 As shown in the table below, the primary loan and lease portfolios are: commercial and consumer. For ACL purposes, these portfolios are further disaggregated into classes. During the 2016 third quarter, in connection with the acquisition of FirstMerit, Huntington enhanced its portfolio and class structure. This structure corresponds with how the ACL is determined. The portfolios, and classes within each portfolio, are now as follows: Portfolio Class Commercial Commercial and industrial Commercial real estate Consumer Automobile Home equity Residential mortgage RV and marine finance Other consumer Purchased Credit-Impaired Loans Purchased loans with evidence of deterioration in credit quality since origination for which it is probable at acquisition that we will be unable to collect all contractually required payments are considered to be credit impaired. Purchased credit-impaired loans are initially recorded at fair value, which is estimated by discounting the cash flows expected to be collected at the acquisition date. Because the estimate of expected cash flows reflects an estimate of future credit losses expected to be incurred over the life of the loans, an allowance for credit losses is not recorded at the acquisition date. The excess of cash flows expected at acquisition over the estimated fair value, referred to as the accretable yield, is recognized in interest income over the remaining life of the loan, or pool of loans, on a level-yield basis. The difference between the contractually required payments at acquisition and the cash flows expected to be collected at acquisition is referred to as the nonaccretable difference. A subsequent decrease in the estimate of cash flows expected to be received on purchased credit-impaired loans generally results in the recognition of an allowance for credit losses. Subsequent increases in cash flows result in reversal of any nonaccretable difference (or allowance for loan and lease losses to the extent any has been recorded) with a positive impact on interest income subsequently recognized. The measurement of cash flows involves assumptions and judgments for interest rates, prepayments, default rates, loss severity, and collateral values. All of these factors are inherently subjective and significant changes in the cash flow estimates over the life of the loan can result. The following table reflects the contractually required payments receivable, cash flows expected to be collected, and fair value of the credit impaired FirstMerit loans at acquisition date: (dollar amounts in thousands) August 16, Contractually required payments including interest $ 283,947 Less: nonaccretable difference (84,315 ) Cash flows expected to be collected 199,632 Less: accretable yield (17,717 ) Fair value of loans acquired $ 181,915 The following table presents a rollforward of the accretable yield for purchased credit impaired loans for the three-month and nine-month periods ended September 30, 2016 : and 2015 Three Months Ended Nine Months Ended (dollar amounts in thousands) September 30, September 30, FirstMerit Balance, beginning of period $ — $ — Impact of acquisition/purchase on August 16, 2016 17,717 17,717 Accretion (1,091 ) (1,091 ) Reclassification (to) from nonaccretable difference 3,308 3,308 Balance, end of period $ 19,934 $ 19,934 There was no allowance for loan losses recorded on the purchased credit-impaired loan portfolio at September 30, 2016 . The following table reflects the ending and unpaid balances of all contractually required payments and carrying amounts of the acquired loans by acquisition at September 30, 2016 : September 30, 2016 (dollar amounts in thousands) Ending Unpaid FirstMerit Commercial and industrial $ 104,560 $ 148,243 Commercial real estate 49,135 64,146 Total $ 153,695 $ 212,389 FDIC Acquired Loans Subject to Loss Share Agreements In connection with the acquisition of FirstMerit, Huntington acquired loans subject to loss share agreements with the FDIC. The loss share agreements stipulate that the FDIC will reimburse Huntington for a portion of any amounts the Bank concludes are uncollectible, resulting in charge-offs. The agreements also stipulate that Huntington must repay the FDIC any related recoveries generated from the acquired loans. The reimbursements to Huntington are recorded as an indemnification asset and is recognized in Accrued income and other assets in the Unaudited Condensed Consolidated Balance Sheets. The obligation to the FDIC is recorded as a loss sharing liability and is recognized in Accrued expenses and other liabilities in the Unaudited Condensed Consolidated Balance Sheets. The following table presents additional information relating to FDIC acquired loans subject to loss sharing agreements at September 30, 2016 : (dollar amounts in