Huntington National Bank 2013 Annual Report Download - page 150

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144
A summary of key assumptions and the sensitivity of the SBA loan servicing rights value to changes in these assumptions at
December 31, 2013 and 2012 follows:
December 31, 2013 December 31, 2012
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) 5.90 % $ (221) $ (438) 6.40 % $ (201) $ (398)
Discount rate 1,500 bps (446) (873) 1,500 bps (374) (731)
Servicing income, net of amortization of capitalized servicing assets, amounted to $6.3 million, $5.7 million, and $4.9 million in
2013, 2012, and 2011, respectively. The unpaid principal balance of SBA loans serviced for third parties was $885.4 million, $758.3
million and $555.5 million at December 31, 2013, 2012 and 2011, respectively.
7. GOODWILL AND OTHER INTANGIBLE ASSETS
Business segments are based on segment leadership structure, which reflects how segment performance is monitored and
assessed. No segments were significantly changed and no reallocation of goodwill occurred in either 2013 or 2012.
A rollforward of goodwill by business segment for the years ended December 31, 2013 and 2012, is presented in the table below:
Retail & Regional &
Business Commercial Treasury/ Huntington
(dollar amounts in thousands) Banking Banking AFCRE WGH Other Consolidated
Balance, January 1, 2012 $ 286,824 $ 16,169 $ --- $ 98,951 $ 42,324 $ 444,268
Adjustments / Reallocation of goodwill --- --- --- --- --- ---
Balance, December 31, 2012 286,824 16,169 --- 98,951 42,324 444,268
Adjustments / Reallocation of goodwill --- --- --- --- --- ---
Balance, December 31, 2013 $ 286,824 $ 16,169 $ --- $ 98,951 $ 42,324 $ 444,268
Goodwill is not amortized but is evaluated for impairment on an annual basis as of October 1st each year or whenever events or
changes in circumstances indicate that the carrying value may not be recoverable. No impairment was recorded in 2013, 2012 or
2011.
At December 31, 2013 and 2012, Huntington’s other intangible assets consisted of the following:
Gross Net
Carrying Accumulated Carrying
(dollar amounts in thousands) Amount Amortization Value
December 31, 2013
Core deposit intangible $ 380,249 $ (335,552) $ 44,697
Customer relationship 106,974 (58,675) 48,299
Other 25,164 (24,967) 197
Total other intangible assets $ 512,387 $ (419,194) $ 93,193
December 31, 2012
Core deposit intangible $ 380,249 $ (302,003) $ 78,246
Customer relationship 104,574 (50,925) 53,649
Other 25,164 (24,902) 262
Total other intangible assets $ 509,987 $ (377,830) $ 132,157