Please ensure Javascript is enabled for purposes of website accessibility

Huntington Bancshares Stock: 9 Critical Numbers

By John Maxfield - Apr 8, 2013 at 12:07PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

If you own Huntington Bancshares stock or are thinking about buying it, then at the very least, you should know these nine critical numbers.

Given that you clicked on this article, it seems safe to assume you either own stock in Huntington Bancshares (HBAN 0.87%) or are considering buying shares in the near future. If so, then you've come to the right place. The table below reveals the nine most critical numbers that investors need to know about Huntington stock before deciding whether to buy, sell, or hold it.

But before getting to that, a brief introduction is in order. Huntington traces its roots back to 1866. Headquartered in Columbus, Ohio, it has a network of more than 690 traditional bank branches and "convenience branches" located in grocery stores throughout six Midwestern states: Ohio, Michigan, Pennsylvania, Indiana, West Virginia, and Kentucky. And while it offers an array of services, from commercial to mortgage lending, a particular specialty of Huntington's is automobile financing. As its website boasts, "Through automotive dealership relationships within its six-state banking franchise area and selected other Midwest and New England states, Huntington also provides commercial banking services to the automotive dealers and retail automobile financing for dealer customers."

As you can see in the table above, Huntington's biggest strength is its management of credit risk. With a non-performing loans ratio of 1%, the bank beat the industry average by an impressive 84 basis points. This wasn't always the case. In 2008 and 2009, for example, its NPL ratio shot up to 3.7% and 5.2%, respectively, thanks to Huntington's ill-timed acquisition of Sky Financial in 2007 -- the latter made loans to, among others, a consumer finance company with a large portfolio of subprime mortgages. Huntington was able to put this decision behind it with a $2.6 billion charge-off in 2009 and the contemporaneous hiring of a new CEO.

On the other hand, Huntington's biggest weakness is its net interest margin, which comes in almost 30 basis points below average thanks to the bank's notoriously low-yielding securities portfolio. There is, however, an upside here. As Huntington's chief financial officer explained on the last conference call, "we try to keep the duration fairly short there. And so we think we will have less falloff from our current yield there than many of our peers as well, which will be a relative benefit for us compared to our peers."

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Huntington Bancshares Incorporated Stock Quote
Huntington Bancshares Incorporated
HBAN
$13.93 (0.87%) $0.12

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
356%
 
S&P 500 Returns
124%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/28/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.