thousands) September 30, FirstMerit Outstanding balance of FDIC acquired loans $ 117,316 Indemnification asset 7,267 Loss sharing liability 5,897 Loan Purchases and Sales The following table summarizes significant portfolio loan purchase and sale activity for the three-month and nine-month periods ended September 30, 2016 and 2015 . The table below excludes mortgage loans originated for sale. Three Months Ended Nine Months Ended (dollar amounts in thousands) 2016 2015 2016 2015 Portfolio loans and leases purchased or transferred from held for sale: Commercial and industrial $ 16,498 $ 180,036 $ 354,670 $ 224,532 Commercial real estate — — — — Automobile — — — — Home equity 81,080 (1 ) — 81,080 (1 ) — Residential mortgage 725 11,284 4,538 17,921 RV and marine finance — — — — Other consumer — — — — Total $ 98,303 $ 191,320 $ 440,288 $ 242,453 Portfolio loans and leases sold or transferred to loans held for sale: Commercial and industrial $ 1,140,096 $ 98,117 $ 1,380,893 $ 284,019 Commercial real estate 124,231 — 124,231 — Automobile 1,541,250 — 1,541,250 764,158 (2) Home equity — 96,786 — 96,786 Residential mortgage — — — — RV and marine finance — — — — Other consumer — — — — Total $ 2,805,577 $ 194,903 $ 3,046,374 $ 1,144,963 (1) Reflects the transfer of approximately $81 million home equity loans transferred back to loans and leases in the 2016 third quarter. (2) 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 Commercial portfolio (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, RV and marine finance 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 Commercial portfolio, 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 September 30, 2016 and December 31, 2015 : (dollar amounts in thousands) September 30, December 31, Commercial and industrial $ 220,862 $ 175,195 Commercial real estate 21,300 28,984 Automobile 4,777 6,564 Home equity 69,044 66,278 Residential mortgage 88,155 94,560 RV and marine finance 96 — Other consumer — — Total nonaccrual loans $ 404,234 $ 371,581 The following table presents an aging analysis of loans and leases, including past due loans, by loan class at September 30, 2016 and December 31, 2015 : (1) September 30, 2016 Past Due Loans Accounted for Under the Fair Value Option Total Loans 90 or (dollar amounts in thousands) 30-59 60-89 90 or Total Current Purchased Credit Impaired Commercial and industrial $ 34,066 $ 13,379 $ 69,766 $ 117,211 $ 27,445,761 $ 104,560 $ — $ 27,667,532 $ 20,188 (2) Commercial real estate 7,890 1,991 35,428 45,309 7,161,463 49,135 — 7,255,907 21,260 Automobile loans and leases 64,668 15,582 8,244 88,494 10,699,599 — 3,258 10,791,351 7,871 Home equity 36,728 20,799 53,279 110,806 10,005,280 — 3,943 10,120,029 12,997 Residential mortgage 113,184 38,867 111,540 263,591 7,322,416 — 79,268 7,665,275 68,329 (3) RV and marine finance 6,754 2,042 1,048 9,844 1,827,721 — 2,141 1,839,706 1,043 Other consumer 8,731 3,284 2,997 15,012 949,074 — 580 964,666 2,988 Total loans and leases $ 272,021 $ 95,944 $ 282,302 $ 650,267 $ 65,411,314 $ 153,695 $ 89,190 $ 66,304,466 $ 134,676 December 31, 2015 Past Due Loans Accounted for Under the Fair Value Option Total Loans 90 or (dollar amounts in thousands) 30-59 60-89 90 or Total Current Purchased Commercial and industrial 44,715 13,580 46,978 105,273 20,454,561 — — 20,559,834 8,724 (2) Commercial real estate 9,232 5,721 21,666 36,619 5,232,032 — — 5,268,651 9,549 Automobile loans and leases 69,553 14,965 7,346 91,864 9,388,814 — — 9,480,678 7,162 Home equity 36,477 16,905 56,300 109,682 8,360,800 — — 8,470,482 9,044 Residential mortgage 102,773 34,298 119,354 256,425 5,741,975 — — 5,998,400 69,917 (4) RV and marine finance — — — — — — — — — 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 include Huntington Technology Finance administrative lease delinquencies. (3) Includes $53 million guaranteed by the U.S. government. (4) 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 Commercial portfolio, 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, residential mortgage, and RV and marine finance 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 acquired loans were recorded at their fair value as of the acquisition date and the prior ALLL was eliminated. An ALLL for acquired loans is estimated using a methodology similar to that used for originated loans. The allowance determined for each acquired loan is compared to the remaining fair value adjustment for that loan. If the computed allowance is greater, the excess is added to the allowance through a provision for loan losses. If the computed allowance is less, no additional allowance is recognized. 