Huntington Bancshares Incorporated Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Loans sales and securitizations (Tables)

Loans sales and securitizations (Tables)

3 Months Ended

Sep. 30, 2012

Loan Sales and Securitizations [Abstract]

Summarizes activity relating to residential mortgage loans sold with servicing retained

The following table summarizes activity relating to residential mortgage loans sold with servicing retained for the three-month and nine-month periods ended September 30, 2012 and 2011:

			Three Months Ended				Nine Months Ended
			September 30,				September 30,
(dollar amounts in thousands)			2012		2011		2012		2011
Residential mortgage loans sold with servicing retained		$	889,769	$	515,179	$	2,746,068	$	2,264,697
Pretax gains resulting from above loan sales (1)			30,195		12,737		83,849		57,982

(1)	Recorded in other noninterest income.

Summarizes activity relating to residential mortgage loans sold with servicing retained using the fair value method

The following tables summarize the changes in MSRs recorded using either the fair value method or the amortization method for the three-month and nine-month periods ended September 30, 2012 and 2011:

			Three Months Ended				Nine Months Ended
Fair Value Method:			September 30,				September 30,
(dollar amounts in thousands)			2012		2011		2012		2011
Fair value, beginning of period		$	45,061	$	104,997	$	65,001	$	125,679
Change in fair value during the period due to:
	Time decay (1)		(633)		(1,222)		(2,282)		(3,987)
	Payoffs (2)		(3,043)		(4,614)		(11,334)		(15,013)
	Changes in valuation inputs or assumptions (3)		(4,764)		(25,337)		(14,764)		(32,855)
Fair value, end of period:		$	36,621	$	73,824	$	36,621	$	73,824

(1)	Represents decrease in value due to passage of time, including the impact from both regularly scheduled loan principal payments and partial loan paydowns.
(2)	Represents decrease in value associated with loans that paid off during the period.
(3)	Represents change in value resulting primarily from market-driven changes in interest rates and prepayment spreads.

Summarizes activity relating to residential mortgage loans sold with servicing retained using the amortization method


		Three Months Ended				Nine Months Ended
Amortization Method:		September 30,				September 30,
(dollar amounts in thousands)		2012		2011		2012		2011
Carrying value, beginning of period	$	83,236	$	84,742	$	72,434	$	70,516
New servicing assets created		7,725		4,572		26,081		24,549
Impairment (charge) / recovery		(14,779)		(14,057)		(13,886)		(14,057)
Amortization and other		(4,729)		(3,804)		(13,176)		(9,555)
Carrying value, end of period	$	71,453	$	71,453	$	71,453	$	71,453
Fair value, end of period	$	71,453	$	71,467	$	71,453	$	71,467

Summary of key assumptions and the sensitivity of the servicing rights value to changes in the assumptions

For MSRs under the fair value method, a summary of key assumptions and the sensitivity of the MSR value at September 30, 2012, and December 31, 2011, to changes in these assumptions follows:

	September 30, 2012							December 31, 2011
					Decline in fair value due to						Decline in fair value due to
					10%		20%				10%		20%
					adverse		adverse				adverse		adverse
(dollar amounts in thousands)		Actual			change		change	Actual			change		change
Constant prepayment rate		22.1	%	$	(2,768)	$	(5,406)	20.11	%	$	(4,720)	$	(9,321)
Spread over forward interest rate swap rates		1,291	bps		(1,314)		(2,628)	650	bps		(1,511)		(3,023)

For MSRs under the amortization method, a summary of key assumptions and the sensitivity of the MSR value at September 30, 2012, and December 31, 2011, to changes in these assumptions follows:

	September 30, 2012							December 31, 2011
					Decline in fair value due to						Decline in fair value due to
					10%		20%				10%		20%
					adverse		adverse				adverse		adverse
(dollar amounts in thousands)		Actual			change		change	Actual			change		change
Constant prepayment rate		19.65	%	$	(4,723)	$	(9,105)	15.92	%	$	(3,679)	$	(7,160)
Spread over forward interest rate swap rates		943	bps		(2,429)		(4,858)	953	bps		(2,605)		(5,211)

A summary of key assumptions and the sensitivity of the automobile loan servicing rights value at September 30, 2012, and December 31, 2011, to changes in these assumptions follows:

	September 30, 2012							December 31, 2011
					Decline in fair value due to						Decline in fair value due to
					10%		20%				10%		20%
					adverse		adverse				adverse		adverse
(dollar amounts in thousands)		Actual			change		change	Actual			change		change
Constant prepayment rate		1.17	%	$	(1,119)	$	(1,971)	1.30	%	$	(362)	$	(708)
Spread over forward interest rate swap rates		80	bps		(13)		(26)	NA	bps		NA		NA

Summarizes changes in carrying value of automobile loan servicing rights

Changes in the carrying value of automobile loan servicing rights for the three-month and nine-month periods ended September 30, 2012 and 2011, and the fair value at the end of each period were as follows:

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
(dollar amounts in thousands)		2012		2011		2012		2011
Carrying value, beginning of period	$	26,737	$	49	$	13,377	$	97
New servicing assets created		2,854		16,039		22,737		16,039
Amortization and other		(3,912)		(743)		(10,435)		(791)
Carrying value, end of period	$	25,679	$	15,345	$	25,679	$	15,345

Fair value, end of period	$	26,635	$	16,039	$	26,635	$	16,039

- Definition

Tabular disclosure of a sensitivity analysis or stress test showing the hypothetical effect on the fair value of the transferor's interests in transferred financial assets (including any servicing assets or servicing liabilities) of two or more unfavorable variations from the expected levels for each key assumption that is reported, independently determined from any change in another key assumption, and a description of the objectives, methodology, and limitations of the sensitivity analysis or stress test.

+ References + Details

- Definition

Tabular disclosure of the activity in the balance of servicing assets subsequently measured at amortized value (including a description of where changes in carrying value are reported in the statement of income for each period for which results of operations are presented), including but not limited to, the following: beginning and ending balances, additions (through purchases of servicing assets and servicing assets that result from transfers of financial assets), disposals, amortization, application of valuation allowances, other-than-temporary impairments, and other changes that affect the balance along with a description of those changes.

+ References + Details

- Definition

Tabular disclosure of the activity in the balance of servicing assets (including a description of where changes in fair value are reported in the statement of income for each period for which results of operations are presented), including but not limited to, the following: beginning and ending balances, additions (for instance, through purchases of servicing assets), disposals, changes in fair value during the period resulting from changes in inputs or assumptions used in the valuation model, other changes in fair value along with a description of those changes, and other changes that affect the balance along with a description of those changes.

+ References + Details