Huntington National Bank 2011 Annual Report Download - page 177

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Changes in the carrying value of automobile loan servicing rights for the years ended December 31, 2011
and 2010, and the fair value at the end of each period were as follows:
2011 2010
(dollar amounts in thousands)
Carrying value, beginning of year .................................... $97$12,912
New servicing assets created ........................................ 16,039 —
Amortization and other ............................................ (2,759) (12,815)(1)
Carrying value, end of year ........................................ $13,377 $97
Fair value, end of year ............................................ $13,428 $ 278
(1) Included a $12.4 million reduction related to the consolidation of an automobile securitization trust upon the
adoption of amended accounting guidance on January 1, 2010. See Consolidated VIEs (2009 Automobile
Trust) in Note 21.
Servicing income, net of amortization of capitalized servicing assets, amounted to $2.0 million, $2.5 million
and $6.4 million for the years ended December 31, 2011, 2010 and 2009, respectively. The unpaid principal
balance of automobile loans serviced for third parties was $0.9 billion, $0.1 billion, and $1.1 billion at
December 31, 2011, 2010 and 2009, respectively.
7. GOODWILL AND OTHER INTANGIBLE ASSETS
In late 2010, Huntington reorganized its internal reporting structure. Business segments are based on
segment leadership structure, which reflects how segment performance is monitored and assessed. The primary
changes to the business segments were: (1) the AFDS and Commercial Real Estate segments were combined into
one segment, (2) the Home Lending area moved from the Retail and Business Banking segment to the PFG
segment, (3) the PFG segment was renamed Wealth Advisors, Government Finance, and Home Lending,
(WGH), (4) certain capital market businesses moved from the former PFG operating segment to the Commercial
Banking operating segment, and (5) the insurance business area moved from WGH to Treasury / Other. Goodwill
was assigned to the new reporting units affected using a relative fair value allocation.
No segments were changed and no reallocation of goodwill occurred in 2011.
A rollforward of goodwill by business segment for the years ended December 31, 2011 and 2010, including
the reallocation noted above, was as follows:
Retail &
Business
Banking
Regional &
Commercial
Banking AFCRE WGH
Treasury/
Other
Huntington
Consolidated
(dollar amounts in thousands)
Balance, January 1, 2010 ............... $310,138 $ 5,008 $ — $124,283 $ 4,839 $444,268
Reallocation of goodwill ............... (23,314) 11,161 — (25,332) 37,485 —
Balance, December 31, 2010 ............. 286,824 16,169 — 98,951 42,324 444,268
Adjustments / Reallocation of goodwill . . . — — — — — —
Balance, December 31, 2011 $286,824 $16,169 $ — $ 98,951 $42,324 $444,268
Goodwill is not amortized but is evaluated for impairment on an annual basis at October 1st of each year or
whenever events or changes in circumstances indicate that the carrying value may not be recoverable. No
impairment was recorded in 2011.
163