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Huntington Nets $158M in 4Q, $639M in 2013
COLUMBUS, Ohio -- Huntington Bancshares Inc., holding company of Huntington National Bank, Thursday reported net income of $157.8 million for the quarter ended Dec. 31, or 18 cents per diluted common share, and full-year net come of $638.7 million, or 72 cents per diluted share.
This compares to third-quarter 2013 net income of $178.5 million, or 20 cents per diluted share, and fourth-quarter 2012 net income $167.3 million, or 18 cents per share. Full year net income compares to $641.0 million in 2012 or 71 cents per share.
The Huntington Board of Directors yesterday declared a cash dividend of five cents per common share payable April 1 to shareholders of record March 18.
The president of the Mahoning Valley region, Frank Hierro, called the quarterly and annual earnings “solid.” The “good news,” he said, is the “continued growth in the business and consumer loan portfolios” as evidenced by total commercial lending rising to $22.2 billion at Dec. 31 from $21.7 billion a year earlier. Total consumer loans on Huntington’s books at Dec. 31 were $19.6 billion compared to $18.5 billion Dec. 31, 2012.
Auto lending grew to $5.7 billion from $4.5 billion a year earlier – “We set a record for auto loan originations,” Hierro said -- while home equity lending was flat at $8.3 billion, likewise residential mortgages at $5.2 billion.
The growth in consumer lending overall is reflected in the increased number and percentage of families who six or more products (savings and checking accounts, safe deposit box rental, for example), the bank offers, “nearly 50% today,” Hierro noted. “Compare that to the mid 20s five years ago.”
Key ratios for the quarters ended Dec. 31 and Sept. 30, 2013, Dec. 31, 2012, and full years 2013 and 2012:
- Return on average assets, 1.13%, 1.27%, 1.19%, 1.13%, 1.15%.
- Return on average common equity, 10.5%, 12.3%, 11.8%, 11.0%, 11.5%.
- Net interest margin, 3.28%, 3.34%, 3.45%, 3.36%, 3.41%.
- Efficiency ratio, 63.7%, 60.6%, 62.3%, 62.9%, 63.4%.
Net interest income for the year was $1,704.6 million compared to $1.710.5 million in 2012 and fourth-quarter net income was $430.8 million compared to $424.9 million the preceding quarter and $439.5million the last quarter of 2012.
Total noninterest income (includes service charges, mortgage banking, trust services, electronic banking, brokerage) was $998 million for the year, just short of $100 million below 2012’s $1,097.9 million.
Noninterest expense – wages, benefits, rents, data processing, advertising, Federal Deposit Insurance Corp. premiums, for example -- was $78 million, or 4%, less in 2013 than 2012, $1.758 billion and $1.835 billion respectively. Fourth-quarter noninterest expense was $446 million compared to $423.3 million the third quarter and $470.6 million the last quarter if 2012.
The lower expense reflects a 38% decrease in the use of outside consultants and legal expense, primarily collections, a 27% decrease in insurance premiums and a 20% decrease in advertising and promotional offers. These were offset a 13% increase in net occupancy and branch consolidation, a 1% increase in personnel costs and a 5% increase in outside data processing costs.
Credit quality remains strong and improved during the year as reflected by the metrics Huntington reported. Nonperforming assets fell $94 million or 21% over the year to $352 million, or 0.82% of total loans and leases. The provision for credit losses was $57 million less, or 39% less, at Dec. 31 than a year earlier.
Net charge-offs in the fourth quarter were $46.45 million in the fourth quarter (or 0.43% of total loans), $55.74 million in the third (or 0.53% of total loans) and $70.13 million the last quarter of 2012 (or 0.69% of total loans).
Published by The Business Journal, Youngstown, Ohio.
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