Huntington Reports Record 2018 Net Income of $1.4B

COLUMBUS, Ohio — Huntington Bancshares Inc., holding company of Huntington Bank, Thursday reported fourth-quarter net income of $334 million, or 29 cents a common share, and full-year 2018 net income of $1.4 billion, or $1.20 per common share.

This compares to third-quarter net income of $378 million, or 33 cents a share, and a 23% decrease from the year-ago fourth-quarter income of $432 million, or 37 cents a share.

Full-year 2017 income was $1.2 billion, or $1 per share.

In a prepared statement, the president, chairman and CEO of Huntington, Steve Steinour, said, “2018 marks another year of strong performance for Huntington, with record net income for the fourth consecutive year and annual positive operating leverage for the sixth consecutive year. Our view of 2019 from a balance sheet growth perspective remains unchanged, generally consistent with our view of overall economic activity. The underlying fundamentals of our local economies are positive, and businesses are generally performing well and are optimistic about 2019. Our loan pipelines remain steady, and credit metrics remain strong. We are executing on our new strategic plan and continue to invest to drive organic growth.”

Key performance ratios for the quarters ended Dec. 31, Sept. 30 and Dec. 31, 2017:

  • Return on average assets, 1.25%, 1.42%, 1.67%.
  • Return on average common equity, 12.9%, 14.3%, 17.0%.
  • Net interest margin, 3.41%, 3.32%, 3.30%.
  • Efficiency ratio, 58.7%, 55.3%, 54.9%.

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

  • Average loans and leases increased $4.9 billion, or 7%, including a $3 billion, or 9% increase in consumer loans and a $1.9 billion, or 5% increase in commercial loans.
  • Average core deposits increased $5.1 billion, or 7%, driven by a $3.8 billion, or 193%, increase in average core CDs and a $1.9 billion, or 9%, increase in money market deposits.
  • Repurchased $200 million in common stock (15 million shares at an average price of $13.36 per share).
  • In October, Huntington announced the consolidation of 70 branches and additional corporate facilities. While the expense of these actions was included in the 2018 fourth quarter, certain consolidations were completed early in the 2019 first quarter.
  • In December, Huntington announced the sale of 32 Wisconsin branches, which are expected to close in the 2019 second quarter.

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