HUNTINGTON BANCSHARES EX-99
Published on October 12, 1995
NEWSRELEASE [LOGO]
HUNTINGTON
BANKS
FOR IMMEDIATE RELEASE For Further Information, Contact:
Submitted: October 11, 1995 Jacqueline Thurston (614) 480-3878
HUNTINGTON BANCSHARES REPORTS
18% INCREASE IN THIRD QUARTER EARNINGS
COLUMBUS, Ohio -- Huntington Bancshares Incorporated (NASDAQ: HBAN)
today reported net income of $65.9 million, or $.48 per share, for the third
quarter of 1995 compared with $55.9 million, or $.41 per share for the same
period one year ago. For the first nine months of the year, net income was
$179.0 million, or $1.29 per share versus $190.1 million, or $1.40 per share in
the same period of 1994.
Both return on average assets (ROA) and return on average equity (ROE)
continued to be strong. ROA for the third quarter and first nine months of
1995 were 1.34% and 1.27%, respectively. ROE for the most recent quarter and
first nine months of 1995 were 17.03% and 15.75%, respectively.
"We are pleased with the results of the past quarter. It represents an
18.0% increase in earnings over the third quarter of last year and the third
consecutive quarter in 1995 of reporting increased net income. This
improvement follows the downturn in earnings experienced by Huntington and
other banks in the industry during the second half of 1994," stated Frank
Wobst chairman and chief executive officer of Huntington Bancshares
Incorporated. "Huntington is benefiting from solid loan growth and lower
non-interest expenses. These results are particularly pleasing in view of the
continuing competitive marketplace."
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Huntington's loan volume continued to be impressive during the third
quarter with average total loans increasing 13.2% from the same period in 1994.
Strong loan growth was experienced across the board with average commercial
loans up 15.2%, consumer loans up 12.1% and lease financing up 30.1% from the
third quarter one year ago.
Net interest income during the recent quarter was $186.6 million, up
from $183.6 million in the same period last year. The improvement in net
interest income can be attributed to the higher level of earning assets which
resulted from significant loan growth and a larger investment securities
portfolio. The net interest margin in the third quarter was 4.18%, only 3
basis points less than the previous quarter. Huntington expects that the
margin will continue to decline modestly in the fourth quarter primarily due to
the purchase of additional investments, competitive pressure on loan pricing
and changes in deposit mix.
Non-interest income, excluding securities transactions, for the third
quarter and first nine months of 1995 was $58.9 million and $171.3 million,
compared with $53.1 million and $168.8 million for the corresponding periods
one year ago. The quarter-to-quarter increase was driven by improvements in
all major categories. As reported in the second quarter of this year,
restructuring and other initiatives have stabilized the mortgage company and it
is currently operating profitably.
Non-interest expense in the third quarter of 1995 was $138.9 million
representing an 8.3% drop from the same three months in 1994 and reflects the
fourth consecutive quarter that non-interest expense has been reduced. Current
quarter earnings were not impacted by the
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reduction in the FDIC assessment rate and refund of amounts previously paid.
This benefit was offset by Huntington's decision to accrue for costs associated
with a likely higher assessment rate on SAIF deposits. A decline of 5.1% in
non-interest expense occurred from the first nine months of 1994 to the
corresponding period this year. The decreases were a direct result of
initiatives begun in 1994 to reduce operating costs by restructuring certain
business activities including the retail delivery system and the mortgage
company. Moreover, these cost reductions were achieved despite the completion
of three mergers during 1995 and were primarily attributable to reduced
personnel costs.
Huntington's asset quality measures remain among the best of the
largest banking companies in the country. Non-performing loans declined to
$46.3 million, or .34% of total loans, at September 30, 1995, compared with
$53.9 million or .45% of total loans at the same time last year. Other real
estate also declined over the past twelve months, from $51.6 million to $23.7
million. Non-performing assets as a percent of total loans and other real
estate were .52% at the end of the most recent quarter, down significantly from
.88% one year ago. Net charge-offs, as a percent of average total loans, were
only .31% and .24%, respectively, during the third quarter and first nine
months of 1995.
Huntington's allowance for loan losses totaled $198.6 million at
September 30, 1995, or 1.48% of total loans and represented 429% of
non-performing loans; when combined with the allowance for other real estate,
it was 263% of total non-performing assets.
The company continues to enjoy strong capital levels. Huntington's
average equity to average assets ratio was 7.87% for the third quarter and
8.10% for the first nine months of 1995.
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The company's Tier I and total risk-based capital ratios were 8.46% and 12.17%,
respectively, and its Tier I leverage ratio was 6.96% at September 30, 1995.
Huntington's capital ratios continue to exceed the regulatory requirements to
be considered a "well-capitalized" bank holding company.
Huntington Bancshares is a regional bank holding company headquartered
in Columbus, Ohio with assets in excess of $20 billion. The company's banking
subsidiaries operate 327 offices in Ohio, Florida, Indiana, Kentucky, Michigan,
Pennsylvania and West Virginia. Huntington's mortgage, trust, investment
banking, and automobile finance subsidiaries manage 72 offices in the seven
states mentioned as well as Georgia, Illinois, Maryland, New Jersey, North
Carolina, Texas and Virginia.
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HUNTINGTON BANCSHARES INCORPORATED
COMPARATIVE SUMMARY (CONSOLIDATED)
(in thousands of dollars, except per share amounts)