Exhibit 99.1
FOR IMMEDIATE RELEASE
SUBMITTED: OCTOBER 17, 2000
FOR FURTHER INFORMATION, CONTACT:
MEDIA ANALYSTS
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DOROTHY BROWNLEY (614) 480-4531 LAURIE COUNSEL (614) 480-3878
CHERI GRAY (614) 480-3803
HUNTINGTON BANCSHARES REPORTS
THIRD QUARTER 2000 EARNINGS
COLUMBUS, Ohio - Huntington Bancshares Incorporated (NASDAQ: HBAN;
www.huntington.com) today reported third quarter earnings of $83.0 million, or
$.33 per share, excluding a special charge, and corresponding year-to-date
earnings of $284.7 million, or $1.14 per share. The third quarter results
include $11.4 million, or $.03 per share, of securities gains, but exclude a
previously announced after-tax charge of $32.5 million, or $.13 per share, to
write-down residual values associated with Huntington's $3.0 billion auto lease
portfolio. On this same basis, Huntington's return on average assets (ROA) was
1.15% in the three months just ended and its return on average equity (ROE) was
14.04%. ROA and ROE were 1.45% and 19.07%, respectively, in the third quarter
one year ago. On a year-to-date basis for 2000, ROA was 1.32% and ROE was
16.87%, compared with a ROA of 1.43% and a ROE of 19.01% for the same nine
months of the prior year.
Including the special charge, net income was $50.5 million for the
quarter and $252.2 million for the first nine months of the year; earnings per
share were $.20 and $1.01, respectively. In the same periods last year, net
income totaled $105.6 million, or $.41 per share, and $307.1 million, or $1.20
per share.
"This quarter's net income and earnings per share levels, while
reductions from previous quarters, represent a base of core earnings from which
Huntington will grow," said Frank Wobst, chairman and chief executive officer of
Huntington Bancshares Incorporated. "We have a
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strengthened management team recently organized into a line of business
structure, expanded product lines and a disciplined sales focus across all lines
of business. These factors, together with strategic technology investments we
have made, should increase top-line revenue and shareholder value."
For comparative purposes versus prior periods, all subsequent growth
rates in this release exclude the current period's special charge and are
adjusted for the impact of the recent Empire Banc Corporation and J. Rolfe Davis
Insurance Agency acquisitions, securitization activities, and the fourth quarter
1999 credit card sale.
Total managed loans increased at an annualized rate of 9% from the
second quarter and were up 10% versus the third quarter of 1999. Growth rates in
the consumer portfolio were 22% linked quarter annualized and 17% on a
year-over-year basis, driven by home equity credit lines and automobile loans.
Commercial loans declined from the previous quarter, but were up 4% from a year
ago.
Customer demand for the new Premier deposit accounts, which are
variable rate accounts designed to attract larger deposit relationships, has
been strong, with $2.0 billion in balances at September 30 and an attractive
average balance per customer account of $14,000. In addition, Huntington further
refined its deposit product set in the third quarter by adding free checking and
introducing money manager relationship products, which reward customers with
tailored deposit pricing, product options and fee waivers based on the
customer's total banking and investment relationship with Huntington. Third
quarter total core deposits were consistent with second quarter and last year's
third quarter levels.
The net interest margin increased two basis points to 3.74% for the
third quarter following three consecutive quarters of decline. Net interest
income totaled $235.9 million in the recent three months, compared with $232.8
million in the second quarter of 2000, representing an annualized increase of
7%, indicative of solid loan growth and improved core funding.
Non-interest income for the quarter was $121.7 million, including
securities gains. Non-interest income (before securities gains) increased 3%
from the third quarter of last year, excluding mortgage banking revenues, which
declined because of higher interest rates.
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Huntington continues to see strength in both electronic banking and insurance
income, two areas of particular focus. Electronic banking was up 15% from the
1999 third quarter, while insurance income was up 13% for the same period.
