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Huntington Bancshares issues first-quarter earnings

COLUMBUS — Huntington Bancshares reported net income for the 2019 first quarter of $358 million, an increase of 10 percent from the year-ago quarter.

Earnings per common share for the 2019 first quarter were 32 cents, up 14 percent from the year-ago quarter. Tangible book value per common share as of 2019 first quarter-end was $7.67, an 8 percent year-over-year increase. Return on average assets was 1.35 percent, return on average common equity was 13.8 percent, and return on average tangible common equity was 18.3 percent.

“We had a solid start to the year and are encouraged by the strong balance sheet growth in the first quarter, reflecting the underlying growth of the economies in our footprint,” said Steve Steinour, chairman, president, and CEO. “Huntington is performing well as EPS increased 14 percent and total revenue increased 5 percent from the year-ago quarter. We are executing on our strategies and continue to make meaningful investments to drive organic revenue growth and to better serve our customers with enhanced digital technology.”

Average loan growth of 6 percent year-over-year was driven by both consumer and commercial lending, he said. Commercial and industrial lending remained strong in the first quarter, building on momentum from year-end, and average deposits increased 8 percent year-over-year, Steinour said.

“Overall economic activity in our footprint continues to reflect a favorable outlook for both consumers and businesses. Our balance sheet growth expectations for 2019 remain unchanged. Our commercial loan pipelines are steady, and we are seeing the normal seasonal build in our consumer pipelines,” Steinour said. “Competition for loans and deposits is rational. We do not foresee a recession in the near term; however, our core earnings power, strong capital, aggregate moderate-to-low risk appetite, and long-term strategic alignment position us to withstand economic headwinds,” Steinour said.

2019 first quarter highlights compared with 2018 first quarter:

* Fully-taxable equivalent total revenue increased $57 million, or 5 percent.

* Fully-taxable equivalent net interest income increased $52 million, or 7 percent.

* Net interest margin increased 9 basis points to 3.39 percent.

* Noninterest income increased $5 million, or 2 percent.

* Noninterest expense increased $20 million, or 3 percent.

* Efficiency ratio of 55.8 percent, down from 56.8 percent

* Average loans and leases increased $4.3 billion, or 6 percent, year-over-year, including a $2.5 billion, or 7 percent, increase in consumer loans and a $1.8 billion, or 5 percent, increase in commercial loans.

* Average core deposits increased $5.6 billion, or 8 percent, year-over-year, driven by a $3.8 billion, or 164 percent, increase in core certificates of deposit and a $2.3 billion, or 11 percent, increase in money market deposits.

* Net charge-offs equated to 0.38 percent of average loans and leases, up from 0.21 percent.

* Nonperforming asset ratio of 0.61 percent, up from 0.59 percent.

* Common Equity Tier 1 risk-based capital ratio of 9.84 percent, down from 10.45 percent and within our 9 percent to 10 percent operating guideline.

* Tangible common equity ratio of 7.57 percent, down from 7.70 percent.

* Tangible book value per common share increased $0.55, or 8 percent, to $7.67.

* Repurchased $25 million of common stock (1.8 million shares at an average price of $13.64 per share)

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