Huntington National Bank 2014 Annual Report Download - page 122

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ASU 2014-09—Revenue from Contracts with Customers (Topic 606): The amendments in ASU 2014-09 supersede the revenue
recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance. The general principle of the
amendments require an entity to recognize revenue upon the transfer of promised goods or services to customers in an amount that
reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance sets forth a
five step approach to be utilized for revenue recognition. The amendments are effective for annual reporting periods beginning after
December 15, 2016, including interim periods within that reporting period. Management is currently assessing the impact to
Huntington’s Consolidated Financial Statements.
ASU 2014-11— Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and
Disclosures. The amendments in the ASU require repurchase-to-maturity transactions to be recorded and accounted for as secured
borrowings. Amendments to Topic 860 also require separate accounting for a transfer of a financial asset executed
contemporaneously with a repurchase agreement with the same counterparty (i.e., a repurchase financing), which will result in secured
borrowing accounting for the repurchase agreement, as well as additional required disclosures. The accounting amendments and
disclosures are effective for interim and annual periods beginning after December 15, 2014. The disclosures for repurchase
agreements, securities lending transactions, and repurchase-to-maturity transactions accounted for as secured borrowings are required
to be presented for annual periods beginning after December 15, 2014, and for interim periods beginning after March 15, 2015.
Management is currently assessing the impact to Huntington’s Consolidated Financial Statements.
ASU 2014-12— Compensation—Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of
an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. The amendments require
that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance
condition. Specifically, if the performance target becomes probable of being achieved before the end of the requisite service period,
the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The
amendments are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015.
Management is currently assessing the impact to Huntington’s Consolidated Financial Statements.
ASU 2014-13—Consolidation (Topic 810): Measuring the Financial Assets and the Financial Liabilities of a Consolidated
Collateralized Financing Entity The amendments allow a reporting entity that consolidates a collateralized financing entity within
the scope of the guidance to elect to measure the financial assets and the financial liabilities of that collateralized financing entity
using the measurement alternative. Under the measurement alternative, the reporting entity should measure both the financial assets
and the financial liabilities of that collateralized financing entity in its consolidated financial statements using the more observable of
the fair value of the financial assets and the fair value of the financial liabilities. The amendments are effective for annual periods, and
interim periods within those annual periods, beginning after December 15, 2015. Management does not believe the amendments will
have a material impact to Huntington’s Consolidated Financial Statements.
ASU 2014-14— Receivables—Troubled Debt Restructurings by Creditors (Subtopic 310-40): Classification of Certain
Government-Guaranteed Mortgage Loans upon Foreclosure. The amendments require a mortgage loan to be derecognized and a
separate receivable to be recognized upon foreclosure if the loan has a government guarantee that is non-separable from the loan
before foreclosure, the creditor has the ability and intent to convey the real estate property to the guarantor, and any amount of the
claim that is determined on the basis of the fair value of the real estate is fixed. Additionally, the separate other receivable should be
measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor upon
foreclosure. The amendments are effective for annual periods and interim periods within those annual periods beginning after
December 15, 2014. Management does not believe the amendments will have a material impact to Huntington’s Consolidated
Financial Statements.
3. LOANS AND LEASES AND ALLOWANCE FOR CREDIT LOSSES
Loans and leases for which Huntington has the intent and ability to hold for the foreseeable future, or until maturity or payoff, are
classified in the Consolidated Balance Sheets as loans and leases. Except for loans which are accounted for at fair value, loans and
leases are carried at the principal amount outstanding, net of unamortized deferred loan origination fees and costs and net of unearned
income. At December 31, 2014 and 2013, the aggregate amount of these net unamortized deferred loan origination fees and net
unearned income was $178.7 million and $192.9 million, respectively.