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 and leases are carried at the principal amount outstanding, net of unamortized deferred loan origination fees and costs and net of unearned income. At September 30, 2013, and December 31, 2012, the aggregate amount of these net unamortized deferred loan origination fees and costs and net unearned income was $172.5 million and $174.5 million, respectively.

The following table provides a detailed listing of Huntington's loan and lease portfolio at September 30, 2013 and December 31, 2012:

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:

On March 30, 2012, Huntington acquired the loans of Fidelity Bank located in Dearborn, Michigan from the FDIC. Under the agreement, loans with a fair value of $523.9 million were transferred to Huntington. These loans were recorded at fair value in accordance with applicable accounting guidance, ASC 805. The fair values for the loans were estimated using discounted cash flow analyses using interest rates currently being offered for loans with similar terms (Level 3), and reflected an estimate of probable losses and the credit risk associated with the loans.

Purchased 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 presents a rollforward of the accretable yield for three-month and nine-month periods ended September 30, 2013 and 2012:

At September 30, 2013, there was $2.2 million of allowance for loan losses recorded on the purchased impaired loan portfolio. The following table reflects the outstanding balance of all contractually required payments and carrying amounts of the acquired loans at September 30, 2013 and December 31, 2012:

The following table summarizes significant portfolio loan and lease purchase and sale activity for the three-month and nine-month periods ended September 30, 2013 and 2012:


		Commercial		Commercial				Home		Residential		Other
		and Industrial		Real Estate		Automobile		Equity		Mortgage		Consumer		Total
(dollar amounts in thousands)

Portfolio loans and leases purchased during the:
	Three-month period ended September 30, 2013	$	28,432	$	---	$	---	$	---	$	---	$	---	$	28,432
	Nine-month period ended September 30, 2013	$	84,169	$	---	$	---	$	---	$	---	$	---	$	84,169

	Three-month period ended September 30, 2012	$	58,638	$	---	$	---	$	---	$	---	$	---	$	58,638
	Nine-month period ended September 30, 2012	$	536,139	$	378,122	$	---	$	13,025	$	62,324	$	85	$	989,695

Portfolio loans and leases sold or transferred to loans held for sale during the:
	Three-month period ended September 30, 2013	$	70,823	$	---	$	---	$	---	$	49,931	$	---	$	120,754
	Nine-month period ended September 30, 2013	$	153,889	$	3,991	$	---	$	---	$	205,335		---	$	363,215

	Three-month period ended September 30, 2012	$	65,768	$	4,812	$	---	$	---	$	---	$	---	$	70,580
	Nine-month period ended September 30, 2012	$	190,933	$	52,554	$	2,783,748	$	---	$	179,621	$	---	$	3,206,856

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 which continue to accrue interest at the rate guaranteed by the government agency. 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 charged-off 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, 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, 2013 and December 31, 2012:

The following table presents an aging analysis of loans and leases, including past due loans, by loan class at September 30, 2013 and December 31, 2012: (1)

September 30, 2013
														90 or more
(dollar amounts in thousands)			Past Due									Total Loans		days past due
		30-59 Days		60-89 Days		90 or more days			Total	Current		and Leases		and accruing

Commercial and industrial:
	Owner occupied	$	7,858	$	3,665	$	30,621	$	42,144	$	4,349,691	$	4,391,835	$	---
	Purchased credit-impaired		402		774		19,217		20,393		23,245		43,638		19,217
	Other commercial and industrial		11,235		3,297		10,109		24,641		12,874,419		12,899,060		---
Total commercial and industrial		$	19,495	$	7,736	$	59,947	$	87,178	$	17,247,355	$	17,334,533	$	19,217⁽²⁾

Commercial real estate:
	Retail properties	$	2,822	$	2,022	$	5,851	$	10,695	$	1,224,025	$	1,234,720	$	---
	Multi family		2,059		823		8,253		11,135		960,380		971,515		---
	Office		4,501		1,201		15,887		21,589		948,001		969,590		---
	Industrial and warehouse		3,049		1,194		2,729		6,972		520,784		527,756		---
	Purchased credit-impaired		2,545		3,109		44,026		49,680		39,566		89,246		44,026
	Other commercial real estate		2,375		568		9,628		12,571		1,067,327		1,079,898		---
Total commercial real estate		$	17,351	$	8,917	$	86,374	$	112,642	$	4,760,083	$	4,872,725	$	44,026⁽²⁾

Automobile		$	34,808	$	7,554	$	3,683	$	46,045	$	6,271,067	$	6,317,112	$	3,599

Home equity:
	Secured by first-lien	$	17,554	$	7,830	$	28,877	$	54,261	$	4,699,206	$	4,753,467	$	6,493
	Secured by junior-lien		31,079		14,030		30,418		75,527		3,517,691		3,593,218		6,551
Total home equity		$	48,633	$	21,860	$	59,295	$	129,788	$	8,216,897	$	8,346,685	$	13,044

Residential mortgage:
	Residential mortgage	$	114,101	$	37,628	$	164,564	$	316,293	$	4,988,384	$	5,304,677	$	95,569⁽³⁾
	Purchased credit-impaired		106		---		178		284		2,003		2,287		179
Total residential mortgage		$	114,207	$	37,628	$	164,742	$	316,577	$	4,990,387	$	5,306,964	$	95,748

Other consumer:
	Other consumer	$	6,326	$	1,430	$	1,100	$	8,856	$	368,831	$	377,687	$	1,102
	Purchased credit-impaired		---		---		---		---		127		127		---
Total other consumer		$	6,326	$	1,430	$	1,100	$	8,856	$	368,958	$	377,814	$	1,102

Total loans and leases		$	240,820	$	85,125	$	375,141	$	701,086	$	41,854,747	$	42,555,833	$	176,736

December 31, 2012
														90 or more
(dollar amounts in thousands)			Past Due									Total Loans		days past due
		30-59 Days		60-89 Days		90 or more days		Total		Current		and Leases		and accruing

Commercial and industrial:
	Owner occupied	$	11,409	$	6,302	$	31,997	$	49,708	$	4,236,211	$	4,285,919	$	---
	Purchased credit-impaired		986		3,533		26,648		31,167		23,305		54,472		26,648
	Other commercial and industrial		20,273		4,211		14,786		39,270		12,591,028		12,630,298		---
Total commercial and industrial		$	32,668	$	14,046	$	73,431	$	120,145	$	16,850,544	$	16,970,689	$	26,648⁽²⁾

