Huntington Reports 3Q Net Income of $377M

COLUMBUS, Ohio — Huntington Bancshares Inc. reported a third-quarter net income of $377 million, up $74 million from the same quarter in 2020.

According to its earnings statement released Thursday morning, expenses related to the company’s acquisition of TCF Financial Corp. negatively impacted third-quarter results by $234 million pretax. Still, company President and CEO Steve Steinour said the results demonstrate a “solid start for the combined revenue generation potential” of Huntington following the merger.

“Through the enormous effort of our colleagues, we successfully converted TCF’s core system and completed all branch consolidations in October, concluding the majority of actions leading to announced cost synergies, and we are increasingly turning our focus toward revenue synergies,” Steinour said in the release.

Earnings per common share for the quarter were $0.22, down $0.05 year-over-year. Excluding approximately $0.13 per common share after tax of TCF acquisition-related Notable Items, adjusted earnings per common share were $0.35, according to the release.

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.

“We continued to see increasing momentum in our business strategies during the quarter, delivering loan growth excluding PPP and with strength in areas of strategic focus for fee income, including areas like wealth, capital markets, and cards and payments,” Steinour said. “Additionally, we are continuing to make strategic investments to drive sustained organic growth by dynamically managing expenses.”

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

  • Return on average assets: 0.86%, -0.05%, 1.01%.
  • Return on average common equity: 7.6%, -1.9%, 10.2%.
  • Net interest margin: 2.90%, 2.66%, 2.96%.
  • Efficiency ratio: 74.9%, 83.1%, 57%.

Net interest income was $1.16 billion in the third quarter, up from $838 million in the previous quarter and up from the $817 million reported in the third quarter of 2020.

Noninterest income was $535 million, up from $444 million in the second quarter and $430 million in the second quarter of 2020.

Total earning assets were $159.4 billion in the third quarter, up from $127.4 billion in the second quarter of 2021 and $110.7 billion in the year-ago quarter. Average earning assets for the third quarter increased $48.7 billion, or 44%, from the year-ago quarter, reflecting a $29.4 billion, or 36%, increase in average total loans and leases, a $13.1 billion, or 57%,increase in average securities, and a $5.7 billion, or 97%, increase in interest-bearing deposits at the Federal Reserve Bank.

Total loans and leases were $110.567 billion, including $40.45 billion in commercial and industrial loans, $14.694 billion in commercial real estate loans and $50.430 billion in consumer loans.

Published by The Business Journal, Youngstown, Ohio.