Huntington National Bank 2014 Annual Report Download - page 186

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The total notional value of these derivative financial instruments at December 31, 2014 and 2013, was $0.6 billion and $0.5
billion, respectively. The total notional amount at December 31, 2014 corresponds to trading assets with a fair value of $3.0 million
and no trading liabilities. Net trading gains (losses) related to MSR hedging for the years ended December 31, 2014, 2013, and 2012,
were $7.1 million, $(25.0) million, and $31.3 million, respectively. These amounts are included in mortgage banking income in the
Consolidated Statements of Income.
19. VIEs
Consolidated VIEs
Consolidated VIEs at December 31, 2014 consisted of automobile loan and lease securitization trusts formed in 2009 and 2006.
Huntington has determined the trusts are VIEs. Huntington has concluded that it is the primary beneficiary of these trusts because it
has the power to direct the activities of the entity that most significantly affect the entity’s economic performance and it has either the
obligation to absorb losses of the entity that could potentially be significant to the VIE or the right to receive benefits from the entity
that could potentially be significant to the VIE. During the 2014 first quarter, Huntington cancelled the 2009 and 2006 Automobile
Trusts. As a result, any remaining assets at the time of the cancellation are no longer part of the trusts.
The following tables present the carrying amount and classification of the consolidated trusts’ assets and liabilities that were
included in the Consolidated Balance Sheets at December 31, 2014 and 2013:
2009 2006 Other
Automobile Automobile Consolidated
Trust Trust Trusts Total
(dollar amounts in thousands) December 31, 2014
Assets:
Cash $ --- $ --- $ --- $ ---
Loans and leases --- --- --- ---
Allowance for loan and lease losses --- --- --- ---
N
et loans and leases --- --- --- ---
Accrued income and other assets --- --- 243 243
Total assets $ --- $ --- $ 243 $ 243
Liabilities:
Other long-term debt $ --- $ --- $ --- $ ---
Accrued interest and other liabilities --- --- 243 243
Total liabilities $ --- $ --- $ 243 $ 243
2009 2006 Other
Automobile Automobile Consolidated
Trust Trust Trusts Total
(dollar amounts in thousands) December 31, 2013
Assets:
Cash $ 8,580 $ 79,153 $ --- $ 87,733
Loans and leases 52,286 151,171 --- 203,457
Allowance for loan and lease losses --- (711) --- (711)
N
et loans and leases 52,286 150,460 --- 202,746
Accrued income and other assets 235 485 262 982
Total assets $ 61,101 $ 230,098 $ 262 $ 291,461
Liabilities:
Other long-term debt $ --- $ --- $ --- $ ---
Accrued interest and other liabilities --- --- 262 262
Total liabilities $ --- $ --- $ 262 $ 262
The automobile loans and leases were designated to repay the securitized notes. Huntington services the loans and leases and
uses the proceeds from principal and interest payments to pay the securitized notes during the amortization period. All securitized
notes were repaid prior to December 21, 2013. Huntington has not provided financial or other support that was not previously
contractually required.