Non-interest expense totaled $213.6 million in the third quarter,
compared with $198.1 million in the second quarter and $206.2 million one year
ago. Excluding the impact of acquisitions, expenses increased 2% versus one year
ago, driven primarily by higher facility and equipment costs related to the new
operations center opened in the fall of 1999 and other expansion-related
activities.
Credit quality, as measured by non-performing assets, improved slightly
during the quarter, but charge-offs increased. Non-performing assets declined
$6.6 million to $88.5 million in the recent three months, representing .44% of
total loans plus other real estate at September 30 versus .46% in the second
quarter 2000 and .47% in the third quarter 1999. At quarter-end, the allowance
for loan losses remained at 1.45% of total loans, consistent with the prior
quarter and only slightly lower than 1.48% at September 30, 1999. Coverage of
non-performing assets increased slightly to 327% versus 307% in the previous
quarter and 316% for the third quarter a year ago.
Net charge-offs on a managed basis for the third quarter totaled .45%
of average loans, up from .30% in the previous quarter. Consumer charge-offs
increased from .46% in the prior quarter to .68% in the current quarter. Credit
losses in the commercial portfolio were .24% in the current quarter, an increase
from .15% in the previous quarter and .18% a year ago. Consumer and commercial
loss experience in the quarter is within management's range of acceptable
parameters given the portfolio mix. These increases should be viewed in the
context of the unusually low charge-offs reported in the second quarter.
Huntington's capital position continued to be strong, with average
equity equal to 8.20% of average assets in the quarter just ended versus 7.63% a
year earlier. In addition, Huntington's capital ratios continue to exceed
regulatory requirements for a "well-capitalized" institution.
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A conference call to discuss third quarter results will be held today
at 2:00 p.m. Eastern and will be available via a live Internet Webcast at
www.vcall.com. The slides for the conference call, along with management's
comments, will be filed with the Securities and Exchange Commission on Form 8-K.
A version of this press release containing supplemental tables is
available via PR Newswire's Fax-on-Demand system. Please call (800) 753-0352 and
enter extension 756. The financial tables are also included in the 8-K mentioned
above. For faxed copies of all other news releases, please call (800) 758-5804
extension 423276.
Huntington Bancshares Incorporated is a $29 billion regional bank
holding company headquartered in Columbus, Ohio. Through its affiliated
companies, Huntington has over 134 years of serving the financial needs of its
customers. Huntington provides innovative products and services through over 600
offices in Florida, Indiana, Kentucky, Maryland, Michigan, New Jersey, Ohio and
West Virginia. International banking services are made available through the
headquarters office in Columbus and additional offices located in the Cayman
Islands and Hong Kong. Huntington also offers products and services online at
www.huntington.com; through its technologically advanced, 24-hour telephone
bank, and through its network of more than 1,400 ATMs.
FORWARD-LOOKING STATEMENT DISCLOSURE:
This press release contains certain forward-looking statements,
including certain plans, expectations, goals, and projections, which are subject
to numerous assumptions, risks, and uncertainties. Actual results could differ
materially from those contained or implied by such statements for a variety of
factors including: changes in economic conditions; movements in interest rates;
competitive pressures on product pricing and services; success and timing of
business strategies; the successful integration of acquired businesses; the
nature, extent, and timing of governmental actions and reforms; and extended
disruption of vital infrastructure.
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HUNTINGTON BANCSHARES INCORPORATED
CONSOLIDATED COMPARATIVE SUMMARY
(in thousands, except per share amounts)
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CONSOLIDATED RESULTS OF OPERATIONS
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THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
--------------------- CHANGE ------------------------ CHANGE
2000 1999 % 2000 1999 %
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Interest Income $535,791 $516,294 3.8 % $1,570,844 $1,510,486 4.0 %
Interest Expense 299,922 247,863 21.0 861,478 721,386 19.4
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Net Interest Income 235,869 268,431 (12.1) 709,366 789,100 (10.1)
Provision for Loan Losses 26,396 22,076 19.6 57,931 68,407 (15.3)
Securities and Securitization Gains 11,379 537 N.M. 32,127 5,067 N.M.
