Huntington Bancshares Incorporated Delivers Impressive Results as Profit Climbs 12%

Today, Huntington Bancshares (HBAN 0.23%) 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.