Huntington Bancshares Reports First Quarter 2001 Earnings

Apr 17, 2001, 01:00 ET from Huntington Bancshares Incorporated

    COLUMBUS, Ohio, April 17 /PRNewswire/ --
 Huntington Bancshares Incorporated (Nasdaq: HBAN) ( www.huntington.com ) today
 reported first quarter earnings of $67.9 million, or $.27 per share, compared
 with $76.2 million, or $.30 per share, in the fourth quarter 2000 and
 $104.2 million, or $.42 per share, a year ago.  Return on average assets (ROA)
 was .97% and return on average equity (ROE) was 11.53% for the quarter versus
 1.06% and 12.89% for the fourth quarter 2000 and 1.45% and 18.99% in the year-
 ago quarter.
     "These results are clearly not acceptable," said Thomas Hoaglin, president
 and chief executive officer of Huntington Bancshares Incorporated.  "We must
 pick up the pace of growing revenues and reducing expenses, while maintaining
 our credit quality in this challenging environment.  Clearly, changes will be
 necessary.  However, I am confident my Huntington associates will welcome
 change in the context of a positive new direction that I believe will produce
 stronger performance."
     Net interest income increased $10.1 million to $243.1 million from the
 fourth quarter as a result of net interest margin expansion and was at the
 highest level since the fourth quarter of 1999.  The margin expanded 23 basis
 points, from 3.70% in the fourth quarter to 3.93% in the current quarter,
 benefiting from the 1.50% decline in short-term interest rates during the
 quarter and the continued reduction of the investment portfolio.
     Total managed loan growth during the quarter slowed to an annualized
 6% rate from the fourth quarter rate of 11%.  The slowdown in economic
 conditions and the volatility in the financial markets significantly impacted
 consumer loan growth, with these loans increasing at an annualized rate of 5%
 versus 16% in the fourth quarter.  The softening in consumer loan growth was
 particularly pronounced in the automobile loan and leasing category, where the
 annualized growth rate slowed from 16% in the fourth quarter to zero in the
 current quarter.  Home equity loans, however, increased at a 14% annualized
 rate from the previous quarter in spite of the significant increase in first
 mortgage refinancing activity.  Commercial and commercial real estate loans
 increased at a combined 8% rate in the first quarter versus 6% in the prior
 quarter.
     Non-interest income, excluding securities gains, was $115.6 million for
 the quarter, down from $129.7 million in the preceding three months.
 Securitization income declined $8.8 million from the unusually high level
 reported in the fourth quarter, primarily due to a reduction in the volume of
 loans securitized during the recent period.  Most other categories of
 non-interest income were also down slightly, with the exception of brokerage
 revenue, which was up 10% as a result of stronger annuity sales.
     Non-interest expense totaled $234.1 million in the first quarter, an
 increase of $10.2 million from the previous three months.  Significant factors
 that contributed to the increase were:  higher personnel expenses; a
 $4.2 million loss from the sale by Huntington's Money Market Mutual Fund of
 Pacific Gas & Electric commercial paper, for which Huntington fully reimbursed
 the fund; and, the premiums paid in the recent quarter to insure the residual
 values underlying Huntington's vehicle leases against possible market
 declines.  The residual value insurance program provides Huntington with
 first-dollar protection against possible declines in Automotive Lease Guide
 (ALG) values.  Huntington purchased insurance on both its existing leases
 (subject to a lifetime cap of $120 million) as well as on those to be
 originated in the future.
     Reported net charge-offs, as a percent of average loans, totaled .55% in
 the first quarter versus .50% in the previous three months.  All of the
 increase occurred in both the commercial and commercial real estate
 portfolios, with charge-offs on consumer loans unchanged during the quarter.
 Non-performing assets increased $19.5 million from the fourth quarter to
 $124.9 million, representing .60% of total loans and other real estate at
 quarter-end versus $105.4 million or .51% at the end of the fourth quarter.
 The allowance for loan losses was 1.45% of total loans, unchanged since the
 fourth quarter of 1999.
     The equity to assets ratio increased from 7.62% for the first quarter last
 year to 8.46% for first quarter 2001, resulting from the restructuring of the
 balance sheet that has taken place over the last year.   Huntington's capital
 ratios continue to exceed regulatory requirements for a "well-capitalized"
 institution.
     A conference call to discuss first quarter results will be held today at
 11:00 a.m. Eastern and will be available via a live Internet Webcast at
 www.streetfusion.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 as well as at www.huntington-ir.com .  For faxed copies of all
 other news releases, please call (800) 758-5804 extension 423276.
     Huntington Bancshares Incorporated is a $28 billion regional bank holding
 company headquartered in Columbus, Ohio.  Through its affiliated companies,
 Huntington has more than 135 years of serving the financial needs of its
 customers.  Huntington provides innovative products and services through more
 than 500 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.
     The thirty-fifth annual meeting of shareholders of the corporation will
 held in the Capitol Square banking office lobby, 17 South High Street,
 Columbus, Ohio on Thursday, April 19, 2001 at 5:00 p.m.  Eastern time.
 