Commercial real estate:
	Retail properties	$	3,459	$	4,203	$	9,677	$	17,339	$	1,413,520	$	1,430,859	$	---
	Multi family		7,961		1,314		12,062		21,337		963,063		984,400		---
	Office		1,054		2,415		23,335		26,804		909,310		936,114		---
	Industrial and warehouse		6,597		118		5,433		12,148		584,754		596,902		---
	Purchased credit-impaired		556		1,751		56,660		58,967		67,956		126,923		56,660
	Other commercial real estate		2,725		2,192		25,463		30,380		1,293,662		1,324,042		---
Total commercial real estate		$	22,352	$	11,993	$	132,630	$	166,975	$	5,232,265	$	5,399,240	$	56,660⁽²⁾

Automobile		$	36,267	$	7,803	$	4,438	$	48,508	$	4,585,312	$	4,633,820	$	4,418

Home equity
	Secured by first-lien	$	26,288	$	9,992	$	28,322	$	64,602	$	4,315,985	$	4,380,587	$	5,202
	Secured by junior-lien		34,365		16,553		35,150		86,068		3,868,687		3,954,755		12,998
Total home equity		$	60,653	$	26,545	$	63,472	$	150,670	$	8,184,672	$	8,335,342	$	18,200

Residential mortgage
	Residential mortgage	$	118,582	$	44,747	$	164,035	$	327,364	$	4,640,065	$	4,967,429	$	92,925⁽⁴⁾
	Purchased credit-impaired		58		---		609		667		1,576		2,243		609
Total residential mortgage		$	118,640	$	44,747	$	164,644	$	328,031	$	4,641,641	$	4,969,672	$	93,534

Other consumer
	Other consumer	$	7,431	$	2,117	$	1,672	$	11,220	$	408,302	$	419,522	$	1,672
	Purchased credit-impaired		---		76		---		76		64		140		---
Total other consumer		$	7,431	$	2,193	$	1,672	$	11,296	$	408,366	$	419,662	$	1,672

Total loans and leases		$	278,011	$	107,327	$	440,287	$	825,625	$	39,902,800	$	40,728,425	$	201,132


(1)	NALs are included in this aging analysis based on the loan's past due status.
(2)	All amounts represent accruing purchased impaired loans related to the FDIC-assisted Fidelity Bank acquisition. Under the applicable accounting guidance (ASC 310-30), the loans were recorded at fair value upon acquisition and remain in accruing status.
(3)	Includes $81,770 thousand guaranteed by the U.S. government.
(4)	Includes $90,816 thousand guaranteed by the U.S. government.

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 declining 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. Also, the ACL assessment includes the on-going assessment of credit quality metrics, and a comparison of certain ACL benchmarks to current performance. 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 per ASC 310-10, specific reserves related to loans considered to be impaired, and loans involved in troubled debt restructurings allocated per ASC 310-40, 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 greater than $1.0 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 continuously 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 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 using a 24-month emergence period.

In the case of more 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 borrowers past and current payment performance, and this information is used to estimate expected losses over the 12-month 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. Models utilized in the ALLL estimation process are subject to the Company's model validation policies.

The general reserve consists of the economic reserve and risk-profile reserve components. The economic reserve component considers the potential impact of changing market and economic conditions on portfolio performance. The risk-profile component considers 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.

During the quarter, we made enhancements to our commercial risk rating system used for assessing credit risk when determining our ACL. The enhancements made during the quarter provide greater granularity in overall corporate risk ratings and incorporate a broader set of financial metrics in the determination of the PD and LGD. The PD and LGD factors combine to represent the transaction reserve component for a given credit exposure.

In conjunction with the enhancements to our commercial risk rating system noted above, we enhanced our process for incorporating risk inherent in the economic and risk profile components of our general reserve, which is discussed more fully in Note 1 of Form 10-K. These enhancements allow Huntington to better reflect the credit exposure inherent in our portfolio, as well as overall risks in the economic environment. These changes did not have a material impact on our overall ACL.

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.

During a 2013 third quarter review of our consumer portfolios, we identified additional loans associated with borrowers who had filed Chapter 7 bankruptcy and had not reaffirmed their debt, thus meeting the definition of collateral dependent per OCC guidance, and as such, considered a concession, placed on nonaccrual status, and written down to collateral value, less anticipated selling costs. As a result of our review of the existing consumer portfolios, NCOs increased by $13.1 million and the ALLL increased by $6.0 million based on our estimated exposure. We will finalize the review during the 2013 fourth quarter.

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

The following table presents ALLL and AULC activity by portfolio segment for the three-month and nine-month periods ended September 30, 2013 and 2012:

			Commercial		Commercial				Home		Residential		Other
			and Industrial		Real Estate		Automobile		Equity		Mortgage		Consumer		Total
(dollar amounts in thousands)

Three-month period ended September 30, 2013:

	ALLL balance, beginning of period		$	233,679	$	255,849	$	39,990	$	115,626	$	63,802	$	24,130	$	733,076
		Loan charge-offs		(9,226)		(22,759)		(6,000)		(30,206)		(7,435)		(9,626)		(85,252)
		Recoveries of loans previously charged-off		7,565		10,196		3,279		3,031		2,646		2,793		29,510
		Provision for loan and lease losses		30,030		(78,764)		(10,182)		35,617		(7,691)		19,756		(11,234)
		Allowance for loans sold or transferred to loans held for sale		---		---		---		---		(70)		---		(70)
	ALLL balance, end of period		$	262,048	$	164,522	$	27,087	$	124,068	$	51,252	$	37,053	$	666,030

	AULC balance, beginning of period		$	37,471	$	4,408	$	---	$	1,688	$	6	$	650	$	44,223
		Provision for unfunded loan commitments and letters of credit		13,621		8,394		---		59		7		553		22,634
	AULC balance, end of period		$	51,092	$	12,802	$	---	$	1,747	$	13	$	1,203	$	66,857

	ACL balance, end of period		$	313,140	$	177,324	$	27,087	$	125,815	$	51,265	$	38,256	$	732,887

Nine-month period ended September 30, 2013:

	ALLL balance, beginning of period		$	241,051	$	285,369	$	34,979	$	118,764	$	61,658	$	27,254	$	769,075
		Loan charge-offs		(31,220)		(59,320)		(16,907)		(74,504)		(25,028)		(25,653)		(232,632)
		Recoveries of loans previously charged-off		24,656		31,596		10,129		12,692		5,471		5,869		90,413
		Provision for loan and lease losses		27,561		(93,123)		(1,114)		67,116		9,485		29,583		39,508
		Allowance for loans sold or transferred to loans held for sale		---		---		---		---		(334)		---		(334)
	ALLL balance, end of period		$	262,048	$	164,522	$	27,087	$	124,068	$	51,252	$	37,053	$	666,030

	AULC balance, beginning of period		$	33,868	$	4,740	$	---	$	1,356	$	3	$	684	$	40,651
		Provision for unfunded loan commitments and letters of credit		17,224		8,062		---		391		10		519		26,206
	AULC balance, end of period		$	51,092	$	12,802	$	---	$	1,747	$	13	$	1,203	$	66,857

