Huntington Reports $150.7 Million in 2Q Net Income
YOUNGSTOWN, Ohio -- Huntington Bancshares Inc., holding company of Huntington National Bank, Columbus, Thursday reported second-quarter net income of $150.7 million, or 17 cents per common share.
This compares to first-quarter net income $151.8 million, or 17 cents per common share, and second-quarter 2012 net income of $152.7 million, again 17 cents per share.
Said Frank Hierro, president of the Mahoning Valley region of the bank, “We’re pleased with a very solid quarter and that our strategies are paying off.”
Noted the president, chairman and CEO of the holding company, Stephen D. Steinour, in a prepared statement, “We have returned to pre-recession, normal credit levels ahead of our expectations.”
In fact, two quarters ahead of schedule, Hierro pointed out.
The president of the Mahoning Valley region credited the bank’s Fair Play Banking campaign for gains in the consumer market here. “Forty-seven percent of our retail customers have six or more products with us,” Hierro reported. In bankspeak, products encompass what laymen call services -- such as checking and savings accounts, certificates of deposit, mortgages, home equity loans, auto loans, and bank credit cards.
In its earnings release, Huntington reported its commercial and industrial portfolio grew by $900 million, or 6% since June 30, 2012, and average auto loans grew by $300 million, or 6%, over the same period. While Hierro declined to break out how much his region contributed to that growth, he did say loans here to households rose 10% and C&I loans rose more than 7% in that period.
“We’re seeing the benefits of auto manufacturing picking up here,” Hierro said. “And hardly a week goes by that income from the [Utica] oil and gas play doesn’t bring someone in [to discuss an expanded relationship with Huntington].”
Second-quarter net interest income at Huntington was $424.9 million, up $700,000 from the previous quarter but $4.1 million less than the same quarter in 2012.
Net interest margin was 3.38% compared to 3.42% in the first quarter and 3.42% at June 30, 2012.
Noninterest income -- fees and service charges -- was $248.7 million compared to $252.2 million the first quarter and $253.8 million the second quarter last year.
Noninterest expense -- salaries and benefits, rent, equipment, marketing, administering repossessed real estate -- rose to $263.9 million from $258.9 million the first quarter and $243.0 million the second quarter a year ago. The increase reflects hiring more employees to serve Huntington customers, Hierro noted, especially the bank’s entry into Giant Eagle supermarkets in Ohio and Meijer stores in Michigan, its increased mortgage lending activity and need for information technology specialists.
The efficiency ratio at Huntington, that is, how much the company spends to earn a dollar of revenue, was 64%, up slightly from 63.3% the first quarter and 62.8% the second quarter of 2012.
Return on average assets was 1.08%, down 0.02% from March 31, and down 0.12% at June 30, 2012.
Return on average common equity was 10.4%, down 0.3% at March 31 and down 0.7% at June 30, 2012.
Markets responded favorably to Huntington’s earnings, released shortly before 9 a.m. By late afternoon its common shares had risen 15 cents to $8.39 and its volume was nearly 50% above its daily average.
Copyright 2013 The Business Journal, Youngstown, Ohio.
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