Huntington Reports Net Income of $151.8 Million
COLUMBUS, Ohio -- Huntington Bancshares Inc. Wednesday reported net income of $151.8 million for the quarter ended March 31, or 17 cents per common share.
This compares to fourth-quarter 2012 net income of $167.3 million, or 19 cents per common share, and first-quarter 2012 net income of $153.3 million, or 17 cents per share.
The Midwest provider of financial services (assets $56 billion) also announced it is raising the dividend on its common shares by a penny to five cents a share, a 25% increase. The dividend is payable July 1 to shareholders of record June 17.
The board of directors approved a quarterly cash dividend on Huntington preferred shares, both the 8.5% Series A noncumulative perpetual convertible preferred stock, $21.25 per share, and the floating rate Series B noncumulative perpetual preferred stock, $7.443 per share (equivalent to 18.6 cents per depositary share receipt. They are payable July 15 to shareholders of record July 1.
And the board authorized the repurchase of up to $227 million in common stock. The new repurchase authorization represents a $45 million, or 25%, increase from the recently completed common stock repurchase authorization. Huntington has 842.01 million shares outstanding.
Both actions were proposed last January in Huntington’s capital plan, to which the Federal Reserve did not object.
In a down market Wednesday, shares of Huntington closed at $7.01, 20 cents lower than Tuesday’s close on nearly twice the volume its shares trade, 18.6 million to 9.72 million.
Regardless, as Mark Muth in the investor relations department of Huntington told reporters, Huntington “turned in a solid quarter” as almost all indicators show, such as return on assets of 1.10%, 4% growth in average total loans and 5% growth in average core deposits.
In a prepared statement, the chairman, president and CEO, Stephen D. Steinour, said, “The year is off to a solid start. The quarter’s results continue to demonstrate that our strategies are working. …
“Huntington’s growth has occurred in a challenging economy and regulatory environment. While some companies are hesitant to invest in light of the uncertain economy, we will continue to look for areas where we can improve efficiency, continue to deliver positive operating leverage, and selectively invest in our businesses to drive long-term profitability.”
Key indicators for the quarters ending March 31, Dec. 31 and March 31, 2012:
- Return on assets, 1.10%, 1.19%, 1.13%.
- Return on average common equity, 10.7%, 11.6%, 11.4%.
- Return on average tangible common equity, 12.4%, 13.5%, 13.5%.
- Net interest margin, 3.42%, 3.45%, 3.40%.
- Efficiency ratio, 63.3%, 62.3%, 63.8%.
Net interest income for the same periods was $424.2 million, $434.1 million and $417.2 million while noninterest income was $252.2 million, $297.7 million and $285.3 million respectively.
Noninterest expense (wages and benefits, rents, Federal Deposit Insurance Corp. premiums) dropped $19.9 million, or 4%. For the same periods the figures are $442.8 million, $470.6 million and $462.7 million. The number of employees (full-time equivalent) rose during the first quarter to 12,100 from 11,800 Dec. 31 and 11,200 a year before.
Net charge-offs of loans fell to $51.69 million from $70.13 million the preceding quarter and $84,25 million the first quarter of 2012.
Published by The Business Journal, Youngstown, Ohio.
CLICK HERE to subscribe to our free daily email headlines and to our twice-monthly print edition.