	ACL balance, end of period		$	313,140	$	177,324	$	27,087	$	125,815	$	51,265	$	38,256	$	732,887

			Commercial		Commercial				Home		Residential		Other
			and Industrial		Real Estate		Automobile		Equity		Mortgage		Consumer		Total
(dollar amounts in thousands)

Three-month period ended September 30, 2012:

	ALLL balance, beginning of period		$	280,548	$	305,391	$	30,217	$	135,562	$	78,015	$	29,913	$	859,646
		Loan charge-offs		(22,522)		(26,513)		(7,925)		(48,710)		(17,644)		(8,872)		(132,186)
		Recoveries of loans previously charged-off		9,499		9,139		3,906		2,114		764		1,669		27,091
		Provision for loan and lease losses		(10,444)		(7,641)		7,187		33,639		5,809		5,869		34,419
		Allowance for loans sold or transferred to loans held for sale		---		---		(104)		---		276		---		172
	ALLL balance, end of period		$	257,081	$	280,376	$	33,281	$	122,605	$	67,220	$	28,579	$	789,142

	AULC balance, beginning of period		$	42,844	$	5,225	$	---	$	2,190	$	4	$	715	$	50,978
		Provision for unfunded loan commitments and letters of credit		3,263		(125)		---		(513)		(1)		(39)		2,585
	AULC balance, end of period		$	46,107	$	5,100	$	---	$	1,677	$	3	$	676	$	53,563

	ACL balance, end of period		$	303,188	$	285,476	$	33,281	$	124,282	$	67,223	$	29,255	$	842,705

Nine-month period ended September 30, 2012:

	ALLL balance, beginning of period		$	275,367	$	388,706	$	38,282	$	143,873	$	87,194	$	31,406	$	964,828
		Loan charge-offs		(79,746)		(83,662)		(20,534)		(97,058)		(41,292)		(25,946)		(348,238)
		Recoveries of loans previously charged-off		22,550		26,604		12,988		5,688		3,056		5,020		75,906
		Provision for loan and lease losses		38,910		(51,272)		7,784		70,102		19,200		18,099		102,823
		Allowance for loans sold or transferred to loans held for sale		---		---		(5,239)		---		(938)		---		(6,177)
	ALLL balance, end of period		$	257,081	$	280,376	$	33,281	$	122,605	$	67,220	$	28,579	$	789,142

	AULC balance, beginning of period		$	39,658	$	5,852	$	---	$	2,134	$	1	$	811	$	48,456
		Provision for unfunded loan commitments and letters of credit		6,449		(752)		---		(457)		2		(135)		5,107
	AULC balance, end of period		$	46,107	$	5,100	$	---	$	1,677	$	3	$	676	$	53,563

	ACL balance, end of period		$	303,188	$	285,476	$	33,281	$	124,282	$	67,223	$	29,255	$	842,705

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 charged-off or written down to net realizable value 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.

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 inadequately protect Huntington's position in the future. For these reasons, Huntington considers the loans to be potential problem loans.

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

Doubtful = Loans that have all of the weaknesses inherent in those loans classified as Substandard, with the added elements of the full collection of the loan is improbable and that the possibility of loss is high.

The categories above, which are derived from standard regulatory rating definitions, are assigned upon initial approval of the loan or lease and subsequently updated as appropriate.

Commercial loans categorized as OLEM, Substandard, or Doubtful are considered Criticized loans. Commercial loans categorized as Substandard or Doubtful are also considered Classified loans.

For all classes within all consumer loan portfolios, each loan is assigned a specific PD factor that is partially based on the borrower's most recent credit bureau score (FICO), which we update quarterly. A FICO credit bureau score is a credit score developed by Fair Isaac Corporation based on data provided by the credit bureaus. The FICO credit bureau score is widely accepted as the standard measure of consumer credit risk used by lenders, regulators, rating agencies, and consumers. The higher the FICO credit bureau score, the higher likelihood of repayment and therefore, an indicator of higher credit quality.

Huntington assesses the risk in the loan portfolio by utilizing numerous risk characteristics. The classifications described above, and also presented in the table below, represent one of those characteristics that are closely monitored in the overall credit risk management processes. The table below shows an increase in FICO scores less than 650 for the automobile portfolio, and to a lesser degree, the home equity and residential mortgage portfolios. These increases are proportional to growth in the portfolio and do not reflect a deterioration in asset quality for the portfolios, as other risk characteristics mitigate any increased level of risk associated with the FICO score distribution.

The following table presents each loan and lease class by credit quality indicator at September 30, 2013 and December 31, 2012:

		September 30, 2013
		Credit Risk Profile by UCS classification
(dollar amounts in thousands)		Pass		OLEM		Substandard		Doubtful		Total
Commercial and industrial:
	Owner occupied	$	4,035,048	$	169,877	$	184,075	$	2,835	$	4,391,835
	Purchased credit-impaired		5,123		1,970		35,635		910		43,638
	Other commercial and industrial		12,297,970		213,288		383,695		4,107		12,899,060
Total commercial and industrial		$	16,338,141	$	385,135	$	603,405	$	7,852	$	17,334,533

Commercial real estate:
	Retail properties	$	1,103,417	$	32,465	$	98,838	$	---	$	1,234,720
	Multi family		916,230		14,715		40,456		114		971,515
	Office		862,359		20,884		85,475		872		969,590
	Industrial and warehouse		481,288		17,668		28,800		---		527,756
	Purchased credit-impaired		11,988		5,941		71,317		---		89,246
	Other commercial real estate		986,227		17,854		75,518		299		1,079,898
Total commercial real estate		$	4,361,509	$	109,527	$	400,404	$	1,285	$	4,872,725

		Credit Risk Profile by FICO score (1)
		750+		650-749		<650		Other (2)		Total
Automobile		$	2,836,051	$	2,427,360	$	874,804	$	178,897	$	6,317,112

Home equity:
	Secured by first-lien	$	2,946,368	$	1,413,536	$	316,154	$	77,409	$	4,753,467
	Secured by junior-lien		1,827,991		1,264,222		429,749		71,256		3,593,218
Total home equity		$	4,774,359	$	2,677,758	$	745,903	$	148,665	$	8,346,685

Residential mortgage:
	Residential mortgage	$	2,772,000	$	1,733,926	$	714,181	$	84,570	$	5,304,677
	Purchased credit-impaired		428		1,130		729		---		2,287
Total residential mortgage		$	2,772,428	$	1,735,056	$	714,910	$	84,570	$	5,306,964

Other consumer:
	Other consumer	$	148,866	$	146,839	$	44,214	$	37,768	$	377,687
	Purchased credit-impaired		---		89		38		---		127
Total other consumer		$	148,866	$	146,928	$	44,252	$	37,768	$	377,814


