Huntington Bancshares reports net income

COLUMBUS — Huntington Bancshares reported net income for the 2019 second quarter of $364 million, an increase of 3 percent from the year-ago quarter.

Earnings per common share for the quarter were 33 cents, up 10 percent from the year-ago quarter. Tangible book value per common share as of 2019 second quarter-end was $7.97, a 10 percent year-over-year increase. Return on average assets was 1.36 percent, return on average common equity was 13.5 percent, and return on average tangible common equity was 17.7 percent.

“We are pleased with our solid second quarter performance,” said Steve Steinour, chairman, president and CEO. “We remain disciplined in the execution of our strategies and have taken appropriate measures to drive long-term performance.”

Huntington received the highest score in the J.D. Power 2019 U.S. Online Banking and Banking Mobile App Satisfaction Studies, he said.

“We are pleased with this independent recognition of our mobile and digital technology, which follows the launch of our digital platform The Hub last year,” he said. “Our investments continue to build on our customer experience advantage to grow market share and share of wallet in the markets we serve.”1

The board approved a 7 percent increase to the quarterly cash dividend on the company’s common stock. Following the completion of the 2018 capital plan’s share repurchase in the 2019 second quarter, the board also approved the repurchase of up to $513 million of common shares over the next four quarters.

“The underlying economic fundamentals in our footprint continue to reflect a favorable outlook for both consumers and businesses,” Steinour said.

Second Quarter Highlights compared with 2018 Second Quarter:

* Fully-taxable equivalent total revenue increased $66 million, or 6 percent.

* Fully-taxable equivalent net interest income increased $28 million, or 4 percent.

* Net interest margin increased 2 basis points to 3.31 percent.

* Noninterest income increased $38 million, or 11 percent, including a $15 million gain on the sale of the Wisconsin retail branches.

* Noninterest expense increased $48 million, or 7 percent.

* Efficiency ratio of 57.6 percent, up from 56.6 percent.

* Average loans and leases increased $3.0 billion, or 4 percent, year-over-year, including a $1.7 billion, or 5 percent, increase in consumer loans and a $1.3 billion, or 4 percent, increase in commercial loans.

* Average core deposits increased $3.3 billion, or 4 percent, year-over-year, driven by a $2.4 billion, or 11 percent, increase in money market deposits and a $2.1 billion, or 54 percent, increase in core certificates of deposit.

* Net charge-offs equated to 0.25 percent of average loans and leases, up from 0.16 percent.

* Nonperforming asset ratio of 0.61 percent, up from 0.57 percent.

* Common Equity Tier 1 risk-based capital ratio of 9.88 percent, down from 10.53 percent and within our 9 percent to 10 percent operating guideline.

* Tangible common equity ratio of 7.80 percent, up from 7.78 percent.

* Tangible book value per common share increased $0.70, or 10 percent, to $7.97.

* Repurchased $152 million of common stock (11.3 million shares at an average price of $13.40 per share).