Huntington Reports 2Q Net Income of $164.6 Million

COLUMBUS, Ohio -- Huntington Bancshares Inc., parent of Huntington National Bank, Friday reported net income of $164.6 million for the quarter ended June 30, or 19 cents per diluted share.

This is $13.6 million more than second-quarter 2013 net income of $151.0 million, or 17 cents per diluted share. Huntington reported net income of $149.1 million the quarter ended March 31, or 17 cents a share.

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

Other highlights Huntington cited:

  • Its efficiency ratio improved to 62.7% compared to 63.7% for the second quarter of 2013.
  • Net interest margin was 3.28% compared to 3.27% the previous quarter and 3.38% the quarter ended June 30, 2013.
  • Net charge-offs fell to 0.25% of average loans and leases, down from 0.34% in the year-ago quarter.

It repurchased 12.1 million common shares at an average price of $9.17 per share, or $111 million. Huntington opened trading at $9.70 Friday morning.

Average loans rose $3.74 billion to $45.024 billion from $41.28 billion at June 30, 2013, an increase attributed to “growth in commercial and auto lending,” a reflection of increasing confidence in the economy by both businesses and consumers, the bank said.

The number of consumer households the bank serves in its Midwest footprint increased at an annualized rate of 10% since March 31, 8.9% since June 30, 2013.

In a prepared statement, the chairman, president and CEO of Huntington, Steve Steinour, said, “”We are very pleased with our second-quarter performance, which reflects our steadfast focus on executing our strategies. We have been able to [increase] both total revenue and net interest income over the year. Net interest income [$460 million compared to year-ago second quarter of $424.9 million] was particularly noteworthy as average loan growth of 9% allowed us to overcome continued pressure on the net interest margin [3.28%] from the low, flat yield curve.”

The average auto loan portfolio rose $2.1 billion, or a 39% increase to $7.3 billion from a year ago.

The total consumer portfolio rose $2.5 billion from June 30, 2013, when it was $19.2 billion, to $21.7 billion.  The residential mortgage portfolio rose $400 million, or 7%, to $5.6 billion from the first quarter, because an increase in demand for adjustable-rate mortgages.   

The commercial and industrial portfolio stood at $18.3 billion at June 30, up from $17 billion a year earlier. Commercial real estate remained unchanged at $5.0 billion.

Key ratios for the quarters ended June 30, March 31, and June 30, 2013:

  • Return on average assets, 1.07%, 1.01%, 1.08%.
  • Return on average common equity, 10.8%, 9.9%, 10.4%.
  • Efficiency ratio, 62.7%, 66.4%, 63.7%.

SOURCE: Huntington Bank

Published by The Business Journal, Youngstown, Ohio.
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