		December 31, 2012
		Credit Risk Profile by UCS classification
(dollar amounts in thousands)		Pass		OLEM		Substandard		Doubtful		Total
Commercial and industrial:
	Owner occupied	$	3,970,597	$	108,731	$	205,822	$	769	$	4,285,919
	Purchased credit-impaired		1,663		6,555		46,254		---		54,472
	Other commercial and industrial		12,146,017		145,111		337,805		1,365		12,630,298
Total commercial and industrial		$	16,118,277	$	260,397	$	589,881	$	2,134	$	16,970,689

Commercial real estate:
	Retail properties	$	1,184,987	$	63,976	$	181,896	$	---	$	1,430,859
	Multi family		902,616		24,098		57,548		138		984,400
	Office		826,533		26,488		83,093		---		936,114
	Industrial and warehouse		540,484		15,132		41,286		---		596,902
	Purchased credit-impaired		10,052		18,085		98,786		---		126,923
	Other commercial real estate		1,177,213		43,454		103,262		113		1,324,042
Total commercial real estate		$	4,641,885	$	191,233	$	565,871	$	251	$	5,399,240

		Credit Risk Profile by FICO score (1)
		750+		650-749		<650		Other (2)		Total
Automobile		$	2,233,439	$	1,900,824	$	682,518	$	117,039	$	4,933,820	(3)

Home equity:
	Secured by first-lien	$	2,618,888	$	1,345,621	$	357,019	$	59,059	$	4,380,587
	Secured by junior-lien		2,046,143		1,375,636		491,226		41,750		3,954,755
Total home equity		$	4,665,031	$	2,721,257	$	848,245	$	100,809	$	8,335,342

Residential mortgage
	Residential mortgage	$	2,561,210	$	1,673,485	$	711,750	$	20,984	$	4,967,429
	Purchased credit-impaired		373		1,303		567		---		2,243
Total residential mortgage		$	2,561,583	$	1,674,788	$	712,317	$	20,984	$	4,969,672

Other consumer
	Other consumer	$	169,792	$	167,389	$	59,815	$	22,526	$	419,522
	Purchased credit-impaired		---		93		47		---		140
Total other consumer		$	169,792	$	167,482	$	59,862	$	22,526	$	419,662

(1)	Reflects currently updated customer credit scores.
(2)	Reflects deferred fees and costs, loans in process, loans to legal entities, etc.
(3)	Included $0.3 billion of loans reflected as loans held for sale related to an automobile securitization expected to be completed in 2013. During the 2013 second quarter, this amount was transferred from loans held for sale to the automobile portfolio based on Management's intent and ability to hold these loans for the foreseeable future.

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

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

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 or discount. When the contractual interest rate is variable, the effective interest rate of the loan changes over time. A specific reserve is established as a component of the ALLL when a 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, 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, 2013 and December 31, 2012:


			Commercial		Commercial						Residential		Other
(dollar amounts in thousands)			and Industrial		Real Estate		Automobile		Home Equity		Mortgage		Consumer		Total

ALLL at September 30, 2013:

	Portion of ALLL balance:

		Attributable to purchased credit-impaired loans	$	1,190	$	916	$	---	$	---	$	57	$	---	$	2,163
		Attributable to loans individually evaluated for impairment		10,340		30,704		676		5,015		12,711		77		59,523
		Attributable to loans collectively evaluated for impairment		250,518		132,902		26,411		119,053		38,484		36,976		604,344
	Total ALLL balance		$	262,048	$	164,522	$	27,087	$	124,068	$	51,252	$	37,053	$	666,030


Loan and Lease Ending Balances at September 30, 2013:

	Portion of loan and lease ending balance:

		Attributable to purchased credit-impaired loans	$	43,638	$	89,246	$	---	$	---	$	2,287	$	127	$	135,298
		Individually evaluated for impairment		115,590		268,406		36,953		165,025		378,334		959		965,267
		Collectively evaluated for impairment		17,175,305		4,515,073		6,280,159		8,181,660		4,926,343		376,728		41,455,268
	Total loans and leases evaluated for impairment		$	17,334,533	$	4,872,725	$	6,317,112	$	8,346,685	$	5,306,964	$	377,814	$	42,555,833



(dollar amounts in thousands)			Commercial and Industrial		Commercial Real Estate		Automobile		Home Equity		Residential Mortgage		Other Consumer		Total

ALLL at December 31, 2012

	Portion of ALLL balance:

		Attributable to purchased credit-impaired loans	$	---	$	---	$	---	$	---	$	---	$	---	$	---
		Attributable to loans individually evaluated for impairment		11,694		31,133		1,446		4,783		14,176		213		63,445
		Attributable to loans collectively evaluated for impairment		229,357		254,236		33,533		113,981		47,482		27,041		705,630
	Total ALLL balance:		$	241,051	$	285,369	$	34,979	$	118,764	$	61,658	$	27,254	$	769,075

Loan and Lease Ending Balances at December 31, 2012

	Portion of loan and lease ending balances:

		Attributable to purchased credit-impaired loans	$	54,472	$	126,923	$	---	$	---	$	2,243	$	140	$	183,778
		Individually evaluated for impairment		119,535		298,891		43,607		117,532		374,526		2,657		956,748
		Collectively evaluated for impairment		16,796,682		4,973,426		4,590,213		8,217,810		4,592,903		416,865		39,587,899
	Total loans and leases evaluated for impairment		$	16,970,689	$	5,399,240	$	4,633,820	$	8,335,342	$	4,969,672	$	419,662	$	40,728,425

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

									Three Months Ended				Nine Months Ended
			September 30, 2013						September 30, 2013				September 30, 2013
					Unpaid						Interest				Interest
			Ending		Principal		Related		Average		Income		Average		Income
(dollar amounts in thousands)			Balance		Balance (5)		Allowance		Balance		Recognized		Balance		Recognized

With no related allowance recorded:
	Commercial and industrial:
		Owner occupied	$	4,144	$	4,185	$	---	$	4,960	$	42	$	4,456	$	126
		Purchased credit-impaired		---		---		---		---		---		---		---
		Other commercial and industrial		18,204		24,912		---		14,254		168		12,389		473
	Total commercial and industrial		$	22,348	$	29,097	$	---	$	19,214	$	210	$	16,845	$	599

	Commercial real estate:
		Retail properties	$	40,698	$	42,255	$	---	$	38,514	$	557	$	47,186	$	1,867
		Multi family		4,197		4,315		---		4,203		63		4,836		220
		Office		9,155		13,819		---		9,183		313		13,168		845
		Industrial and warehouse		7,107		8,228		---		9,282		129		11,467		478
		Purchased credit-impaired		---		---		---		---		---		---		---
		Other commercial real estate		6,212		7,103		---		6,216		159		8,581		382
	Total commercial real estate		$	67,369	$	75,720	$	---	$	67,398	$	1,221	$	85,238	$	3,792

