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Huntington Bancshares reports net income

COLUMBUS — Huntington Bancshares Inc. reported net income for the 2019 third quarter of $372 million, a decrease of 2 percent from the year-ago quarter.

Earnings per common share for the 2019 third quarter were 34 cents, up 3 percent from the year-ago quarter. Tangible book value per common share as of 2019 third quarter-end was $8.25, a 17 percent year-over-year increase. Return on average assets was 1.37 percent, return on average common equity was 13.4 percent, and return on average tangible common equity was 17.3 percent.

“Our solid third quarter results reflect continued momentum across our businesses despite a challenging operating environment,” said Steve Steinour, chairman, president, and CEO. “We are pleased with 4 percent revenue growth, especially the growth in noninterest income. With the prevailing outlook for additional interest rate cuts, we remain committed to disciplined expense management and have taken actions to reduce our expense growth. We remain on track to deliver full-year positive operating leverage in 2019, and we are currently projecting positive operating leverage again in 2020.”

Consumer confidence remains at a high level and consumers continue to perform well, he said.

“Consistent with recent economic data pointing toward slowing growth, compounded by uncertainty related to trade and tariffs, we have seen a shift in tone from some of our manufacturing customers, which has impacted certain of their investments and expansions,” he said.

Steinour also said the company doesn’t foresee a recession in the near term.

“Our core earnings power, strong capital, aggregate moderate-to-low risk appetite, and long-term strategic alignment position us to withstand economic headwinds should they emerge,” Steinour said.

Third quarter 2019 highlights compared with 2018 third quarter:

* Fully-taxable equivalent total revenue increased $42 million, or 4 percent.

* Fully-taxable equivalent net interest income decreased $5 million, or 1 percent.

* Net interest margin decreased 12 basis points to 3.20 percent.

* Noninterest income increased $47 million, or 14 percent, driven by a $23 million, or 74 percent, increase in mortgage banking income.

* Noninterest expense increased $16 million, or 2 percent.

* Efficiency ratio of 54.7 percent, down from 55.3 percent.

* Average loans and leases increased $2.3 billion, or 3 percent, year-over-year, including a $1.5 billion, or 4 percent, increase in commercial loans and a $800 million, or 2 percent, increase in consumer loans.

* Average core deposits increased $1.7 billion, or 2 percent, year-over-year.

* Net charge-offs equated to 0.39 percent of average loans and leases, up from 0.16 percent.

* Nonperforming asset ratio of 0.64 percent, up from 0.55 percent.

* Common Equity Tier 1 risk-based capital ratio of 10.02 percent, up from 9.89 percent and consistent with our 9 percent to 10 percent operating guideline.

* Tangible common equity ratio of 8.00 percent, up from 7.25 percent.

* Tangible book value per common share increased $1.19, or 17 percent, to $8.25.

* Repurchased $68 million of common stock (5.2 million shares at an average price of $13.02 per share).

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