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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: JULY 12, 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 July 12, 1995, Huntington Bancshares Incorporated issued a news
release announcing its earnings for the second quarter ended June 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
July 12, 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: July 17, 1995 By: /s/ John D. Van Fleet
------------------------------------
John D. Van Fleet
Senior Vice President and
Corporate Controller
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NEWS RELEASE [HUNTINGTON BANKS LOGO]
FOR IMMEDIATE RELEASE FOR FURTHER INFORMATION, CONTACT:
SUBMITTED: JULY 12, 1995 JACQUELINE THURSTON (614) 480-3878
HUNTINGTON BANCSHARES REPORTS EARNINGS
FOR SECOND QUARTER AND FIRST SIX MONTHS OF 1995
COLUMBUS, Ohio -- Huntington Bancshares Incorporated (NASDAQ: HBAN)
today reported net income of $58.2 million for the second quarter of 1995,
compared with $67.5 million for the same period one year ago. For the first
half of 1995, net income was $113.0 million, versus $134.2 million in the
first six months of 1994. The improving trend over the first quarter should
continue for the balance of the year. Both return on average assets (ROA) and
return on average equity (ROE) continued to be strong against industry
standards. ROA for the second quarter and first half of 1995 were 1.25% and
1.24%, respectively. ROE for the most recent quarter and first six months of
1995 were both 15.08%.
Huntington's common stock price currently reflects a previously
announced 5% stock dividend which will be distributed July 31, 1995. Adjusted
for this stock dividend, earnings per share were $.42 in the most recent three
months and $.81 for the first half of the year, compared with $.49 and $.98 for
the corresponding periods last year. Results for the current year include the
effects of the May 1995 acquisitions of Security National Corporation and
Reliance Bank of Florida. Prior year amounts have not been restated for these
transactions.
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"Although the company's earnings are less than what was reported a year
ago, we must remember that the first half of 1994 was an exceptionally good
period for the Huntington and the banking industry in general. We are pleased
with the solid loan growth and the progress made in reducing non-interest
expenses, which enabled the company to achieve strong earnings and performance
ratios, as well as our exceptional credit quality and capital position," stated
Frank Wobst, chairman and chief executive officer of Huntington Bancshares
Incorporated.
Huntington continued to experience solid loan growth in the second
quarter -- average loans increased 14.2% from the same period in 1994. This
increase was broad-based with commercial loans up 14.5%, consumer loans up
13.2%, and lease financing up 29.3% from the second quarter one year ago.
Net interest income during the recent quarter was $179.9 million. As
expected, this amount was down from one year ago due to significantly reduced
spreads but up $3.7 million from the first quarter of 1995. The net interest
margin in the second quarter was 4.21%, only 5 basis points less than the
previous quarter. Huntington expects that the margin will continue to decline
modestly primarily due to the large purchase of additional investments. In
addition, there will be continued competitive pressure on loan pricing and
deposit mix.
Non-interest income, excluding securities transactions, for the second
quarter and first half of 1995 was $53.7 million and $112.7 million, compared
with $58.8 million and $115.7 million for the correspondiong periods one year
ago. Increased service charges on deposits, credit card fees, and trust
revenues were more than offset by declines in mortgage banking income of
-More-
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$7.5 million for the quarter and $13.9 million for the six months of 1995.
Despite the year to year decline in mortgage banking income, restructuring and
other initiatives have stabilized this operation and Huntington Mortgage
Company is now operating profitably.
Non-interest expense in the second quarter of 1995 was $142.6 million
representing a 3.1% drop from the same three months in 1994. This represents
the third consecutive quarter that non-interest expense has been reduced. A
similar decrease of 3.4% occurred from the first half of 1994 to the
corresponding period this year. These decreases were achieved despite the
completion of two 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
$55.0 million, or .42% of total loans, at June 30, 1995, from $66.8 million or
.57% of total loans at the same time last year. Other real estate also
declined over the past twelve months, from $59.2 million to $24.0 million.
Non-performing assets as a percent of loans and other real estate totaled .60%
at the end of the most recent quarter, down significantly from 1.08% in the
same period in 1994. Net charge-offs, as a percent of average total loans,
were only .23% and .21%, respectively, during the second quarter and first six
months of 1995.
Huntington's allowance for loan losses totaled $198.3 million at June
30, 1995, or 1.51% of total loans. The allowance for loan losses represented
361% of non-performing loans and, when combined with the allowance for other
real estate, was 234% of total non-performing assets.
-More-
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The company's capital position continues to be strong. Average equity
to average assets was 8.28% for the second quarter and 8.22% for the first half
of 1995. The company's Tier I and total risk-based capital ratios were 9.30%
and 13.11%, respectively, and its Tier I leverage ratio was 7.72% at June 30,
1995. Huntington's capital ratios exceed the regulatory requirements to be
considered a "well-capitalized" bank holding company.