     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.  All forward-looking
 statements included in this news release are based on information available at
 the time of the release.  Huntington assumes no obligation to update any
 forward-looking statement.
 
 
 
 
                       HUNTINGTON BANCSHARES INCORPORATED
                        CONSOLIDATED COMPARATIVE SUMMARY
                    (in thousands, except per share amounts)
 
                         Consolidated Results of Operations
 
                                       Three Months Ended
                                            March 31,          Change
                                       2001         2000          %
 
     Interest Income                 $517,975     $515,557       0.5 %
     Interest Expense                 274,851      274,866         -
     Net Interest Income              243,124      240,691       1.0
     Provision for Loan Losses         33,464       15,701     113.1
     Securities Gains                   2,078       24,763      N.M.
     Non-Interest Income              115,646      100,931      14.6
     Non-Interest Expense             234,090      200,106      17.0
     Income Before Income Taxes        93,294      150,578     (38.0)
     Provision for Income Taxes        25,428       46,405     (45.2)
     Net Income                       $67,866     $104,173     (34.9)%
 
     Per Common Share Amounts (a)
       Net Income per Common Share
         Basic                          $0.27        $0.42     (35.7)%
         Diluted                        $0.27        $0.42     (35.7)%
         Diluted - Cash Basis (b)       $0.30        $0.44     (31.8)%
 
     Cash Dividends Declared            $0.20        $0.18      11.1 %
       Book value at end of period      $9.58        $8.60      11.4 %
 
     Average Common Shares (a)
       Basic                          250,998      247,974       1.2 %
       Diluted                        251,510      249,139       1.0 %
 
                              Key Operating Ratios
 
                                               Three Months Ended
                                                    March 31,
                                             2001              2000
     Return On:
       Average Total Assets                  0.97%             1.45%
       Average Shareholders' Equity         11.53%            18.99%
     Efficiency Ratio                       61.95%            53.93%
     Net Interest Margin                     3.93%             3.78%
 
 
                    Consolidated Statement of Condition Data
 
                             Average for Three Months
                                  Ended March 31,      Change
                                 2001         2000       %
     Loans - Reported        $20,703,769  $20,797,762  (0.5)%
     Loans - Managed          22,061,281   20,799,207   6.1
     Total Deposits           19,065,407   19,790,564  (3.7)
     Assets - Reported        28,236,740   28,952,570  (2.5)
     Shareholders' Equity      2,387,653    2,205,921   8.2
 
 
                                   At March 31,       Change
                                 2001         2000       %
     Loans - Reported        $20,870,648  $20,531,039   1.7 %
     Loans - Managed          22,210,181   21,010,669   5.7
     Total Deposits           19,130,157   19,779,364  (3.3)
     Assets - Reported        28,441,188   28,407,979   0.1
     Shareholders' Equity      2,405,256    2,098,823  14.6
 
 
 
                         Capital Ratios and Asset Quality
                                                               At
                              March 31,                     March 31,
                             2001    2000                2001       2000
                                           Non-
                                           performing
       Tier I Risk-Based                   loans
        Capital (c)          7.20%   7.23% (NPLs)      $110,855    $78,307
                                           Total non-
                                           performing
       Total Risk-Based                    assets
        Capital (c)         10.33%  10.90% (NPAs)      $124,886    $92,211
       Tier I Leverage (c)   7.13%   6.45% Allowance
                                           for loan
                                           losses/total
                                           loans           1.45 %     1.45 %
                                           Allowance
       Average                             for loan
        Equity/Assets        8.46%   7.62% losses/NPLs   272.23 %   378.95 %
       Tangible                            Allowance for
                                           loan losses
        Equity/Assets        6.01%   5.49% and other
                                           real
                                           estate/NPAs   239.42 %   316.30 %
 
     (a) Adjusted for stock dividends and stock splits, as applicable.
     (b) Tangible or "Cash Basis" net income excludes amortization of
         goodwill, net of income taxes.
     (c)  Estimated.
     N.M.- Not Meaningful
 
