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Huntington Preferred Capital Inc. Prefer (HPCCP) filed Quarterly Report for the period ended 2011-09-30.
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This is the annual revenues and earnings per share of HPCCP over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of HPCCP.
Highlight of Business Operations:
The ALPL consists of two components: (1) the transaction reserve, which includes specific reserves related to loan participation interests considered to be impaired and loan participation interests 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 loan participation interests with similar characteristics and (2) an estimate of loss based on an impairment review of each CRE loan participation interest greater than $1 million. For the CRE portfolio, the estimate of loss based on pools of loan participation interests 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 and LGD factors 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 loan participation interests 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 calculation period.For the nine-months ended September 30, 2011 and 2010, interest and fee income was $110.2 million and $115.6 million, respectively. As shown in Table 4, the decrease in interest and fee income was the result of lower earning asset balances, as loan yields remained relatively flat. At September 30, 2011, December 31, 2010, and September 30, 2010, approximately 77%, 75%, and 74%, respectively, of the portfolio was comprised of variable interest rate loan participations.
Underlying CRE loan participation interests are placed on nonaccrual status at 90-days past due. Underlying first-lien and second-lien loan participation interests in consumer and residential real estate loans are placed on nonaccrual status at 150-days past due and 120-days past due, respectively. When interest accruals are suspended, accrued interest income is reversed with current year accruals charged to earnings and prior year amounts generally charged-off as a credit loss. When, in Management s judgment, the borrower s ability to make required principal and interest payments has resumed and collectability is no longer in doubt, the loan participation interest is returned to accrual status.
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