Huntington Reports Q1 Net Income of $326M

COLUMBUS, Ohio — Huntington Bancshares Inc., holding company of Huntington Bank, Tuesday reported first-quarter net income of $326 million, or 28 cents a common share.

That compares to fourth-quarter 2017 net income of $432 million, or 37 cents a common share and the year-ago quarter of $208 million, or 17 cents a common share.

Huntington’s board of directors declared a quarterly cash dividend of 11 cents per common share. The dividend is payable July 2 to shareholders of record June 18.

In a prepared statement, the president, chairman and CEO of Huntington, Steve Steinour, said, “We entered 2018 with momentum, and delivered solid financial performance and balance sheet growth during the first quarter. We converted $363 million of high cost Series A preferred equity into common shares, and subsequently issued $500 million of attractively priced Series E preferred equity. These transactions, coupled with our strong underlying earnings power and disciplined risk management, position us well.”

Key performance ratios for the quarters ended March 31, Dec. 31 and March 31, 2017:

• Return on average assets, 1.27%, 1.67%, 0.84%.
• Return on average common equity, 13.0%, 17.0%, 8.2%.
• Net interest margin, 3.30%, 3.30%, 3.30%.
• Efficiency ratio, 56.8%, 54.9%, 65.7%.

Fourth-quarter highlights Huntington cited compared to the year-ago quarter:

• $36 million, or 3%, year-over-year increase in fully-taxable equivalent revenue, comprised of a $34 million, or 5%, increase in fully-taxable equivalent net interest in
  come and a $2 million, or 1%, increase in noninterest income.
• Net interest margin of 3.30%, unchanged from the year-ago quarter.
• $74 million, or 10%, year-over-year decrease in noninterest expense, as
  the year-ago quarter included $73 million of acquisition-related expense.
• Effective tax rate of 15.3%, down from 22.2% in the year-ago quarter, reflecting the impact of federal tax reform.
• $3.5 billion, or 5%, year-over-year increase in average loans and leases, including a $3.2 billion, or 10%, increase in consumer loans.
• $1.9 billion, or 3%, year-over-year increase in average core deposits, driven
  by a $2 billion, or 11%, increase in money market deposits.
• Nonperforming asset ratio of 0.59%, down from 0.68% a year ago.

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