 

SOURCE Huntington Bancshares Incorporated
    COLUMBUS, Ohio, April 17 /PRNewswire/ --
 Huntington Bancshares Incorporated (Nasdaq: HBAN) ( www.huntington.com ) today
 reported first quarter earnings of $67.9 million, or $.27 per share, compared
 with $76.2 million, or $.30 per share, in the fourth quarter 2000 and
 $104.2 million, or $.42 per share, a year ago.  Return on average assets (ROA)
 was .97% and return on average equity (ROE) was 11.53% for the quarter versus
 1.06% and 12.89% for the fourth quarter 2000 and 1.45% and 18.99% in the year-
 ago quarter.
     "These results are clearly not acceptable," said Thomas Hoaglin, president
 and chief executive officer of Huntington Bancshares Incorporated.  "We must
 pick up the pace of growing revenues and reducing expenses, while maintaining
 our credit quality in this challenging environment.  Clearly, changes will be
 necessary.  However, I am confident my Huntington associates will welcome
 change in the context of a positive new direction that I believe will produce
 stronger performance."
     Net interest income increased $10.1 million to $243.1 million from the
 fourth quarter as a result of net interest margin expansion and was at the
 highest level since the fourth quarter of 1999.  The margin expanded 23 basis
 points, from 3.70% in the fourth quarter to 3.93% in the current quarter,
 benefiting from the 1.50% decline in short-term interest rates during the
 quarter and the continued reduction of the investment portfolio.
     Total managed loan growth during the quarter slowed to an annualized
 6% rate from the fourth quarter rate of 11%.  The slowdown in economic
 conditions and the volatility in the financial markets significantly impacted
 consumer loan growth, with these loans increasing at an annualized rate of 5%
 versus 16% in the fourth quarter.  The softening in consumer loan growth was
 particularly pronounced in the automobile loan and leasing category, where the
 annualized growth rate slowed from 16% in the fourth quarter to zero in the
 current quarter.  Home equity loans, however, increased at a 14% annualized
 rate from the previous quarter in spite of the significant increase in first
 mortgage refinancing activity.  Commercial and commercial real estate loans
 increased at a combined 8% rate in the first quarter versus 6% in the prior
 quarter.
     Non-interest income, excluding securities gains, was $115.6 million for
 the quarter, down from $129.7 million in the preceding three months.
 Securitization income declined $8.8 million from the unusually high level
 reported in the fourth quarter, primarily due to a reduction in the volume of
 loans securitized during the recent period.  Most other categories of
 non-interest income were also down slightly, with the exception of brokerage
 revenue, which was up 10% as a result of stronger annuity sales.
     Non-interest expense totaled $234.1 million in the first quarter, an
 increase of $10.2 million from the previous three months.  Significant factors
 that contributed to the increase were:  higher personnel expenses; a
 $4.2 million loss from the sale by Huntington's Money Market Mutual Fund of
 Pacific Gas & Electric commercial paper, for which Huntington fully reimbursed
 the fund; and, the premiums paid in the recent quarter to insure the residual
 values underlying Huntington's vehicle leases against possible market
 declines.  The residual value insurance program provides Huntington with
 first-dollar protection against possible declines in Automotive Lease Guide
 (ALG) values.  Huntington purchased insurance on both its existing leases
 (subject to a lifetime cap of $120 million) as well as on those to be
 originated in the future.
     Reported net charge-offs, as a percent of average loans, totaled .55% in
 the first quarter versus .50% in the previous three months.  All of the
 increase occurred in both the commercial and commercial real estate
 portfolios, with charge-offs on consumer loans unchanged during the quarter.
 Non-performing assets increased $19.5 million from the fourth quarter to
 $124.9 million, representing .60% of total loans and other real estate at
 quarter-end versus $105.4 million or .51% at the end of the fourth quarter.
 The allowance for loan losses was 1.45% of total loans, unchanged since the
 fourth quarter of 1999.
     The equity to assets ratio increased from 7.62% for the first quarter last
 year to 8.46% for first quarter 2001, resulting from the restructuring of the
 balance sheet that has taken place over the last year.   Huntington's capital
 ratios continue to exceed regulatory requirements for a "well-capitalized"
 institution.
     A conference call to discuss first quarter results will be held today at
 11:00 a.m. Eastern and will be available via a live Internet Webcast at
 www.streetfusion.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 as well as at www.huntington-ir.com .  For faxed copies of all
 other news releases, please call (800) 758-5804 extension 423276.
     Huntington Bancshares Incorporated is a $28 billion regional bank holding
 company headquartered in Columbus, Ohio.  Through its affiliated companies,
 Huntington has more than 135 years of serving the financial needs of its
 customers.  Huntington provides innovative products and services through more
 than 500 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.
     The thirty-fifth annual meeting of shareholders of the corporation will
 held in the Capitol Square banking office lobby, 17 South High Street,
 Columbus, Ohio on Thursday, April 19, 2001 at 5:00 p.m.  Eastern time.
 
