Huntington Bancshares' Earnings Drop Slightly

By Michael Calia 

Huntington Bancshares Inc. said its first-quarter profit and revenue declined slightly, although the bank experienced a jump in its average consumer loans.

The bank's revenue topped analysts' expectations.

Huntington--much like other regional lenders--has struggled with revenue recently, but it has nonetheless pursued growth through acquisitions. Earlier this month, the company agreed to buy 11 branches in Michigan from Bank of America Corp., while in March it closed its deal to buy Camco Financial Corp., a community bank with 22 branches in Ohio.

The bank also said it had authorized a $250 million share-buyback plan, which is about 10% larger than the repurchasing program it had recently completed.

For the first quarter, the Columbus, Ohio-based Huntington said it earned $149.1 million, or 17 cents a share, down from $153.3 million, or 17 cents a share, in the prior-year period. Revenue rose less than 1% to $691.9 million.

Analysts surveyed by Thomson Reuters had expected per-share earnings of 17 cents and revenue of $676 million.

Average loans outstanding improved 6.3% year-over-year to $43.4 billion in the period. Commercial loans rose 1.4% to $22.5 billion. Consumer loans--which include home equity, mortgage and auto loans--rose 12% to $20.9 billion, with auto lending leading the surge.

The bank's net charge-off rate was 0.40%, down from 0.51% in the year-ago period. The provision for credit losses stood at $24.6 million, compared with $24.3 million at the end of the fourth quarter and $29.6 million in last year's first quarter.

Net interest margin, a key profitability metric, fell to 3.27% from 3.42% a year earlier.

Shares of Huntington were inactive premarket. The stock closed at $9.47 Tuesday and is down 1.9% so far this year.

Write to Michael Calia at [e-mail]

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