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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 or 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
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DATE OF REPORT: JULY 14, 1999
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HUNTINGTON BANCSHARES INCORPORATED
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
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Maryland 0-2525 31-0724920
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(STATE OR OTHER (COMMISSION FILE NO.) (IRS EMPLOYER
JURISDICTION OF IDENTIFICATION NUMBER)
INCORPORATION OR
ORGANIZATION)
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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 14, 1999, Huntington Bancshares Incorporated ("Huntington")
issued a news release announcing its earnings for the second quarter and six
months ended June 30, 1999. The information contained in the news release, which
is attached as an exhibit to this report, is incorporated herein by reference.
The information contained or incorporated by reference in this Current
Report on Form 8-K may contain 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; the risks of
Year 2000 disruption; and extended disruption of vital infrastructure.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits.
Exhibit 99 -- News release of Huntington Bancshares Incorporated, dated
July 14, 1999.
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 30, 1999 By: /s/ Judith D. Fisher
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Judith D. Fisher, Executive Vice
President, Treasurer and
Chief Financial Officer
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EXHIBIT INDEX
Exhibit No. Description Page
99 * News release of Huntington Bancshares
Incorporated issued on July 14, 1999.
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* Filed with this report.
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Exhibit 99
NEWS RELEASE [Huntington logo]
FOR IMMEDIATE RELEASE
SUBMITTED: JULY 14, 1999
FOR FURTHER INFORMATION, CONTACT:
MEDIA ANALYSTS
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KIP EDWARDSON (614) 480-4433 LAURIE COUNSEL (614) 480-3878
CHERI GRAY (614) 480-3803
HUNTINGTON BANCSHARES REPORTS 16% INCREASE IN
EARNINGS PER SHARE FOR SECOND QUARTER
COLUMBUS, Ohio -- Huntington Bancshares Incorporated (NASDAQ: HBAN;
www.huntington.com) today reported record second quarter earnings of $105.0
million, or $.50 per common share--diluted, representing a 16.3% increase in
earnings per share over the same period last year. These results compare with
net income and earnings per share of $92.3 million and $.43 a year ago. For the
recent three months, Huntington's return on equity (ROE) was 19.48% and its
return on assets (ROA) was 1.47% versus 17.70% and 1.42%, respectively, in the
second quarter of 1998. On a cash basis, earnings per share grew 17.8% to $.53,
with a corresponding ROE of 30.61% and ROA of 1.61%.
"Our second quarter results demonstrate continued progress toward
achieving our 1999 earnings goal. We began the year with a strong commitment to
becoming a more efficient organization, and I am pleased to report that we are
delivering results, as evidenced by the sharp improvement in efficiency from
58.78% a year ago to 50.93% today," said Frank Wobst, chairman and chief
executive officer. "Other key performance ratios are also the highest they have
been in recent years. Importantly, we have been able to sustain solid loan
growth while maintaining the excellent credit quality for which Huntington has
long been known."
Net interest income for the second quarter was $26.1 million, up 5.5%
from the year-ago quarter. This improvement was primarily driven by loan growth
and was achieved despite a managed reduction in investment securities.
Non-interest income (excluding gains from securities and loan sales)
increased 20.1% attributable to overall growth in fee-based activities.
Brokerage and insurance income was up nearly 50% from a year ago, due to an
expanded sales force of licensed investment
-more-
Visit the Huntington web site at www.huntington.com
<PAGE> 2
representatives as well as high demand for Huntington's proprietary annuity
product. Electronic banking revenue strengthened as a result of competitive fee
pricing and a growing on-line banking customer base. Over the past twelve
months, Web Bank users have increased from 35,000 to more than 70,000. Service
charges on deposit accounts were up 18.5% from last year, reflecting an
increase in fees generated by cash management products as well as expansion in
Florida.
Non-interest expense for the recent three months was $202.1 million,
down 2.2% compared with second quarter 1998, despite significant expansion in
the Florida market. Excluding the impact of last year's Florida acquisition,
non-interest expense declined 10% from the same period last year. Personnel
costs were down 7% as the company has substantially completed its planned
staffing reductions. The efficiency ratio improved for the fourth consecutive
quarter and is approaching the 50% level targeted by management for December
1999.
Loan growth continues to be strong, benefited by the favorable economic
climate in Huntington's key markets. On an annualized basis, average total loans
increased nearly 10% from the first three months of the year, excluding
residential real estate portfolio lending. Commercial lending, which is
predominantly to small- and middle-market companies, was up 10.4%. Consumer
lending also gained momentum in the quarter, increasing 8.7%, led by automobile
financing and the company's home equity product. In the second quarter,
Huntington entered the automobile financing market in Florida, where loan
production in just three months has already surpassed some of the company's more
mature markets.
Credit quality improved from the previous quarter. Net charge-offs
represented .38% of total loans, down 14 basis points from the previous quarter,
and reached their lowest level in three years. Nonperforming assets dropped to
$93.6 million, or .46% of total loans and other real estate. Coverage ratios
were 382% of nonperforming loans and 311% of nonperforming assets. The allowance
for loan losses as a percent of total loans was 1.46% at June 30, 1999.
Huntington's average equity to average assets was 7.52% in the recent
three month period. The company and its bank subsidiary continue to maintain
healthy capital positions, exceeding requirements for a "well-capitalized"
institution. Tier I and total risk based capital ratios were 7.29% and 10.65%,
respectively, at June 30, 1999.
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Huntington's Board of Directors declared a 10% stock dividend on May
19, 1999. The ex-dividend date of this distribution was July 12, 1999.
