Huntington National Bank 2009 Annual Report Download - page 165

Total servicin
g
fees included in mort
g
a
g
e bankin
g
income amounted to $48.5 million, $45.6 million, an
d
$
36.0 million in 2009, 2008, and 2007, respectivel
y
. The unpaid principal balance of residential mort
g
a
ge
l
oans serviced for third
p
arties was $16.0 billion, $15.8 billion, and $15.1 billion at December 31, 2009, 2008,
and 2007, respectivel
y.
A
utomo
b
i
l
e Loans an
d
Leases
Durin
g
the first quarter of 2009, Huntin
g
ton transferred
$
1.0 billion automobile loans and leases to a trus
t
in a securitization transaction. The securitization qualified for sale accountin
g
under ASC 860. Huntin
g
ton
retained a portion of the related securities, with par values totalin
g$
210.9 million and recorded a
$
47.1 millio
n
reta
i
ne
d
res
id
ua
li
nterest as a resu
l
to
f
t
h
e transact
i
on. Su
b
se
q
uent to t
h
e transact
i
on,
i
nt
h
e secon
dq
uarter o
f
2
009, Huntin
g
ton sold a portion of these securities with par values totalin
g$
78.4 million. These amounts wer
e
recorded as investment securities on Huntin
g
ton’s consolidated balance sheet. Huntin
g
ton also recorded a
$
5.9 million loss in other noninterest income on the consolidated statement of income and recorded a
$
19.5 million servicin
g
asset in accrued income and other assets associated with this transaction.
Automo
bil
e
l
oan serv
i
c
i
n
g
r
igh
ts are accounte
df
or un
d
er t
h
e amort
i
zat
i
on met
h
o
d
. A serv
i
c
i
n
g
asset
is
esta
bli
s
h
e
d
at
f
a
i
rva
l
ue at t
h
et
i
me o
f
t
h
esa
l
eus
i
n
g
t
h
e
f
o
ll
ow
i
n
g
assumpt
i
ons: actua
l
serv
i
c
i
n
gi
ncome o
f
0.55% — 1.00%, adequate compensation for servicin
g
of 0.50% — 0.65%, other ancillar
y
fees of approxi
-
matel
y
0.37% — 0.
5
0%, a discount rate of 2% — 10% and an estimated return on pa
y
ments prior to
rem
i
ttance to
i
nvestors. T
h
e serv
i
c
i
n
g
asset
i
st
h
en amort
i
ze
d
a
g
a
i
nst serv
i
c
i
n
gi
ncome. Impa
i
rment,
if
an
y
,
is
reco
g
nized when carr
y
in
g
value exceeds the fair value as determined b
y
calculatin
g
the present value o
f
expecte
d
net
f
uture cas
hfl
ows. T
h
epr
i
mar
y
r
i
s
k
c
h
aracter
i
st
i
c
f
or measur
i
n
g
serv
i
c
i
n
g
assets
i
spa
y
o
ff
rates o
f
t
h
eun
d
er
lyi
n
gl
oan poo
l
s. Va
l
uat
i
on ca
l
cu
l
at
i
ons re
ly
on t
h
e pre
di
cte
d
pa
y
o
ff
assumpt
i
on an
d
,
if
actua
l
pa
y
o
ff
i
s
q
u
i
c
k
er t
h
an ex
p
ecte
d
,t
h
en
f
uture va
l
ue wou
ld b
e
i
m
p
a
i
re
d
.
Ch
an
g
es
i
nt
h
e carr
yi
n
g
va
l
ue o
f
automo
bil
e
l
oan serv
i
c
i
n
g
r
igh
ts
f
or t
h
e
y
ears en
d
e
d
Decem
b
er 31, 200
9
and 2008, and the fair value at the end of each
p
eriod were as follows:
2009
2
008
(
In thousands
)
C
arr
yi
n
g
va
l
ue,
b
e
gi
nn
i
n
g
o
fy
ear
..................................
$
1
,
656
$
4
,
099
New serv
i
c
i
n
g
assets create
d
......................................
19,
5
38
—
Amort
i
zat
i
on an
d
ot
h
e
r
..........................................
(
8
,
282
)
(2
,
443)
C
arry
i
n
g
value, end o
f
yea
r
......................................
$12
,
912
$
1
,
656
Fa
i
r value, end o
fy
ea
r
.........................................
$14
,
985
$
1
,
926
Hunt
i
n
g
ton
h
as reta
i
ne
d
serv
i
c
i
n
g
respons
ibili
t
i
es on so
ld
automo
bil
e
l
oans an
d
rece
i
ves annua
l
serv
i
c
i
n
g
f
ees an
d
ot
h
er anc
ill
ar
yf
ees on t
h
e outstan
di
n
gl
oan
b
a
l
ances. Serv
i
c
i
n
gi
ncome, net o
f
amort
i
zat
i
on o
f
capitalized servicin
g
assets, amounted to $6.4 million, $6.8 million and $11.9 million for the
y
ears ende
d
Decem
b
er 31, 2009, 2008 an
d
2007, respect
i
ve
ly
.T
h
e unpa
id
pr
i
nc
i
pa
lb
a
l
ance o
f
automo
bil
e
l
oans serv
i
ce
d
for third
p
arties was
$
1.1 billion,
$
0.5 billion , and
$
1.0 billion at December 31, 2009, 2008 and 2007,
respectivel
y.
At December 31, 2009, retained interests in automobile securitizations totaled
$
45.9 million.
Q
uoted
market prices are
g
enerall
y
not available for retained interests in automobile securitizations. At December 31
,
1
5
7