|
Loans sales and securitizations (Tables)
|
12 Months Ended |
|
Dec. 31, 2013
|
| Loan Sales and Securitizations [Abstract] |
|
| Summarizes activity relating to loans securitized sold with servicing retained |
Residential Mortgage Portfolio
The following table summarizes activity relating to residential mortgage loans sold with servicing retained for the years ended December 31, 2013, 2012, and 2011:
| |
|
|
Year Ended December 31, |
| (dollar amounts in thousands) |
|
2013 |
|
|
2012 |
|
|
2011 |
| Residential mortgage loans sold with servicing retained |
$ |
3,221,239 |
|
$ |
3,954,762 |
|
$ |
3,078,475 |
| Pretax gains (1) |
|
102,935 |
|
|
128,408 |
|
|
77,591 |
| |
|
|
|
|
|
|
|
|
|
| (1) |
Recorded in mortgage banking income. |
| (dollar amounts in thousands) |
|
2013 (1) |
|
|
2012 |
|
|
2011 |
| Automobile loans sold with servicing retained |
$ |
--- |
|
$ |
169,324 |
|
$ |
--- |
| Automobile loans securitized with servicing retained |
|
--- |
|
|
2,300,018 |
|
|
1,020,146 |
| Pretax gains (2) |
|
--- |
|
|
42,251 |
|
|
15,454 |
| |
|
|
|
|
|
|
|
|
|
| (1) |
Huntington did not sell or securitize any automobile loans in 2013. |
| (2) |
Recorded in noninterest income |
|
| Summarizes activity relating to loans sold with servicing retained using the fair value method |
| Fair Value Method |
|
|
|
|
|
| (dollar amounts in thousands) |
|
2013 |
|
|
2012 |
| Fair value, beginning of year |
$ |
35,202 |
|
$ |
65,001 |
| Change in fair value during the period due to: |
|
|
|
|
|
| |
Time decay (1) |
|
(2,648) |
|
|
(2,881) |
| |
Payoffs (2) |
|
(11,851) |
|
|
(14,389) |
| |
Changes in valuation inputs or assumptions (3) |
|
13,533 |
|
|
(12,529) |
| Fair value, end of year |
$ |
34,236 |
|
$ |
35,202 |
| Weighted-average life (years) |
|
4.2 |
|
|
3.2 |
| |
|
|
|
|
|
|
| (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 speeds. |
|
| Summarizes activity relating to loans sold with servicing retained using the amortization method |
| |
|
|
|
|
|
|
| Amortization Method |
|
|
|
|
|
| (dollar amounts in thousands) |
|
2013 |
|
|
2012 |
| Carrying value, beginning of year |
$ |
85,545 |
|
$ |
72,434 |
| New servicing assets created |
|
34,743 |
|
|
36,123 |
| Impairment recovery (charge) |
|
22,023 |
|
|
(4,374) |
| Amortization and other |
|
(14,247) |
|
|
(18,638) |
| Carrying value, end of year |
$ |
128,064 |
|
$ |
85,545 |
| Fair value, end of year |
$ |
143,304 |
|
$ |
85,612 |
| |
|
|
|
|
|
|
| (dollar amounts in thousands) |
|
2013 |
|
|
2012 |
| Carrying value, beginning of year |
$ |
35,606 |
|
$ |
13,377 |
| New servicing assets created |
|
--- |
|
|
38,043 |
| Impairment charge |
|
--- |
|
|
(75) |
| Amortization and other |
|
(17,934) |
|
|
(15,739) |
| Carrying value, end of year |
$ |
17,672 |
|
$ |
35,606 |
| |
|
|
|
|
|
|
| Fair value, end of year |
$ |
18,193 |
|
$ |
36,470 |
| Weighted-average life (years) |
|
3.6 |
|
|
4.3 |
| |
|
|
|
|
|
|
| (dollar amounts in thousands) |
|
2013 |
|
|
2012 |
| Carrying value, beginning of year |
$ |
15,147 |
|
$ |
12,022 |
| New servicing assets created |
|
6,105 |
|
|
6,947 |
| Amortization and other |
|
(4,387) |
|
|
(3,822) |
| Carrying value, end of year |
$ |
16,865 |
|
$ |
15,147 |
| |
|
|
|
|
|
|
| Fair value, end of year |
$ |
16,865 |
|
$ |
15,147 |
| |
|
|
|
|
|
|
| Weighted-average life (years) |
|
3.5 |
|
|
3.5 |
|
| 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 to changes in these assumptions at December 31, 2013, and 2012 follows:
| |
|
December 31, 2013 |
|
December 31, 2012 |
| |
|
|
|
|
|
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 (annualized)
|
|
11.90 |
% |
|
$ |
(1,935) |
|
$ |
(3,816) |
|
19.52 |
% |
|
$ |
(2,608) |
|
$ |
(5,051) |
| Spread over forward interest rate swap rates |
|
1,069 |
bps |
|
|
(1,376) |
|
|
(2,753) |
|
1,288 |
bps |
|
|
(1,290) |
|
|
(2,580) |
For MSRs under the amortization method, a summary of key assumptions and the sensitivity of the MSR value to changes in these assumptions at December 31, 2013 and 2012 follows:
| |
|
December 31, 2013 |
|
December 31, 2012 |
| |
|
|
|
|
|
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 (annualized)
|
|
6.70 |
% |
|
$ |
(6,813) |
|
$ |
(12,977) |
|
15.45 |
% |
|
$ |
(4,936) |
|
$ |
(9,451) |
| Spread over forward interest rate swap rates |
|
940 |
bps |
|
|
(6,027) |
|
|
(12,054) |
|
940 |
bps |
|
|
(3,060) |
|
|
(6,119) |
A summary of key assumptions and the sensitivity of the automobile loan servicing rights value to changes in these assumptions at December 31, 2013 and 2012 follows:
| |
|
December 31, 2013 |
|
December 31, 2012 |
| |
|
|
|
|
|
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 (annualized)
|
|
14.65 |
% |
|
$ |
(584) |
|
$ |
(1,183) |
|
13.80 |
% |
|
$ |
(880) |
|
$ |
(1,771) |
| Spread over forward interest rate swap rates |
|
500 |
bps |
|
|
(7) |
|
|
(15) |
|
500 |
bps |
|
|
(18) |
|
|
(36) |
| |
|
December 31, 2013 |
|
December 31, 2012 |
| |
|
|
|
|
|
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 (annualized)
|
|
5.90 |
% |
|
$ |
(221) |
|
$ |
(438) |
|
6.40 |
% |
|
$ |
(201) |
|
$ |
(398) |
| Discount rate |
|
1,500 |
bps |
|
|
(446) |
|
|
(873) |
|
1,500 |
bps |
|
|
(374) |
|
|
(731) |
|