Accordingly, the share price of Huntington's common stock adjusted on that date.
However, the per share information included in the above paragraphs has not been
restated for this pending dividend, which will be paid July 30, 1999.
Huntington Bancshares is a regional bank holding company headquartered
in Columbus, Ohio with assets of $28 billion. Through its affiliated companies,
The Huntington has more than 133 years of serving the financial needs of its
customers.
The Huntington provides innovative products and services through its
more than 600 offices in Florida, Georgia, Indiana, Kentucky, Maryland,
Michigan, New Jersey, North Carolina, Ohio, South Carolina, 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. The Huntington also offers products and services through its
technologically-advanced, 24-hour telephone bank, a network of more than 1,300
ATMs and its Web Bank at www.huntington.com.
For faxed copies of current news releases, please call our
fax-on-demand service, Company News on Call, at (800) 758-5804 extension 423276.
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; the risks of
Year 2000 disruption; and extended disruption of vital infrastructure.
###
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HUNTINGTON BANCSHARES INCORPORATED
CONSOLIDATED COMPARATIVE SUMMARY
(in thousands, except per share amounts)
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CONSOLIDATED RESULTS OF OPERATIONS
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<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
----------------------- CHANGE ----------------------- CHANGE
1999 1998 % 1999 1998 %
-------- -------- ----- ------- -------- -------
<S> <C> <C> <C> <C> <C> <C>
Interest Income $498,500 $491,268 1.5 % $994,192 $993,748 -- %
Interest Expense 237,352 243,839 (2.7) 473,523 491,471 (3.7)
-------- -------- -------- --------
Net Interest Income 261,148 247,429 5.5 520,669 502,277 3.7
Provision for Loan Losses 21,026 24,595 (14.5) 46,331 46,776 (1.0)
Securities Gains 2,220 14,316 (84.5) 4,530 17,405 (74.0)
Non-Interest Income 115,056 105,340 9.2 222,618 197,670 12.6
Non-Interest Expense 202,138 206,678 (2.2) 404,244 403,120 0.3
Provision for Income Taxes 50,285 43,503 15.6 95,695 85,661 11.7
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NET INCOME $104,975 $ 92,309 13.7 % $201,547 $181,795 10.9 %
======== ======== ==== ======== ========
PER COMMON SHARE AMOUNTS (1)
Net Income per Common Share
Basic $0.50 $0.44 13.6 % $0.96 $0.86 11.6 %
Diluted $0.50 $0.43 16.3 % $0.95 $0.85 11.8 %
Diluted - Cash Basis $0.53 $0.45 17.8 % $1.02 $0.88 15.9 %
Cash Dividends Declared $0.20 $0.18 11.1 % $0.40 $0.36 11.1 %
Shareholders' Equity (period end) $10.23 $10.08 1.5 % $10.23 $10.08 1.5 %
AVERAGE COMMON SHARES (1)
Basic 209,978 211,600 (0.8) % 210,198 211,489 (0.6) %
Diluted 211,958 214,664 (1.3) % 212,071 214,237 (1.0) %
</TABLE>
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KEY OPERATING RATIOS
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<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
---------------------- ----------------------
1999 1998 1999 1998
-------- --------- ------- -------
<S> <C> <C> <C> <C>
Return On:
Average Total Assets 1.47 % 1.42 % 1.42 % 1.40 %
Average Shareholders' Equity 19.48 % 17.70 % 18.98 % 17.72 %
Efficiency Ratio 50.93 % 58.78 % 51.54 % 56.97 %
Net Interest Margin 4.14 % 4.23 % 4.16 % 4.27 %
Average Equity/Average Assets 7.52 % 8.02 % 7.49 % 7.90 %
</TABLE>
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CONSOLIDATED STATEMENT OF CONDITION DATA
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<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
------------------------------ CHANGE ----------------------------- CHANGE
1999 1998 % 1999 1998 %
----------- ----------- ------ ----------- ----------- -------
<S> <C> <C> <C> <C> <C> <C>
Average Total Loans $20,002,262 $17,843,277 12.1 % $19,783,826 $17,742,635 11.5 %
Average Total Deposits $19,072,878 $17,453,550 9.3 $19,101,954 $17,467,802 9.4
Average Total Assets $28,730,679 $26,071,768 10.2 $28,577,360 $26,200,320 9.1
Average Shareholders' Equity $ 2,161,275 $ 2,091,636 3.3 $ 2,141,126 $ 2,069,223 3.5
</TABLE>
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REGULATORY CAPITAL RATIOS (2)
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<TABLE>
<CAPTION>
AT
JUNE 30,
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1999 1998
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<S> <C> <C>
Tier I Risk-Based Capital 7.29 % 7.18 %
Total Risk-Based Capital 10.65 % 11.01 %
Tier I Leverage 6.45 % 6.72 %
</TABLE>
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ASSET QUALITY
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<TABLE>
<CAPTION>
AT
JUNE 30,
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1999 1998
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<S> <C> <C>
Non-performing loans $ 76,764 $ 80,137
Total non-performing assets $ 93,603 $ 101,653
Allowance for loan losses/total loans 1.46 % 1.50 %
Allowance for loan losses/non-performing loans 382.05 % 357.97 %
Allowance for loan losses and other real
estate/non-performing assets 311.32 % 280.64 %
</TABLE>
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(1) Adjusted for stock dividends and stock splits, as applicable, excluding the
ten percent stock dividend payable July 1999.
(2) Estimated.
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