Huntington Bancshares is a $19.4 billion regional bank holding company
headquartered in Columbus, Ohio. The company's banking subsidiaries operate
332 offices in Ohio, Florida, Illinois, Indiana, Kentucky, Michigan,
Pennsylvania and West Virginia. Huntington's mortgage, trust, investment
banking, and automobile finance subsidiaries manage 70 offices in the eight
states mentioned as well as Georgia, Maryland, New Jersey, North Carolina, and
Virginia.
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<TABLE>
HUNTINGTON BANCSHARES INCORPORATED
COMPARATIVE SUMMARY (CONSOLIDATED)
(in thousands of dollars, except per share amounts)
<CAPTION>
CONSOLIDATED RESULTS THREE MONTHS ENDED SIX MONTHS ENDED
OF OPERATIONS JUNE 30, CHANGE JUNE 30, CHANGE
- -------------------------------- ---------------------------------- ---------------------------------
1995 1994 % 1995 1994 %
--------- --------- -------- --------- --------- -------
<S> <C> <C> <C> <C> <C> <C>
Interest Income $360,203 $297,485 21.1 % $702,600 $599,122 17.3 %
Interest Expense 180,313 105,403 71.1 346,501 203,873 70.0
--------- --------- -------- --------- --------- -------
Net Interest Income 179,890 192,082 (6.3) 356,099 395,249 (9.9)
Provision for Loan Losses 4,787 3,219 48.7 9,395 11,683 (19.6)
Non-Interest Income 60,043 58,984 1.8 119,143 117,651 1.3
Non-Interest Expense 142,571 147,195 (3.1) 288,425 298,634 (3.4)
Provision for Income Taxes 34,414 33,199 3.7 64,399 68,388 (5.8)
--------- --------- -------- --------- --------- -------
NET INCOME $58,161 $67,453 (13.8)% $113,023 $134,195 (15.8)%
========= ========= ======== ========= ========= =======
PER COMMON SHARE AMOUNTS (1)
- ----------------------------
Net Income
Pre-stock dividend $0.44 $0.52 $0.85 $1.03
Post-stock dividend $0.42 $0.49 (14.3) % $0.81 $0.98 (17.3) %
Cash Dividends Declared
Pre-stock dividend $0.20 $0.16 $0.40 $0.32
Post-stock dividend $0.19 $0.15 26.7 % $0.38 $0.30 26.7 %
Shareholders' Equity
(period end)
Pre-stock dividend $11.84 $10.72 $11.84 $10.72
Post-stock dividend $11.27 $10.21 10.4 % $11.27 $10.21 10.4 %
Average Shares
Outstanding (000's)
Pre-stock dividend 133,330 129,943 133,423 129,892
Post-stock dividend 139,997 136,440 140,094 136,386
KEY RATIOS
- ----------
Return On:
Average Total Assets 1.25 % 1.64 % 1.24 % 1.62 %
Average Shareholders' Equity 15.08 % 19.43 % 15.08 % 19.35 %
Efficiency Ratio 60.23 % 59.05 % 61.17 % 58.67 %
Net Interest Margin 4.21 % 5.13 % 4.24 % 5.22 %
Average Equity/Average Assets 8.28 % 8.43 % 8.22 % 8.36 %
Tier I Risk-Based Capital Ratio
(period end) 9.30 % 9.95 % 9.30 % 9.95 %
Total Risk-Based Capital Ratio
(period end) 13.11 % 14.17 % 13.11 % 14.17 %
Tier I Leverage Ratio
(period end) 7.72 % 7.98 % 7.72 % 7.98 %
</TABLE>
<TABLE>
<CAPTION>
CONSOLIDATED STATEMENT
OF CONDITION DATA AT JUNE 30, CHANGE
- ------------------------------------------- --------------------------------------------------
1995 1994 %
----------- ---------- ---------
<S> <C> <C> <C>
Total Loans $ 13,137,593 $11,634,695 12.9 %
Total Deposits $ 12,518,517 $11,569,249 8.2
Total Assets $ 19,370,768 $16,445,041 17.8
Shareholders' Equity $ 1,572,043 $ 1,389,467 13.1
ASSET QUALITY
- -------------
Non-performing loans $ 54,978 $ 66,752
Total non-performing assets $ 79,007 $ 125,909
Allowance for loan losses/total loans 1.51 % 1.83 %
Allowance for loan losses/non-performing loans 360.62 % 318.31 %
Allowance for loan losses and other real
estate/non-performing assets 234.30 % 160.22 %
<FN>
(1) Post-stock dividend amounts have been adjusted for the five percent stock dividend payable in July 1995.
NOTE: Results for the current year include the effects of the May 1995 acquisitions of Security National Corporation and Reliance
Bank of Florida. Prior period amounts have not been restated for these transactions.
</TABLE>
