COLUMBUS, Ohio, April 22, 2021 /PRNewswire/ --
2021 First-Quarter Highlights (compared with 2020 First
Quarter):
- Net income was $532 million, up
$484 million from the year ago
quarter.
- Earnings per common share (EPS) for the quarter were
$0.48, an increase of $0.45.
- Return on average assets for the quarter was 1.76%, return on
average common equity was 18.7%, and return on average tangible
common equity was 23.7%.
- Tangible book value per common share increased $0.36, or 4%, to $8.64.
- Fully-taxable equivalent total revenue increased $216 million, or 19%.
-
- Fully-taxable equivalent net interest income increased
$182 million, or 23%, including the
benefit of the $144 million
mark-to-market of interest rate caps and $45
million of accelerated accretion from PPP loan
forgiveness.
- Net interest margin increased 34 basis points to 3.48%,
including the 51 basis point benefit of the mark-to-market of
interest rate caps and the 16 basis point benefit from accelerated
accretion from PPP loan forgiveness.
- Noninterest income increased $34
million, or 9%, driven by a $42
million, or 72%, increase in mortgage banking income
- Noninterest expense increased $141
million, or 22%, including approximately $21 million of Significant Items expense related
to the TCF acquisition.
- Efficiency ratio of 57.0%, up from 55.4%.
- Average loans and leases increased $4.6
billion, or 6%.
-
- Average commercial loans increased $3.9
billion, or 11%, and average consumer loans increased
$0.6 billion, or 2%.
- Average core deposits increased $16.3
billion, or 20%.
-
- Average demand deposits increased $14.7
billion, or 36%.
- Net charge-offs equated to 0.32% of average loans and leases,
down from 0.62%.
- Nonperforming asset ratio of 0.68%, down from 0.75%.
- Provision for credit losses decreased $501 million year-over-year to $(60) million.
- Allowance for credit losses (ACL) increased $199 million to $1.7
billion, or 2.17% of total loans and leases.
- Common Equity Tier 1 (CET1) risk-based capital ratio of 10.33%,
up from 9.47% and modestly above our 9% to 10% operating
guideline.
- Tangible common equity (TCE) ratio of 7.11%, down from
7.52%.
- In March, Huntington shareholders approved the planned
acquisition of TCF Financial.
- In March, Huntington announced the planned consolidation of 44
Meijer in-store branches, which are expected to be completed in the
2021 second quarter.
Huntington Bancshares Incorporated (Nasdaq: HBAN;
www.huntington.com) reported net income for the 2021 first quarter
of $532 million, an increase of
$484 million from the year-ago
quarter. Earnings per common share for the 2021 first quarter
were $0.48, up $0.45 from the year-ago quarter. Tangible
book value per common share as of 2021 first quarter-end was
$8.64, a 4% year-over-year
increase. Return on average assets was 1.76%, return on
average common equity was 18.7%, and return on average tangible
common equity was 23.7%. First-quarter results were favorably
impacted by a $144 million positive
mark-to-market of interest rate caps within the hedging program,
$60 million of negative credit
provisioning related to the improving economic outlook, and
$45 million of accelerated accretion
from Paycheck Protection Program (PPP) loan forgiveness, partially
offset by $21 million of costs
related to the pending TCF Financial acquisition.
CEO Commentary:
"Our first-quarter results reflected a
very strong beginning to what will be an important year for
Huntington. The economic recovery continues to gain its
footing, and we are seeing encouraging signs throughout our
footprint and our individual businesses. Our lending
pipelines are up across the board, and customer sentiment is
improving—supporting our confidence in more robust loan demand
later in the year. Additionally, we continue to see strong
core deposit inflows and expect this elevated level of liquidity
will remain for some time," said Steve
Steinour, chairman, president, and CEO.
"We continue to make substantial progress with our pending
acquisition of TCF. We recently received approval of the
transaction from the shareholders of both companies. Our
integration-planning teams are on track for a conversion later this
year. We anticipate that we will receive the regulatory
approvals and complete the acquisition as planned late in the
second quarter."
"Our overall confidence in our performance and long-term
strategy continues to drive our progress in extending digital
capabilities across all parts of Huntington – from the development
of digital-only tools in the Consumer and Business Bank to digital
sales and service enhancements in Commercial Banking, Wealth
Management, and Vehicle Finance. The increased digital and
product investments will further differentiate the experience we
provide to existing and acquired customers on our journey to become
the leading people-first, digitally powered bank in the
country."
The first quarter 2021 earnings materials, including the
detailed earnings press release, quarterly financial supplement,
and conference call slide presentation, are available on the
Investor Relations section of Huntington's website,
http://www.huntington.com. In addition, the financial results
will be furnished on a Form 8-K that will be available on the
Securities and Exchange Commission website at www.sec.gov.
Conference Call / Webcast Information
Huntington's senior management will host an earnings conference
call on April 22, 2021, at 8:30 a.m.
(Eastern Daylight Time). The call may be accessed via a live
Internet webcast at the Investor Relations section of Huntington's
website, www.huntington.com, or through a dial-in telephone number
at (877) 407-8029; Conference ID #13716636. Slides will
be available in the Investor Relations section of Huntington's
website about an hour prior to the call. A replay of the webcast
will be archived in the Investor Relations section of Huntington's
website. A telephone replay will be available approximately
two hours after the completion of the call through April 30,
2021 at (877) 660-6853 or (201) 612-7415; conference ID
#13716636.
About Huntington
Huntington Bancshares Incorporated is a regional bank holding
company headquartered in Columbus,
Ohio, with $126 billion of
assets and a network of 814 full-service branches, including 11
Private Client Group offices, and 1,314 ATMs across seven
Midwestern states. Founded in 1866, The Huntington National
Bank and its affiliates provide consumer, small business,
commercial, treasury management, wealth management, brokerage,
trust, and insurance services. Huntington also provides
vehicle finance, equipment finance, national settlement, and
capital market services that extend beyond its core states.
Visit huntington.com for more information.
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SOURCE Huntington Bancshares Incorporated