Huntington Bancshares - HBAN - Reports Earnings Better than Market Estimates

Huntington Bancshares Incorporated (NASDAQ: HBAN) reported 2012 full-year net income of $641.0 million, an increase of $98.4 million, or 18%, from the prior year. 2012 fourth quarter net income of $167.3 million was essentially unchanged from the prior quarter. Earnings per common share for the year and current quarter were $0.71 and $0.19, respectively, up $0.12 and unchanged from the prior periods.

Huntington also announced that the Board of Directors declared a quarterly cash dividend on its common stock of $0.04 per common share. The dividend is payable April 1, 2013, to shareholders of record on March 18, 2013.

HBAN - Specific highlights compared with 2011:

• 1.15% return on average assets, up from 1.01%


• $0.60, or 12%, increase in tangible book value per common share to $5.78


• 23.3 million shares, or 2.7% of average outstandings, repurchased at an average price of $6.36 per share


• $0.16 dividend paid per common share, a 2.5% dividend yield as of December 31, 2012


• $204.1 million, or 8%, increase in fully-taxable equivalent revenue


• $86.8 million, or 5%, increase in net interest income, reflecting:
  
  
  
  • 3.41% fully-taxable equivalent net interest margin, up 3 basis points
  
  
  • 3% growth in average total loans
  
  
  • 8% growth in average core deposits
  
  
  
  


• $117.2 million, or 12%, increase in noninterest income


• $107.4 million, or 6%, increase in noninterest expense


• Delivered positive operating leverage and a modest improvement in efficiency ratio


• 25% decline in nonaccrual loans to 1.00% of total loans and leases, down from 1.39%

• Net income and earnings per share essentially unchanged at $167.3 million and $0.19, respectively


• 1.19% return on average assets, unchanged from the prior quarter


• $40.6 million, or 6%, increase in fully-taxable equivalent revenue, reflecting:
  
  
  
  • 3.45% fully-taxable equivalent net interest margin, up 7 basis points
  
  
  • 3% annualized growth in average total loans
  
  
  • $17.1 million increase in mortgage banking income
  
  
  • $14.1 million increase in gain on sale of loans
  
  
  
  


• $12.3 million, or 3%, increase in noninterest expense


• 13.2 million shares repurchased at an average price of $6.33 per share