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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
__________________________________________
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 or 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
__________________________________________
DATE OF REPORT: OCTOBER 11, 1995
__________________________________________
HUNTINGTON BANCSHARES INCORPORATED
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
___________________________________________
Maryland 0-2525 31-0724920
- ---------------- --------------------- -----------------------
(STATE OR OTHER (COMMISSION FILE NO.) (IRS EMPLOYER
JURISDICTION OF IDENTIFICATION NUMBER)
INCORPORATION OR
ORGANIZATION)
__________________________________________
Huntington Center
41 South High Street
Columbus, Ohio 43287
(614) 480-8300
(ADDRESS, INCLUDING ZIP CODE, AND TELEPHONE NUMBER
INCLUDING AREA CODE OF REGISTRANT'S
PRINCIPAL EXECUTIVE OFFICES)
__________________________________________
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ITEM 5. OTHER EVENTS.
On October 11, 1995, Huntington Bancshares Incorporated issued a news
release announcing its earnings for the third quarter ended September 30, 1995.
The information contained in the news release, which is attached as an exhibit
to this report, is incorporated herein by reference.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits.
Exhibit 99 -- News release of Huntington Bancshares
Incorporated, dated October 11, 1995.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
HUNTINGTON BANCSHARES INCORPORATED
Date: October 12, 1995 By: /s/ John D. Van Fleet
---------------------------------
John D. Van Fleet
Senior Vice President and
Corporate Controller
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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
-More-
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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.
-More-
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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)
<TABLE>
<CAPTION>
CONSOLIDATED RESULTS Three Months Ended Nine Months Ended
OF OPERATIONS September 30, Change September 30, Change
- ------------------------------ ------------------------------------ -------------------------------------
1995 1994 % 1995 1994 %
-------- -------- ------- --------- -------- ------
<S> <C> <C> <C> <C> <C> <C>
Interest Income $377,859 $301,724 25.2 % $1,080,459 $900,846 19.9 %
Interest Expense 191,281 118,173 61.9 537,782 322,046 67.0
-------- -------- --------- --------
Net Interest Income 186,578 183,551 1.6 542,677 578,800 (6.2)
Provision for Loan Losses 7,187 1,113 545.7 16,582 12,796 29.6
Non-Interest Income 61,204 53,793 13.8 180,029 171,444 5.0
Non-Interest Expense 138,850 151,356 (8.3) 426,957 449,990 (5.1)
Provision for Income Taxes 35,808 28,973 23.6 100,207 97,361 2.9
-------- -------- --------- --------
Net Income $65,937 $55,902 18.0 % $178,960 $190,097 (5.9)%
======== ======== ========= ========
PER COMMON SHARE AMOUNTS (1)
- ------------------------------
Net Income $0.48 $0.41 17.1 % $1.29 $1.40 (7.9)%
Cash Dividends Declared $0.20 $0.19 5.3 % $0.58 $0.49 18.4 %
Shareholders' Equity
(period end) $11.02 $10.32 6.8 % $11.02 $10.32 6.8 %
Average Shares
Outstanding (000's) 137,183 136,108 139,113 136,258
KEY RATIOS
- ----------
Return On:
Average Total Assets 1.34 % 1.35 % 1.27 % 1.53 %
Average Shareholders' Equity 17.03 % 15.77 % 15.75 % 18.14 %
Efficiency Ratio 56.74 % 63.44 % 59.63 % 60.18 %
Net Interest Margin 4.18 % 4.89 % 4.21 % 5.11 %
Average Equity/Average Assets 7.87 % 8.54 % 8.10 % 8.42 %
Tier I Risk-Based Capital Ratio
(period end) 8.46 % 9.90 % 8.46 % 9.90 %
Total Risk-Based Capital Ratio
(period end) 12.17 % 14.06 % 12.17 % 14.06 %
Tier I Leverage Ratio
(period end) 6.96 % 8.15 % 6.96 % 8.15 %
</TABLE>
<TABLE>
<CAPTION>
CONSOLIDATED STATEMENT
OF CONDITION DATA At September 30, Change
- ------------------------------ ------------------------------------------------------
1995 1994 %
------------ ----------- --------
<S> <C> <C> <C>
Total Loans $ 13,457,831 $ 11,871,412 13.4 %
Total Deposits $ 12,544,500 $ 11,602,246 8.1
Total Assets $ 20,173,130 $ 16,989,918 18.7
Shareholders' Equity $ 1,482,799 $ 1,401,821 5.8
ASSET QUALITY
- -------------
Non-performing loans $ 46,310 $ 53,860
Total non-performing assets $ 69,978 $ 105,418
Allowance for loan losses/total loans 1.48 % 1.73 %
Allowance for loan losses/non-performing loans 428.79 % 382.41 %
Allowance for loan losses and other real
estate/non-performing assets 263.26 % 181.70 %
<FN>
(1) Per common share amounts have been adjusted for the five percent stock
dividend distributed July 31, 1995.
</TABLE>
