Huntington Bancshares Incorporated Delivers Impressive Results as Profit Climbs 12%

Today, Huntington Bancshares (NASDAQ: HBAN  ) reported strong second quarter results as its earnings per share rose to $0.19, a gain of 12% over the second quarter of 2013.

In total, the bank saw its net income rise 9% to $165 million. This was due in large part to its net interest income -- what it generates from the loans it issues minus what it pays out on its borrowings -- rising from $425 million last year to $460 million this year, a gain of 8%.

This increase at Huntington Bancshares came from the interest payments it received from the automobile loans it issued rising from $52.2 million to $63.3 million. In total the automobile loans it holds have risen a remarkable 39% over the last year to stand at $7.3 billion.

Huntington also saw a sizable increase in the securities it holds, as those rose from $9.2 billion to $11.4 billion, a gain of 24%. As a result the interest earned on these rose by more than $20 million, or 38%, as the net interest margin also expanded, and brought the bank $74.8 million in interest income.

Over the last year, the earning assets at Huntington have risen by 12% to stand at $57 billion. Its deposits have risen to $48.2 billion, representing 4% growth.

The bank has also seen sizable growth in other means of borrowing, including Federal Home Loan bank advances as well as subordinated notes and other means of long-term debt. Combined these have grown to $5.4 billion, an increase of more than 50% over the $2.1 billion seen in the second quarter of last year.

"We are very pleased with our second quarter performance, which reflects our steadfast focus on executing our strategies," noted the chairman, president and CEO of Huntington Bancshares, Steve Steinour, in the announcement. "We have been able to grow both total revenue and net interest income year over year. Net interest income was particularly noteworthy, as average loan growth of 9 percent allowed us to overcome continued pressure on the net interest margin from the low, flat yield curve."

In addition to its 5% revenue growth as well as increased earnings, the bank also highlighted it repurchased $111 million worth of its common stock in the second quarter. In total, over the last year its average diluted common shares have fallen by 1%.

Overall, the results for Huntington in the most recent quarter were quite strong and represented another quarter of solid growth.

Huntington + Apple? This device makes it possible.
Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are claiming its destined to change everything from banking to health care. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here


Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 3034284, ~/Articles/ArticleHandler.aspx, 10/23/2014 11:54:22 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement