Huntington Reports Record Second-Quarter Net Income

COLUMBUS, Ohio – Huntington Bancshares Inc., parent of Huntington Bank, Thursday reported second-quarter net income of $196.2 million, a record for any second quarter, or 23 cents per common share.

The $196.2 million is $31.6 million higher than the net income reported a year ago and $300,000 above that reported for the first quarter. Earnings per common share were 19 cents both quarters.

The board of directors declared a quarterly cash dividend of six cents per common share payable Oct. 1 to shareholders of record Sept. 17.

During the second quarter, the company repurchased 8.8 million common shares at an average price of $11.20 per share, it reported.

Said Steve Steinour, chairman, president and CEO in a prepared statement, “We reported good quarterly earnings that are increasingly driven by our differentiated strategy and disciplined execution. I am pleased with the momentum we displayed this quarter in total revenue, posting growth of 9% year-over-year, Both net interest income [$498.6 million] and fee income [noninterest income was $281.8 million] contributed meaningfully to revenue performance. We received an immediate benefit to our earnings from Huntington Technology Finance [formerly Macquarie Equipment Finance] while robust mortgage lending volume drove growth in mortgage banking income [residential mortgage, $5.9 million]. Our capital markets and treasury management business also provided strong results.

Key performance ratios for the quarters ended June 30, March 31 and June 30, 2014:

• Return on average assets, 1.16%, 1.02%, 1.07%.
• Return on average common equity, 12.3%, 10.6%, 10.8%.
• Net interest margin, 3.20%, 3.15%, 3.28%.
• Efficiency ratio, 61.7%, 63.5%, 62.7%.

Average earning assets rose $5.5 billion, or 10%, from the year-ago quarter driven by

• $1.6 billion, or 9%, increase in average commercial and industrial loans and leases.
• $1.6 billion, or 14%, increase on average securities.
• $1.0 billion increase in average loans held for sale.
• $700 million, or 10%, increase in average automobile loans. It was the sixth consecutive quarter of originating auto loans of more than $1 billion.

Noninterest expense (includes wages and benefits, data processing, rents, marketing, Federal Deposit Insurance Corp. premiums) was $491.8 million, up $33 million, or 7%, from $458.9 million the first quarter and from $458.6 million the year-ago quarter. The number of full-time-equivalent employees rose to 12,300 from 11,900 the first quarter and was 100 more than the second quarter a year ago.

Personnel expense was $281.8 million compared to $264.9 million the first quarter and $260.6 million the quarter ended June 30, 2014. Salaries rose $18 million to reflect the May implementation of merit raises and the 2% increase in the number of full-time employees.

Total nonperforming assets dropped slightly from the first quarter, $364.34 million from $364.41 million, but were $324.96 million for the quarter ended June 30, 2014.

Total earning assets grew to $62.6 billion from $61.2 billion at March 31 and $60.0 billion at Dec. 31.

Total deposits grew a half billion dollars to $52.6 billion during the quarter and from $50.8 billion at yea-rend.

SOURCE: Huntington Bancshares Inc.

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