Huntington National Bank 2013 Annual Report Download - page 175

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169
Assets and liabilities under the fair value option
The following table presents the fair value and aggregate principal balance of certain assets and liabilities under the fair value
option:
December 31, 2013 December 31, 2012
Fair value Aggregate Fair value Aggregate
carrying unpaid carrying unpaid
(dollar amounts in thousands) amoun
t
principal Difference amoun
t
principal Difference
Assets
Mortgage loans held for sale $ 278,928 $ 276,945 $ 1,983 $ 452,949 $ 438,254 $ 14,695
Automobile loans 52,286 50,800 1,486 142,762 140,916 1,846
The following tables present the net gains (losses) from fair value changes, including net gains (losses) associated with instrument
specific credit risk for the years ended December 31, 2013, 2012 and 2011:
Net gains (losses) from fair value changes
Year ended December 31,
(dollar amounts in thousands) 2013 2012 2011
Assets
Mortgage loans held for sale $ (12,711) $ 4,284 $ 13,842
Automobile loans (360) (1,231) (6,577)
Liabilities
Securitization trust notes payable --- (2,023) (7,731)
Gains (losses) included in fair value changes
associated with instrument specific credit risk
Year ended December 31,
(dollar amounts in thousands) 2013 2012 2011
Assets
Automobile loans $ 2,207 $ 2,749 $ 6,610
Assets and Liabilities measured at fair value on a nonrecurring basis
Certain assets and liabilities may be required to be measured at fair value on a nonrecurring basis in periods subsequent to their
initial recognition. These assets and liabilities are not measured at fair value on an ongoing basis; however, they are subject to fair
value adjustments in certain circumstances, such as when there is evidence of impairment. For the year ended December 31, 2013,
assets measured at fair value on a nonrecurring basis were as follows:
Fair Value Measurements Using
Quoted Prices Significant Significant Total
In Active Other Other Gains/(Losses)
Markets for Observable Unobservable For the
Fair Value at Identical Assets Inputs Inputs Year Ended
(dollar amounts in thousands) December 31, (Level 1) (Level 2) (Level 3) December 31,
2013
Impaired loans $ 114,256 $ --- $ --- $ 114,256 $ (39,228)
Other real estate owned 27,664 --- --- 27,664 $ 4,302
Periodically, Huntington records nonrecurring adjustments of collateral-dependent loans measured for impairment when
establishing the ACL. Such amounts are generally based on the fair value of the underlying collateral supporting the loan. Appraisals
are generally obtained to support the fair value of the collateral and incorporate measures such as recent sales prices for comparable
properties and cost of construction. In cases where the carrying value exceeds the fair value of the collateral less cost to sell, an
impairment charge is recognized. During the year ended December 31, 2013, Huntington identified $114.3 million of impaired loans
for which the fair value is recorded based upon collateral value. For the year ended December 31, 2013, nonrecurring fair value losses
of $39.2 million were recorded within the provision for credit losses.