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 loans transferred to loans held for sale, securitized or sold. The following table presents ALLL and AULC activity by portfolio segment for the three-month and nine-month periods ended September 30, 2016 and 2015 : (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 (reduction in allowance) for 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 (reduction in allowance) for unfunded loan commitments and letters of credit 9,739 543 10,282 Fair value of acquired AULC 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 (reduction in allowance) for 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 Fair value of acquired AULC 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 (dollar amounts in thousands) Commercial Consumer Total Three-month period ended September 30, 2015: ALLL balance, beginning of period $ 377,101 $ 222,441 $ 599,542 Loan charge-offs (29,992 ) (30,883 ) (60,875 ) Recoveries of loans previously charged-off 33,955 10,757 44,712 Provision for (reduction in allowance) loan and lease losses 13,232 392 13,624 Allowance for loans sold or transferred to loans held for sale — (5,065 ) (5,065 ) ALLL balance, end of period $ 394,296 $ 197,642 $ 591,938 AULC balance, beginning of period $ 47,627 $ 7,744 $ 55,371 Provision for (reduction in allowance) unfunded loan commitments and letters of credit 8,759 93 8,852 Fair value of acquired AULC — — — AULC balance, end of period $ 56,386 $ 7,837 $ 64,223 ACL balance, end of period $ 450,682 $ 205,479 $ 656,161 Nine-month period ended September 30, 2015: ALLL balance, beginning of period $ 389,834 $ 215,362 $ 605,196 Loan charge-offs (77,118 ) (85,802 ) (162,920 ) Recoveries of loans previously charged-off 63,754 33,196 96,950 Provision for (reduction in allowance) loan and lease losses 17,826 42,243 60,069 Allowance for loans sold or transferred to loans held for sale — (7,357 ) (7,357 ) ALLL balance, end of period $ 394,296 $ 197,642 $ 591,938 AULC balance, beginning of period $ 55,029 $ 5,777 $ 60,806 Provision for (reduction in allowance) unfunded loan commitments and letters of credit 1,357 2,060 3,417 Fair value of acquired AULC — — — AULC balance, end of period $ 56,386 $ 7,837 $ 64,223 ACL balance, end of period $ 450,682 $ 205,479 $ 656,161 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. Commercial loans are either fully or partially charged-off at 90 -days past due. Automobile, RV and marine finance 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 Commercial 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 the Consumer loan portfolio, 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. Future performance of the consumer portfolios is not solely based on the FICO score distribution. Huntington utilizes a custom scorecard in the credit decisioning process for Indirect Auto and Home Equity to provide a proprietary assessment of expected performance at the loan level. 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 September 30, 2016 and December 31, 2015 : September 30, 2016 Credit Risk Profile by UCS Classification (dollar amounts in thousands) Pass OLEM Substandard Doubtful Total Commercial and industrial $ 25,922,981 $ 591,927 $ 1,128,765 $ 23,859 $ 27,667,532 Commercial real estate 6,977,718 120,371 155,607 2,211 7,255,907 Credit Risk Profile by FICO Score (1), (2) 750+ 650-749 <650 Other (3) Total Automobile $ 5,430,033 $ 3,933,502 $ 1,229,856 $ 194,702 $ 10,788,093 Home equity 6,295,798 2,895,693 636,889 287,706 10,116,086 Residential mortgage 4,609,160 2,219,426 625,144 132,277 7,586,007 RV and marine finance 1,027,428 633,849 70,189 106,099 1,837,565 Other consumer 336,081 430,994 120,132 76,879 964,086 December 31, 2015 Credit Risk Profile by UCS Classification (dollar amounts in thousands) Pass OLEM Substandard Doubtful Total Commercial and industrial $ 19,257,789 $ 399,339 $ 895,577 $ 7,129 $ 20,559,834 Commercial real estate 5,066,054 79,787 121,167 1,643 5,268,651 Credit Risk Profile by FICO Score (1), (2) 750+ 650-749 <650 Other (3) Total Automobile $ 4,680,684 $ 3,454,585 $ 1,086,914 $ 258,495 $ 9,480,678 Home equity 5,210,741 2,466,425 582,326 210,990 8,470,482 Residential mortgage 3,564,064 1,813,779 567,984 52,573 5,998,400 RV and marine finance — — — — — Other consumer 233,969 269,746 49,650 9,689 563,054 (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 For all classes within the Commercial portfolio, 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 September 30, 2016 and December 31, 2015 : (dollar amounts in thousands) Commercial Consumer Total ALLL at September 30, 2016: Portion of ALLL balance: Purchased credit-impaired loans $ — $ — $ — Attributable to loans individually evaluated for impairment 17,246 11,603 28,849 Attributable to loans collectively evaluated for impairment 414,549 173,500 588,049 Total ALLL balance $ 431,795 $ 185,103 $ 616,898 Loan and Lease Ending Balances at September 30, 2016: (1) Portion of |