	Automobile		$	---	$	---	$	---	$	---	$	---	$	---	$	---

	Home equity:
		Secured by first-lien	$	---	$	---	$	---	$	---	$	---	$	---	$	---
		Secured by junior-lien		---		---		---		---		---		---		---
	Total home equity		$	---	$	---	$	---	$	---	$	---	$	---	$	---

	Residential mortgage:
		Residential mortgage	$	---	$	---	$	---	$	---	$	---	$	---	$	---
		Purchased credit-impaired		---		---		---		---		---		---		---
	Total residential mortgage		$	---	$	---	$	---	$	---	$	---	$	---	$	---

	Other consumer
		Other consumer	$	---	$	---	$	---	$	---	$	---	$	---	$	---
		Purchased credit-impaired		127		223		---		129		4		139		11
	Total other consumer		$	127	$	223	$	---	$	129	$	4	$	139	$	11

With an allowance recorded:
	Commercial and industrial: (3)
		Owner occupied	$	40,258	$	47,148	$	4,052	$	39,656	$	332	$	42,155	$	1,024
		Purchased credit-impaired		43,638		63,023		1,190		46,942		1,485		50,421		3,775
		Other commercial and industrial		52,984		86,121		6,288		61,563		886		62,320		2,510
	Total commercial and industrial		$	136,880	$	196,292	$	11,530	$	148,161	$	2,703	$	154,896	$	7,309

	Commercial real estate: (4)
		Retail properties	$	87,520	$	115,601	$	6,587	$	67,209	$	448	$	58,928	$	1,303
		Multi family		13,733		14,425		1,891		13,646		159		15,295		490
		Office		54,762		60,471		12,969		49,486		490		46,543		1,291
		Industrial and warehouse		13,167		14,479		1,376		10,381		303		16,535		671
		Purchased credit-impaired		89,246		172,618		916		97,719		3,038		110,124		7,721
		Other commercial real estate		31,855		40,401		7,881		32,579		332		37,436		1,150
	Total commercial real estate		$	290,283	$	417,995	$	31,620	$	271,020	$	4,770	$	284,861	$	12,626

	Automobile		$	36,953	$	38,513	$	676	$	38,732	$	817	$	40,555	$	2,121

	Home equity:
		Secured by first-lien	$	95,268	$	98,189	$	1,940	$	90,952	$	1,062	$	92,723	$	2,953
		Secured by junior-lien		69,757		85,651		3,075		64,553		873		57,743		2,186
	Total home equity		$	165,025	$	183,840	$	5,015	$	155,505	$	1,935	$	150,466	$	5,139

	Residential mortgage (6):
		Residential mortgage	$	378,334	$	3,420,179	$	12,711	$	356,855	$	2,971	$	365,148	$	8,713
		Purchased credit-impaired		2,287		3,619		57		2,169		78		2,232		198
	Total residential mortgage		$	380,621	$	3,423,798	$	12,768	$	359,024	$	3,049	$	367,380	$	8,911

	Other consumer:
		Other consumer	$	959	$	959	$	77	$	2,171	$	29	$	2,378	$	83
		Purchased credit-impaired		---		---		---		---		---		---		---
	Total other consumer		$	959	$	959	$	77	$	2,171	$	29	$	2,378	$	83

									Three Months Ended				Nine Months Ended
			December 31, 2012						September 30, 2012				September 30, 2012
					Unpaid						Interest				Interest
			Ending		Principal		Related		Average		Income		Average		Income
(dollar amounts in thousands)			Balance		Balance (5)		Allowance		Balance		Recognized		Balance		Recognized

With no related allowance recorded:
	Commercial and industrial:
		Owner occupied	$	1,050	$	1,091	$	---	$	4,702	$	1	$	5,310	$	61
		Purchased credit-impaired		54,472		80,294		---		62,740		935		64,627		1,767
		Other commercial and industrial		31,841		54,520		---		9,274		88		8,556		343
	Total commercial and industrial		$	87,363	$	135,905	$	---	$	76,716	$	1,024	$	78,493	$	2,171

	Commercial real estate:
		Retail properties	$	54,216	$	56,569	$	---	$	53,317	$	531	$	52,127	$	2,007
		Multi family		5,719		5,862		---		5,413		85		5,879		278
		Office		20,051		24,843		---		8,695		138		4,631		191
		Industrial and warehouse		15,013		17,476		---		9,779		106		8,045		312
		Purchased credit-impaired		126,923		226,093		---		134,279		2,004		138,858		3,954
		Other commercial real estate		10,479		10,728		---		15,070		140		17,068		412
	Total commercial real estate		$	232,401	$	341,571	$	---	$	226,553	$	3,004	$	226,608	$	7,154


	Home equity:
		Secured by first-lien	$	---	$	---	$	---	$	---	$	---	$	---	$	---
		Secured by junior-lien		---		---		---		---		---		---		---
	Total home equity		$	---	$	---	$	---	$	---	$	---	$	---	$	---

	Residential mortgage:
		Residential mortgage	$	---	$	---	$	---	$	---	$	---	$	---	$	---
		Purchased credit-impaired		2,243		4,104		---		2,293		34		3,947		68
	Total residential mortgage		$	2,243	$	4,104	$	---	$	2,293	$	34	$	3,947	$	68

	Other consumer
		Other consumer	$	---	$	---	$	---	$	---	$	---	$	---	$	---
		Purchased credit-impaired		140		245		---		626		9		782		18
	Total other consumer		$	140	$	245	$	---	$	626	$	9	$	782	$	18

With an allowance recorded:
	Commercial and industrial: (3)
		Owner occupied	$	46,266	$	56,925	$	5,730	$	39,339	$	303	$	38,927	$	998
		Purchased credit-impaired		---		---		---		---		---		---		---
		Other commercial and industrial		40,378		52,996		5,964		56,377		424		77,289		1,906
	Total commercial and industrial		$	86,644	$	109,921	$	11,694	$	95,716	$	727	$	116,216	$	2,904

	Commercial real estate: (4)
		Retail properties	$	65,004	$	73,000	$	8,144	$	109,146	$	848	$	117,069	$	4,032
		Multi family		17,410		18,531		2,662		26,375		280		29,734		1,108
		Office		40,375		45,164		9,214		10,394		52		16,954		210
		Industrial and warehouse		22,450		25,374		1,092		23,854		151		24,205		504
		Purchased credit-impaired		---		---		---		---		---		---		---
		Other commercial real estate		48,174		63,148		10,021		66,999		455		74,020		2,032
	Total commercial real estate		$	193,413	$	225,217	$	31,133	$	236,768	$	1,786	$	261,982	$	7,886

