|
Loans sales and securitizations (Tables)
|
12 Months Ended |
|
Dec. 31, 2014
|
| 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, 2014, 2013, and 2012:
|
|
|
Year Ended December 31, |
| (dollar amounts in thousands) |
|
2014 |
|
|
2013 |
|
|
2012 |
| Residential mortgage loans sold with servicing retained |
$ |
2,330,060 |
|
$ |
3,221,239 |
|
$ |
3,954,762 |
| Pretax gains resulting from above loan sales (1) |
|
57,590 |
|
|
102,935 |
|
|
128,408 |
|
|
|
|
|
|
|
|
|
|
| (1) |
Recorded in mortgage banking income. |
|
|
|
Year Ended December 31, |
| (dollar amounts in thousands) |
|
|
2014 (1) |
|
|
2013 (1) |
|
|
2012 |
| Automobile loans sold with servicing retained |
$ |
--- |
|
$ |
--- |
|
$ |
169,324 |
| Automobile loans securitized with servicing retained |
|
--- |
|
|
--- |
|
|
2,300,018 |
| Pretax gains (2) |
|
--- |
|
|
--- |
|
|
42,251 |
|
|
|
|
|
|
|
|
|
|
| (1) |
Huntington did not sell or securitize any automobile loans in 2014 or 2013. |
| (2) |
Recorded in noninterest income |
|
|
|
Year Ended December 31, |
| (dollar amounts in thousands) |
|
2014 |
|
|
2013 |
|
|
2012 |
| SBA loans sold with servicing retained |
$ |
214,760 |
|
$ |
178,874 |
|
$ |
209,540 |
| Pretax gains resulting from above loan sales (1) |
|
24,579 |
|
|
19,556 |
|
|
22,916 |
|
|
|
|
|
|
|
|
|
|
| (1) |
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) |
|
2014 |
|
|
2013 |
| Fair value, beginning of year |
$ |
34,236 |
|
$ |
35,202 |
| Change in fair value during the period due to: |
|
|
|
|
|
|
Time decay (1) |
|
(2,232) |
|
|
(2,648) |
|
Payoffs (2) |
|
(5,814) |
|
|
(11,851) |
|
Changes in valuation inputs or assumptions (3) |
|
(3,404) |
|
|
13,533 |
| Fair value, end of year |
$ |
22,786 |
|
$ |
34,236 |
| Weighted-average life (years) |
|
4.6 |
|
|
4.2 |
|
|
|
|
|
|
|
| (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) |
|
2014 |
|
|
2013 |
| Carrying value, beginning of year |
$ |
128,064 |
|
$ |
85,545 |
| New servicing assets created |
|
24,629 |
|
|
34,743 |
| Servicing assets acquired |
|
3,505 |
|
|
--- |
| Impairment recovery (charge) |
|
(7,330) |
|
|
22,023 |
| Amortization and other |
|
(16,056) |
|
|
(14,247) |
| Carrying value, end of year |
$ |
132,812 |
|
$ |
128,064 |
| Fair value, end of year |
$ |
133,049 |
|
$ |
143,304 |
|
|
|
|
|
|
|
| (dollar amounts in thousands) |
|
2014 |
|
|
2013 |
| Carrying value, beginning of year |
$ |
17,672 |
|
$ |
35,606 |
| New servicing assets created |
|
--- |
|
|
--- |
| Amortization and other |
|
(10,774) |
|
|
(17,934) |
| Carrying value, end of year |
$ |
6,898 |
|
$ |
17,672 |
|
|
|
|
|
|
|
| Fair value, end of year |
$ |
6,948 |
|
$ |
18,193 |
| Weighted-average life (years) |
|
2.6 |
|
|
3.6 |
|
|
|
|
|
|
|
| (dollar amounts in thousands) |
|
2014 |
|
|
2013 |
| Carrying value, beginning of year |
$ |
16,865 |
|
$ |
15,147 |
| New servicing assets created |
|
7,269 |
|
|
6,105 |
| Amortization and other |
|
(5,598) |
|
|
(4,387) |
| Carrying value, end of year |
$ |
18,536 |
|
$ |
16,865 |
|
|
|
|
|
|
|
| Fair value, end of year |
$ |
20,495 |
|
$ |
16,865 |
|
|
|
|
|
|
|
| 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, 2014, and 2013 follows:
|
|
December 31, 2014 |
|
December 31, 2013 |
|
|
|
|
|
|
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)
|
|
15.60 |
% |
|
$ |
(1,176) |
|
$ |
(2,248) |
|
11.90 |
% |
|
$ |
(1,935) |
|
$ |
(3,816) |
| Spread over forward interest rate swap rates |
|
546 |
bps |
|
|
(699) |
|
|
(1,355) |
|
1,069 |
bps |
|
|
(1,376) |
|
|
(2,753) |
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, 2014 and 2013 follows:
|
|
December 31, 2014 |
|
December 31, 2013 |
|
|
|
|
|
|
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) |
|
11.40 |
% |
|
$ |
(5,289) |
|
$ |
(10,164) |
|
6.70 |
% |
|
$ |
(6,813) |
|
$ |
(12,977) |
| Spread over forward interest rate swap rates |
|
856 |
bps |
|
|
(4,343) |
|
|
(8,403) |
|
940 |
bps |
|
|
(6,027) |
|
|
(12,054) |
A summary of key assumptions and the sensitivity of the automobile loan servicing rights value to changes in these assumptions at December 31, 2014 and 2013 follows:
|
|
December 31, 2014 |
|
December 31, 2013 |
|
|
|
|
|
|
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)
|
|
14.62 |
% |
|
$ |
(305) |
|
$ |
(496) |
|
14.65 |
% |
|
$ |
(584) |
|
$ |
(1,183) |
| Spread over forward interest rate swap rates |
|
500 |
bps |
|
|
(2) |
|
|
(4) |
|
500 |
bps |
|
|
(7) |
|
|
(15) |
|
|
December 31, 2014 |
|
December 31, 2013 |
|
|
|
|
|
|
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)
|
|
5.60 |
% |
|
$ |
(211) |
|
$ |
(419) |
|
5.90 |
% |
|
$ |
(221) |
|
$ |
(438) |
| Discount rate |
|
1,500 |
bps |
|
|
(563) |
|
|
(1,102) |
|
1,500 |
bps |
|
|
(446) |
|
|
(873) |
|