Huntington Reports Q2 Loss of $15M with TCF Acquisition

COLUMBUS, Ohio – Huntington Bancshares Inc. reports a net loss of $15 million in the second quarter, following expenses related to the company’s acquisition of TCF Financial Corp.

“We delivered solid fundamental performance for the quarter,” said Huntington President and CEO Steve Steinour in a statement. “We are seeing encouraging signs of the economic recovery, and customer activity is starting to normalize. Lending pipelines have continued to grow across the board, reflecting our view of increased loan demand later this year. We are excited about the acquisition of TCF, which has strengthened the run-rate return profile of the company. Integration execution is proceeding on schedule.”

The acquisition of TCF was completed June 9 and added $50 billion in assets, $34 billion in loans and leases, and $39 billion in deposits to Huntington’s portfolio. The majority of branch and system conversion of TCF branches is expected to take place in October.

“We are executing strategies to drive sustained revenue growth across the bank, and the TCF acquisition is one component of these efforts. The second quarter introduction of Standby Cash, our most successful product launch ever, is an example of how we are innovating to further differentiate our products and services,” Steinour continued. “We also are building out our business banking, middle market, corporate, and wealth management teams, augmented by increased investments in our brand, to accelerate growth across our expanded customer base and geographies.”

Key performance ratios for the quarters ended June 30, March 31 and June 30, 2020, include:

  • Return on average assets: 0.05%, 1.76%, 0.51%.
  • Return on average common equity: 1.9%, 18.7%, 5%.
  • Net interest margin: 2.66%, 3.48%, 2.94%.
  • Efficiency ratio: 83.1%, 57%, 55.9%.

Net interest income was $838 million in the second quarter, down from $972 million in the previous quarter and up from the $792 million reported in the second quarter of 2020.

Noninterest income was $444 billion, up from $395 billion in the first quarter and $391 billion in the second quarter of 2020.

Total earning assets were $127.4 billion last quarter, up from $114.1 in the first quarter of 2021 and $109 billion in the year-ago quarter. Average earning assets for the second quarter increased $18.4 billion, or 17%, from the year-ago quarter, reflecting a $7.2 billion, or 9%, increase in average total loans and leases, a $6.5 billion, or 27%, increase in average securities, and a $4.2 billion, or 124%, increase in interest-bearing deposits at the Federal Reserve Bank.

Total loans were $111.905 billion, including $41.9 billion in commercial and industrial loans, $14.774 billion in commercial real estate loans and $50.204 billion in consumer loans.

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