	Automobile		$	43,607	$	44,790	$	1,446	$	39,996	$	782	$	38,022	$	2,398

	Home equity:
		Secured by first-lien	$	76,258	$	80,831	$	1,329	$	59,247	$	730	$	49,559	$	1,769
		Secured by junior-lien		41,274		63,390		3,454		24,698		368		20,463		804
	Total home equity		$	117,532	$	144,221	$	4,783	$	83,945	$	1,098	$	70,022	$	2,573

	Residential mortgage (6):
		Residential mortgage	$	374,526	$	413,583	$	14,176	$	345,677	$	2,722	$	337,876	$	8,525
		Purchased credit-impaired		---		---		---		---		---		---		---
	Total residential mortgage		$	374,526	$	413,583	$	14,176	$	345,677	$	2,722	$	337,876	$	8,525

	Other consumer:
		Other consumer	$	2,657	$	2,657	$	213	$	2,954	$	19	$	4,118	$	78
		Purchased credit-impaired		---		---		---		---		---		---		---
	Total other consumer		$	2,657	$	2,657	$	213	$	2,954	$	19	$	4,118	$	78


(1)	These tables do not include loans fully charged-off.
(2)	All automobile, home equity, residential mortgage, and other consumer impaired loans included in these tables are considered impaired due to their status as a TDR.
(3)	At September 30, 2013, $44,361 thousand of the $136,880 thousand commercial and industrial loans with an allowance recorded were considered impaired due to their status as a TDR. At December 31, 2012, $44,265 thousand of the $86,644 thousand commercial and industrial loans with an allowance recorded were considered impaired due to their status as a TDR.
(4)	At September 30, 2013, $30,293 thousand of the $290,283 thousand commercial real estate loans with an allowance recorded were considered impaired due to their status as a TDR. At December 31, 2012, $31,605 thousand of the $193,413 thousand commercial real estate loans with an allowance recorded were considered impaired due to their status as a TDR.
(5)	The differences between the ending balance and unpaid principal balance amounts represent partial charge-offs.
(6)	At September 30, 2013, $40,738 thousand of the $380,621 thousand residential mortgages loans with an allowance recorded were guaranteed by the U.S. government. At December 31, 2012, $28,695 thousand of the $374,526 thousand residential mortgage loans with an allowance recorded were guaranteed by the U.S. government.

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

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

Principal forgiveness may result from any TDR modification of any concession type. However, the aggregate amount of principal forgiven as a result of loans modified as TDRs during the three-month and nine-month periods ended September 30, 2013 and 2012, was not significant.

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

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

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

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

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

Huntington's ALLL is largely determined by updated risk ratings assigned to commercial loans, updated borrower credit scores on consumer loans, and borrower delinquency history in both the commercial and consumer portfolios. These updated risk ratings and credit scores consider the default history of the borrower, including payment redefaults. As such, the provision for credit losses is impacted primarily by changes in borrower payment performance rather than the TDR classification. TDRs can be classified as either accrual or nonaccrual loans. Nonaccrual TDRs are included in NALs whereas accruing TDRs are excluded from NALs as it is probable that all contractual principal and interest due under the restructured terms will be collected.

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

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

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

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

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

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

The following tables present by class and by the reason for the modification, the number of contracts, post-modification outstanding balance, and the financial effects of the modification for the three-month and nine-month periods ended September 30, 2013 and 2012:

		New Troubled Debt Restructurings During The Three-Month Period Ended⁽¹⁾
		September 30, 2013							September 30, 2012
			Post-modification					Post-modification
			Outstanding					Outstanding
(dollar amounts in thousands)		Number of	Ending		Financial effects		Number of	Ending		Financial effects
		Contracts	Balance		of modification⁽²⁾		Contracts	Balance		of modification⁽²⁾

C&I - Owner occupied:
	Interest rate reduction	2	$	257	$	9	7	$	4,292	$	13
	Amortization or maturity date change	16		3,617		(10)	23		5,271		(49)
	Other	4		2,935		166	5		1,410		(153)
Total C&I - Owner occupied		22	$	6,809	$	165	35	$	10,973	$	(189)

C&I - Other commercial and industrial:
	Interest rate reduction	7	$	19,082	$	(1,491)	6	$	2,029	$	(261)
	Amortization or maturity date change	29		9,978		(1,730)	20		12,393		(432)
	Other	10		4,815		(40)	10		3,523		136
Total C&I - Other commercial and industrial		46	$	33,875	$	(3,261)	36	$	17,945	$	(557)

CRE - Retail properties:
	Interest rate reduction	2	$	378	$	(5)	---	$	---	$	---
	Amortization or maturity date change	10		25,693		4,162	1		116		(2)
	Other	5		8,034		(1,740)	1		276		(1)
Total CRE - Retail properties		17	$	34,105	$	2,417	2	$	392	$	(3)

CRE - Multi family:
	Interest rate reduction	2	$	1,455	$	(3)	8	$	809	$	(22)
	Amortization or maturity date change	5		731		(25)	12		1,216		51
	Other	2		161		6	1		343		(8)
Total CRE - Multi family		9	$	2,347	$	(22)	21	$	2,368	$	21

CRE - Office:
	Interest rate reduction	2	$	129	$	1	1	$	2,039	$	(599)
	Amortization or maturity date change	4		3,032		153	2		9,632		(36)
	Other	2		2,777		160	---		---		---
Total CRE - Office		8	$	5,938	$	314	3	$	11,671	$	(635)

CRE - Industrial and warehouse:
	Interest rate reduction	---	$	---	$	---	1	$	1,600	$	(224)
	Amortization or maturity date change	2		497		(6)	7		31,577		(3,729)
	Other	---		---		---	---		---		---
Total CRE - Industrial and Warehouse		2	$	497	$	(6)	8	$	33,177	$	(3,953)

CRE - Other commercial real estate:
	Interest rate reduction	4	$	4,450	$	(44)	2	$	755	$	(72)
	Amortization or maturity date change	9		2,400		(14)	10		13,454		383
	Other	7		5,111		54	3		199		111
Total CRE - Other commercial real estate		20	$	11,961	$	(4)	15	$	14,408	$	422

Automobile:
	Interest rate reduction	3	$	5	$	---	7	$	51	$	---
	Amortization or maturity date change	458		2,639		(18)	501		3,533		(30)
	Chapter 7 bankruptcy	151		1,096		(33)	1,978		11,666		1,754
Total Automobile		612	$	3,740	$	(51)	2,486	$	15,250	$	1,724

Residential mortgage:
	Interest rate reduction	26	$	2,755	$	36	8	$	1,300	$	59
	Amortization or maturity date change	146		20,578		320	113		16,234		117
	Chapter 7 bankruptcy	92		10,107		134	528		39,352		4,527
	Other	3		327		8	6		663		41
Total Residential mortgage		267	$	33,767	$	498	655	$	57,549	$	4,744