     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.  All forward-looking
 statements included in this news release are based on information available at
 the time of the release.  Huntington assumes no obligation to update any
 forward-looking statement.
 
 
 
 
                       HUNTINGTON BANCSHARES INCORPORATED
                        CONSOLIDATED COMPARATIVE SUMMARY
                    (in thousands, except per share amounts)
 
                         Consolidated Results of Operations
 
                                       Three Months Ended
                                            March 31,          Change
                                       2001         2000          %
 
     Interest Income                 $517,975     $515,557       0.5 %
     Interest Expense                 274,851      274,866         -
     Net Interest Income              243,124      240,691       1.0
     Provision for Loan Losses         33,464       15,701     113.1
     Securities Gains                   2,078       24,763      N.M.
     Non-Interest Income              115,646      100,931      14.6
     Non-Interest Expense             234,090      200,106      17.0
     Income Before Income Taxes        93,294      150,578     (38.0)
     Provision for Income Taxes        25,428       46,405     (45.2)
     Net Income                       $67,866     $104,173     (34.9)%
 
     Per Common Share Amounts (a)
       Net Income per Common Share
         Basic                          $0.27        $0.42     (35.7)%
         Diluted                        $0.27        $0.42     (35.7)%
         Diluted - Cash Basis (b)       $0.30        $0.44     (31.8)%
 
     Cash Dividends Declared            $0.20        $0.18      11.1 %
       Book value at end of period      $9.58        $8.60      11.4 %
 
     Average Common Shares (a)
       Basic                          250,998      247,974       1.2 %
       Diluted                        251,510      249,139       1.0 %
 
                              Key Operating Ratios
 
                                               Three Months Ended
                                                    March 31,
                                             2001              2000
     Return On:
       Average Total Assets                  0.97%             1.45%
       Average Shareholders' Equity         11.53%            18.99%
     Efficiency Ratio                       61.95%            53.93%
     Net Interest Margin                     3.93%             3.78%
 
 
                    Consolidated Statement of Condition Data
 
                             Average for Three Months
                                  Ended March 31,      Change
                                 2001         2000       %
     Loans - Reported        $20,703,769  $20,797,762  (0.5)%
     Loans - Managed          22,061,281   20,799,207   6.1
     Total Deposits           19,065,407   19,790,564  (3.7)
     Assets - Reported        28,236,740   28,952,570  (2.5)
     Shareholders' Equity      2,387,653    2,205,921   8.2
 
 
                                   At March 31,       Change
                                 2001         2000       %
     Loans - Reported        $20,870,648  $20,531,039   1.7 %
     Loans - Managed          22,210,181   21,010,669   5.7
     Total Deposits           19,130,157   19,779,364  (3.3)
     Assets - Reported        28,441,188   28,407,979   0.1
     Shareholders' Equity      2,405,256    2,098,823  14.6
 
 
 
                         Capital Ratios and Asset Quality
                                                               At
                              March 31,                     March 31,
                             2001    2000                2001       2000
                                           Non-
                                           performing
       Tier I Risk-Based                   loans
        Capital (c)          7.20%   7.23% (NPLs)      $110,855    $78,307
                                           Total non-
                                           performing
       Total Risk-Based                    assets
        Capital (c)         10.33%  10.90% (NPAs)      $124,886    $92,211
       Tier I Leverage (c)   7.13%   6.45% Allowance
                                           for loan
                                           losses/total
                                           loans           1.45 %     1.45 %
                                           Allowance
       Average                             for loan
        Equity/Assets        8.46%   7.62% losses/NPLs   272.23 %   378.95 %
       Tangible                            Allowance for
                                           loan losses
        Equity/Assets        6.01%   5.49% and other
                                           real
                                           estate/NPAs   239.42 %   316.30 %
 
     (a) Adjusted for stock dividends and stock splits, as applicable.
     (b) Tangible or "Cash Basis" net income excludes amortization of
         goodwill, net of income taxes.
     (c)  Estimated.
     N.M.- Not Meaningful
 
 SOURCE  Huntington Bancshares Incorporated