Annual report pursuant to Section 13 and 15(d)

Loans sales and securitizations (Tables)

v2.4.1.9
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)