First-lien home equity:
	Interest rate reduction	47	$	4,239	$	487	47	$	6,837	$	1,185
	Amortization or maturity date change	88		5,815		(390)	31		2,928		28
	Chapter 7 bankruptcy	35		2,443		(27)	177		7,461		4,203
Total First-lien home equity		170	$	12,497	$	70	255	$	17,226	$	5,416

Junior-lien home equity:
	Interest rate reduction	4	$	167	$	30	15	$	1,273	$	226
	Amortization or maturity date change	441		14,301		(1,246)	40		1,586		(40)
	Chapter 7 bankruptcy	462		1,787		14,062	1,198		12,366		17,781
	Other	---		---		---	7		285		---
Total Junior-lien home equity		907	$	16,255	$	12,846	1,260	$	15,510	$	17,967

Other consumer:
	Interest rate reduction	1	$	8	$	---	7	$	65	$	9
	Amortization or maturity date change	3		8		---	4		25		---
	Chapter 7 bankruptcy	2		5		---	12		148		---
Total Other consumer		6	$	21	$	---	23	$	238	$	9

Total new troubled debt restructurings		2,086	$	161,812	$	12,966	4,799	$	196,707	$	24,966

		New Troubled Debt Restructurings During The Nine-Month Period Ended⁽¹⁾
		September 30, 2013							September 30, 2012
			Post-modification					Post-modification
			Outstanding					Outstanding
(dollar amounts in thousands)		Number of	Ending		Financial effects		Number of	Ending		Financial effects
		Contracts	Balance		of modification⁽²⁾		Contracts	Balance		of modification⁽²⁾

C&I - Owner occupied:
	Interest rate reduction	16	$	5,532	$	(463)	21	$	9,260	$	145
	Amortization or maturity date change	49		12,631		(22)	70		16,305		522
	Other	12		5,358		255	13		4,181		1,105
Total C&I - Owner occupied		77	$	23,521	$	(230)	104	$	29,746	$	1,772

C&I - Other commercial and industrial:
	Interest rate reduction	19	$	61,838	$	(1,044)	23	$	7,095	$	1
	Amortization or maturity date change	95		47,611		1,665	91		36,403		(1,270)
	Other	24		11,815		171	28		34,524		201
Total C&I - Other commercial and industrial		138	$	121,264	$	792	142	$	78,022	$	(1,068)

CRE - Retail properties:
	Interest rate reduction	4	$	1,116	$	(8)	8	$	6,027	$	957
	Amortization or maturity date change	16		26,596		4,160	11		3,166		(23)
	Other	10		17,758		(557)	1		276		(1)
Total CRE - Retail properties		30	$	45,470	$	3,595	20	$	9,469	$	933

CRE - Multi family:
	Interest rate reduction	8	$	4,106	$	7	10	$	1,143	$	(27)
	Amortization or maturity date change	13		1,966		(18)	25		2,913		(20)
	Other	4		8,043		(2)	7		7,961		668
Total CRE - Multi family		25	$	14,115	$	(13)	42	$	12,017	$	621

CRE - Office:
	Interest rate reduction	6	$	6,209	$	1,657	4	$	4,155	$	(236)
	Amortization or maturity date change	11		7,375		175	6		11,208		327
	Other	4		3,059		159	3		306		---
Total CRE - Office		21	$	16,643	$	1,991	13	$	15,669	$	91

CRE - Industrial and warehouse:
	Interest rate reduction	---	$	---	$	---	2	$	4,600	$	(220)
	Amortization or maturity date change	7		1,590		(9)	13		34,350		(3,850)
	Other	1		5,867		---	---		---		---
Total CRE - Industrial and Warehouse		8	$	7,457	$	(9)	15	$	38,950	$	(4,070)

CRE - Other commercial real estate:
	Interest rate reduction	13	$	5,940	$	8	9	$	2,792	$	(288)
	Amortization or maturity date change	13		3,100		(12)	38		66,007		4,145
	Other	8		5,463		53	5		9,634		(1,893)
Total CRE - Other commercial real estate		34	$	14,503	$	49	52	$	78,433	$	1,964

Automobile:
	Interest rate reduction	11	$	78	$	---	28	$	271	$	4
	Amortization or maturity date change	1,146		6,550		(52)	1,401		9,813		(73)
	Chapter 7 bankruptcy	864		5,384		344	1,978		11,666		1,754
	Other	---		---		---	---		---		---
Total Automobile		2,021	$	12,012	$	292	3,407	$	21,750	$	1,685

Residential mortgage:
	Interest rate reduction	58	$	11,228	$	---	12	$	7,466	$	10
	Amortization or maturity date change	323		43,589		389	318		42,326		1,051
	Chapter 7 bankruptcy	157		16,697		577	528		39,352		4,527
	Other	15		1,612		38	6		663		41
Total Residential mortgage		553	$	73,126	$	1,004	864	$	89,807	$	5,629

First-lien home equity:
	Interest rate reduction	106	$	9,553	$	908	177	$	21,841	$	3,666
	Amortization or maturity date change	165		11,365		(959)	57		5,825		23
	Chapter 7 bankruptcy	93		5,897		587	177		7,461		4,203
	Other	---		---		---	---		---		---
Total First-lien home equity		364	$	26,815	$	536	411	$	35,127	$	7,892

Junior-lien home equity:
	Interest rate reduction	20	$	916	$	155	52	$	2,749	$	443
	Amortization or maturity date change	981		35,672		(3,613)	59		2,458		(57)
	Chapter 7 bankruptcy	642		4,044		17,181	1,198		12,366		17,781
	Other	---		---		---	7		288		---
Total Junior-lien home equity		1,643	$	40,632	$	13,723	1,316	$	17,861	$	18,167

Other consumer:
	Interest rate reduction	4	$	227	$	42	12	$	228	$	23
	Amortization or maturity date change	8		72		5	15		352		30
	Chapter 7 bankruptcy	19		285		56	12		148		---
	Other	---		---		---	---		---		---
Total Other consumer		31	$	584	$	103	39	$	728	$	53

Total new troubled debt restructurings		4,945	$	396,142	$	21,833	6,425	$	427,579	$	33,669

(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.