Non-Interest Income 110,273 115,117 (4.2) 330,883 337,735 (2.0)
Non-Interest Expense 213,585 206,189 3.6 611,767 610,433 0.2
Special Charge 50,000 -- N.M. 50,000 -- N.M.
Provision for Income Taxes 17,010 50,233 (66.1) 100,454 145,928 (31.2)
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NET INCOME $ 50,530 $105,587 (52.1)% $ 252,224 $ 307,134 (17.9)%
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OPERATING EARNINGS (1)
Net Income $ 83,030 $105,587 (21.4)% $ 284,724 $ 307,134 (7.3)%
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Net Income per Common Share (2)
Diluted $0.33 $0.41 (19.5)% $1.14 $1.20 (5.0)%
Diluted--Cash Basis (3) $0.36 $0.44 (18.2)% $1.24 $1.29 (3.9)%
Return On:
Average Total Assets 1.15 % 1.45 % 1.32 % 1.43 %
Average Shareholders' Equity 14.04 % 19.07 % 16.87 % 19.01 %
PER COMMON SHARE AMOUNTS - REPORTED (2)
Net Income per Common Share--Diluted $0.20 $0.41 (51.2)% $1.01 $1.20 (15.8)%
Cash Dividends Declared $0.20 $0.18 11.1 % $0.56 $0.50 12.0 %
Shareholders' Equity (period end) $9.10 $8.54 6.6 % $9.10 $8.54 6.6 %
AVERAGE COMMON SHARES - DILUTED (2) 252,033 255,216 (1.2)% 248,909 256,138 (2.8)%
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KEY PERFORMANCE RATIOS
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THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
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2000 1999 2000 1999
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Return On:
Average Total Assets 0.70 % 1.45 % 1.17 % 1.43 %
Average Shareholders' Equity 8.55 % 19.07 % 14.94 % 19.01 %
Efficiency Ratio 58.38 % 51.02 % 55.71 % 51.36 %
Net Interest Margin 3.74 % 4.22 % 3.74 % 4.18 %
Average Equity/Average Assets 8.20 % 7.63 % 7.84 % 7.54 %
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CONSOLIDATED STATEMENT OF CONDITION DATA
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THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------------------- CHANGE ------------------------ CHANGE
2000 1999 % 2000 1999 %
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Average Total Loans $20,623,133 $20,263,344 1.8 % $20,728,548 $19,945,422 3.9 %
Average Total Deposits $19,782,512 $19,199,254 3.0 $19,749,348 $19,134,744 3.2
Average Total Assets $28,697,506 $28,800,585 (0.4) $28,742,341 $28,652,586 0.3
Average Shareholders' Equity $ 2,351,914 $ 2,196,977 7.1 $ 2,254,590 $ 2,159,948 4.4
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REGULATORY CAPITAL RATIOS (4) AND ASSET QUALITY
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AT AT
SEPTEMBER 30, SEPTEMBER 30,
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2000 1999 2000 1999
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Tier I Risk-Based Capital 7.19% 7.32% Non-performing loans (NPLs) $ 76,512 $ 78,250
Total non-performing assets (NPAs) $ 88,494 $ 93,322
Total Risk-Based Capital 10.62% 10.62% Allowance for loan losses/total loans 1.45 % 1.48 %
Allowance for loan losses/NPLs 385.15 % 377.78 %
Tier I Leverage 6.80% 6.58% Allowance for loan losses and other
real estate/NPAs 326.77 % 315.82 %
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(1) Reported results, as adjusted, exclude the impact of the 3Q 2000 special charge, net of (4) Estimated.
related taxes. N.M. - Not Meaningful.
(2) Adjusted for the ten percent stock dividend distributed July 2000.
(3) Tangible or "Cash Basis" net income excludes amortization of goodwill and other intangibles,
net of income taxes.