Huntington Reports Net Income of $152.59 Million

COLUMBUS, Ohio – Huntington Bancshares Inc., holding company of Huntington National Bank, Thursday reported third-quarter net income of $152.59 million, of which $144.62 million was applicable to common shares, or 18 cents per diluted common share.

This compares to total net income of $196.21 million in the second quarter, of which $188.24 million was applicable to common shares, or 23 cents per common share, and third-quarter 2014 total net income of $155.02 million, of which $147.05 million was applicable to common shares, or 18 cents per common share.

The board of directors declared a quarterly cash dividend on the common stock of seven cents a share, same as the second quarter, but up a penny from the third quarter a year ago.

In a statement, the president, chairman and CEO, Steve Steinour, said, “The quarter was in line with our expectations. We remained disciplined in lending … Our focus on growing noninterest-bearing checking accounts from both consumers and businesses and cross-selling other products is working. … We have also carefully managed expenses … while materially investing in the business.”

Key financial ratios for the quarters ended Sept. 30, June 30 and Sept. 30, 2014:

  • Return on average assets, 0.87%, 1.16%, 0.97%.
  • Return on average common shareholder’s equity, 9.3%, 12.3%, 9.9%.
  • Net interest margin, 3.16%, 3.20%, 3.20%.
  • Efficiency ratio, 69.1%, 61.7%, 65.3%.

Net interest income rose to $495.46 million from $490.69 million the second quarter and $466.34 million the quarter ended Sept. 30, 2014.

Noninterest income (fees, trust administration, commissions) added $253.12 million in revenues, down from $281.77 million the preceding quarter, but higher than the $247.35 million recorded the third quarter of 2014.

Noninterest expense (salaries and employee benefits, rents, data processing, marketing, Federal Deposit Insurance premiums) rose to $526.51 million from $491.78 million the second quarter and was $480.32 million the same quarter a year ago.

The loan and lease portfolios increased to $49.046 billion during the quarter, up from $47.899 billion the second quarter and $46.133 billion the third quarter of 2014.

Total assets surpassed $70 billion, reaching $70.210 billion at the end of the quarter. Average total assets were $69.304 billion.

Total deposits at Sept.30 were $54.245 billion, an increase from the $53.473 billion at the end of the second quarter and $50.129 billion at Sept. 30, 2014. Average total deposits for the third quarter were $54.379 billion.

Credit quality remained healthy. Nonperforming assets stood at $172 million at Sept. 30, up from $165 million at June 30 but below the $188 million at Sept. 30, 2014.

Total allowance for credit losses at the end of the quarter was $656.16 million, up slightly from $654.91 million at June 30 but less than $686.49 million for the period ended Sept. 30, 2014.

Nonperforming assets (includes nonperforming loans and administration repossessed real estate) at Sept. 30 were $381.39 million, lower than the $396.01 million at June 30 but higher than the $364.48 million at Sept. 30, 2014. Nonperforming commercial real estate dropped to $27.52 million during the quarter from $43.89 million the second quarter, which in turn was less than the $59.81 million a year ago.

On the other hand, nonaccrual loans in the commercial and industrial portfolio rose to $157.90 million during the quarter from $149.71 million at June 30 and from $90.27 million the quarter ended Sept. 30, 2014.

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