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

The following tables present TDRs that have defaulted within one year of modification during the three-month and nine-month periods ended September 30, 2013 and 2012:

		Troubled Debt Restructurings That Have Redefaulted⁽¹⁾
		Within One Year Of Modification During The Three Months Ended
		September 30, 2013			September 30, 2012

(dollar amounts in thousands)		Number of	Ending		Number of	Ending
		Contracts	Balance		Contracts	Balance


C&I - Owner occupied:
	Interest rate reduction	---	$	---	2	$	239
	Amortization or maturity date change	3		349	4		489
	Other	---		---	---		---
Total C&I - Owner occupied		3	$	349	6	$	728

C&I - Other commercial and industrial:
	Interest rate reduction	---	$	---	---	$	---
	Amortization or maturity date change	7		263	3		84
	Other	---		---	---		---
Total C&I - Other commercial and industrial		7	$	263	3	$	84

CRE - Retail Properties:
	Interest rate reduction	---	$	---	---	$	---
	Amortization or maturity date change	---		---	---		---
	Other	---		---	---		---
Total CRE - Retail properties		---	$	---	---	$	---

CRE - Multi family:
	Interest rate reduction	---	$	---	---	$	---
	Amortization or maturity date change	2		225	---		---
	Other	---		---	---		---
Total CRE - Multi family		2	$	225	---	$	---

CRE - Office:
	Interest rate reduction	---	$	---	---	$	---
	Amortization or maturity date change	---		---	---		---
	Other	---		---	---		---
Total CRE - Office		---	$	---	---	$	---

CRE - Industrial and Warehouse:
	Interest rate reduction	---	$	---	---	$	---
	Amortization or maturity date change	1		361	---		---
	Other	1		726	---		---
Total CRE - Industrial and Warehouse		2	$	1,087	---	$	---

CRE - Other commercial real estate:
	Interest rate reduction	---	$	---	---	$	---
	Amortization or maturity date change	2		725	---		---
	Other	---		---	---		---
Total CRE - Other commercial real estate		2	$	725	---	$	---

Automobile:
	Interest rate reduction	---	$	---	1	$	---
	Amortization or maturity date change	8		93	20		---
	Chapter 7 bankruptcy	17		107	---		---
	Other	---		---	---		---
Total Automobile		25	$	200	21	$	---

Residential mortgage:
	Interest rate reduction	---	$	---	---	$	---
	Amortization or maturity date change	19		2,930	18		2,422
	Chapter 7 bankruptcy	10		658	17		1,760
	Other	---		---	1		106
Total Residential mortgage		29	$	3,588	36	$	4,288

First-lien home equity:
	Interest rate reduction	---	$	---	---	$	---
	Amortization or maturity date change	1		14	4		489
	Chapter 7 bankruptcy	5		193	---		---
	Other	---		---	---		---
Total First-lien home equity		6	$	207	4	$	489

Junior-lien home equity:
	Interest rate reduction	1	$	---	---	$	---
	Amortization or maturity date change	2		102	1		20
	Chapter 7 bankruptcy	6		80	---		---
	Other	---		---	---		---
Total Junior-lien home equity		9	$	182	1	$	20

Other consumer:
	Interest rate reduction	---	$	---	---	$	---
	Amortization or maturity date change	---		---	---		---
	Chapter 7 bankruptcy	1		94	---		---
	Other	---		---	---		---
Total Other consumer		1	$	94	---	$	---

Total troubled debt restructurings with subsequent redefault		86	$	6,920	71	$	5,609

		Troubled Debt Restructurings That Have Redefaulted⁽¹⁾
		Within One Year of Modification During The Nine Months Ended
		September 30, 2013			September 30, 2012


(dollar amounts in thousands)		Number of	Ending		Number of	Ending
		Contracts	Balance		Contracts	Balance


C&I - Owner occupied:
	Interest rate reduction	---	$	---	3	$	1,237
	Amortization or maturity date change	7		820	10		1,085
	Other	7		1,203	---		---
Total C&I - Owner occupied		14	$	2,023	13	$	2,322

C&I - Other commercial and industrial:
	Interest rate reduction	---	$	---	3	$	401
	Amortization or maturity date change	16		379	12		558
	Other	---		---	3		387
Total C&I - Other commercial and industrial		16	$	379	18	$	1,346

CRE - Retail Properties:
	Interest rate reduction	---	$	---	---	$	---
	Amortization or maturity date change	3		835	2		372
	Other	---		---	---		---
Total CRE - Retail properties		3	$	835	2	$	372

CRE - Multi family:
	Interest rate reduction	---	$	---	2	$	1,236
	Amortization or maturity date change	2		225	1		117
	Other	---		---	---		---
Total CRE - Multi family		2	$	225	3	$	1,353

CRE - Office:
	Interest rate reduction	---	$	---	---	$	---
	Amortization or maturity date change	2		1,131	---		---
	Other	---		---	---		---
Total CRE - Office		2	$	1,131	---	$	---

CRE - Industrial and Warehouse:
	Interest rate reduction	---	$	---	---	$	---
	Amortization or maturity date change	1		361	---		---
	Other	1		726	---		---
Total CRE - Industrial and Warehouse		2	$	1,087	---	$	---

CRE - Other commercial real estate:
	Interest rate reduction	---	$	---	1	$	898
	Amortization or maturity date change	3		774	4		646
	Other	1		5	---		---
Total CRE - Other commercial real estate		4	$	779	5	$	1,544

Automobile:
	Interest rate reduction	1	$	112	4	$	---
	Amortization or maturity date change	28		294	123		---
	Chapter 7 bankruptcy	115		461	---		---
	Other	---		---	---		---
Total Automobile		144	$	867	127	$	---

Residential mortgage:
	Interest rate reduction	---	$	---	1	$	29
	Amortization or maturity date change	56		8,317	76		10,866
	Chapter 7 bankruptcy	46		3,826	17		1,761
	Other	2		418	5		523
Total Residential mortgage		104	$	12,561	99	$	13,179

First-lien home equity:
	Interest rate reduction	---	$	---	9	$	821
	Amortization or maturity date change	1		14	5		503
	Chapter 7 bankruptcy	11		942	---		---
	Other	---		---	---		---
Total First-lien home equity		12	$	956	14	$	1,324

Junior-lien home equity:
	Interest rate reduction	1	$	---	2	$	112
	Amortization or maturity date change	3		159	3		99
	Chapter 7 bankruptcy	26		649	---		---
	Other	---		---	---		---
Total Junior-lien home equity		30	$	808	5	$	211

Other consumer:
	Interest rate reduction	---	$	---	1	$	---
	Amortization or maturity date change	---		---	3		---
	Chapter 7 bankruptcy	2		96	---		---
	Other	---		---	---		---
Total Other consumer		2	$	96	4	$	---

Total troubled debt restructurings with subsequent redefault		335	$	21,747	290	$	21,651

(1)	Subsequent redefault is defined as a payment redefault within 12 months of the restructuring date. Payment redefault is defined as 90-days past due for any loan in any portfolio or class. Any loan in any portfolio or class may be considered to be in payment redefault prior to the guidelines noted above when collection of principal or interest is in doubt.

At September 30, 2013, the Bank has access to the Federal Reserve's discount window and advances from the FHLB – Cincinnati. As of September 30, 2013, these borrowings and advances are secured by $19.2 billion of loans and securities.