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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: APRIL 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 April 14, 1999, Huntington Bancshares Incorporated ("Huntington")
issued a news release announcing its earnings for the first quarter and three
months ended March 31, 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
April 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: April 20, 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 April 14, 1999.
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* Filed with this report.
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NEWS RELEASE [HUNTINGTON BANKS LOGO]
FOR IMMEDIATE RELEASE
SUBMITTED: APRIL 14, 1999
FOR FURTHER INFORMATION, CONTACT:
MEDIA ANALYSTS
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HILLARY JEFFERS (614) 480-5413 LAURIE COUNSEL (614) 480-3878
HUNTINGTON BANCSHARES REPORTS
RECORD FIRST QUARTER EARNINGS
COLUMBUS, Ohio -- Huntington Bancshares Incorporated (NASDAQ: HBAN;
www.huntington.com) today reported record first quarter earnings of $96.6
million, or $.46 per common share--diluted, compared with $89.5 million and $.42
a year ago. This represents an increase in earnings per share of 9.5%. For the
recent quarter, the return on equity (ROE) was 18.47% and the return on assets
(ROA) was 1.38% versus 17.73% and 1.38%, respectively, in the year-ago period.
On a cash basis, earnings per share increased by 14% to $.49, with a
corresponding ROE of 29.58% and ROA of 1.52%.
"Our financial performance in the first quarter is indicative of solid
earnings momentum, driven by strong loan growth, high asset quality, and
significant improvements in efficiency. In fact, the efficiency ratio over the
recent three months is at its lowest level this decade," said Frank Wobst,
chairman and chief executive officer. "We are quite pleased with our progress
toward achieving the aggressive earnings targets we set for ourselves in 1999
and are firmly committed to the corporate restructuring plan announced last
year."
Net interest income for the first quarter was $259.5 million, up $4.7
million from the year-ago quarter. Net interest income was positively impacted
by an increase in earning assets as well as a shift in asset mix toward loans
versus lower-yielding investment securities. The net interest margin for the
quarter was 4.18%, compared with 4.30% in the first three months of 1998.
Non-interest income (excluding securities gains) experienced broad-based
growth versus the same period last year, increasing 16.5% to $107.6 million.
Total service charges on deposit accounts were up 21.3% from last year, impacted
significantly by increased volume in new business banking checking accounts as
well as expansion in Florida. Mortgage banking activity
VISIT THE HUNTINGTON'S WEB SYE AT www.huntington.com
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continued to be strong, with income and originations up 12.7% and 8%,
respectively, from the year-ago quarter. Brokerage and insurance income grew
39.3% year over year, largely due to higher sales of a proprietary annuity
product. Moreover, a new property and casualty product related to automobile
leasing also contributed to the increase. Competitive fee pricing related to the
company's alternative delivery systems helped drive the 40% increase in
electronic banking fees.
Non-interest expense for the recent three months was $202.1 million, up
only 2.9% compared with first quarter 1998, despite significant growth over this
period, particularly in Florida. Adjusted for the acquired offices in Florida,
expenses were down 5.3% versus last year. The favorable expense trend is
directly attributable to cost containment efforts that began in 1998, evidenced
by the $6.8 million decrease in total expenses from fourth quarter 1998. The
corporate-wide purchasing initiative helped drive a reduction in costs for
outside services, telecommunications, and printing and supplies. Salaries and
commissions dropped nearly 3% from the 1998 fourth quarter, as the company is
now more than two-thirds of the way toward achieving its target of a 10%
reduction of workforce positions. The efficiency ratio of 52.16% improved for
the third consecutive quarter.
In order to maximize the profitability of its banking network, The
Huntington previously announced it would close or sell 39 banking offices, while
opening new offices in higher-growth areas. Of this total, 19 were closed in the
first quarter, with most of the remainder to be closed or sold by mid-year 1999.
The Huntington opened 6 new offices - five in Florida and one in Ohio - with 20
more openings planned during 1999.
Loan volumes continued their momentum. Commercial lending showed
continued strength, while consumer growth was driven largely by vehicle lease
financing. On an annualized basis, average total loans increased 7.3% from the
prior quarter, excluding continued softness in residential real estate portfolio
lending.
Credit quality improved in the first three months of the year.
Nonperforming assets dropped to $94.7 million, or 0.48% of total loans and other
real estate, the lowest level since the second quarter of 1997. Coverage ratios
were 379% of nonperforming loans and 305% of nonperforming assets. Net
charge-offs represented .52% of total loans, down slightly from the fourth
quarter of 1998. The allowance for loan losses as a percent of total loans was
1.48%.
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Huntington's average equity to average assets was 7.46% 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 7.20% and 10.70%,
respectively, at March 31, 1999.
Huntington Bancshares is a regional bank holding company headquartered
in Columbus, Ohio with assets of $29 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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<TABLE>
HUNTINGTON BANCSHARES INCORPORATED
CONSOLIDATED COMPARATIVE SUMMARY
(in thousands, except per share amounts)
<CAPTION>
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CONSOLIDATED RESULTS OF OPERATIONS
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THREE MONTHS ENDED MARCH 31,
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CHANGE
1999 1998 %
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<S> <C> <C> <C>
Interest Income ............................ $495,692 $502,480 (1.4)%
Interest Expense ........................... 236,171 247,632 (4.6)
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Net Interest Income ........................ 259,521 254,848 1.8
Provision for Loan Losses .................. 25,305 22,181 14.1
Securities Gains ........................... 2,310 3,089 (25.2)
Non-Interest Income ........................ 107,562 92,330 16.5
Non-Interest Expense ....................... 202,106 196,442 2.9
Provision for Income Taxes ................. 45,410 42,158 7.7
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NET INCOME ................................. $ 96,572 $ 89,486 7.9%
======== ========
PER COMMON SHARE AMOUNTS (1)
Net Income - Basic ....................... $ 0.46 $ 0.42 9.5%
Net Income - Diluted ..................... $ 0.46 $ 0.42 9.5
Net Income - Diluted--Cash Basis ......... $ 0.49 $ 0.43 14.0
Cash Dividends Declared .................... $ 0.20 $ 0.18 11.1
AVERAGE COMMON SHARES OUTSTANDING (000S) (1)
Basic ................................... 210,417 211,377 (0.5)%
Diluted ................................. 212,187 213,809 (0.8)%
<CAPTION>
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CONSOLIDATED STATEMENTS OF CONDITION
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THREE MONTHS ENDED MARCH 31,
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CHANGE
1999 1998 %
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<S> <C> <C> <C>
Average Total Loans ........................ $19,562,963 $17,640,875 10.9%
Average Total Deposits ..................... 19,131,352 17,482,212 9.4
Average Total Assets ....................... 28,422,337 26,330,300 8.0
Average Shareholders' Equity ............... 2,120,754 2,046,561 3.6
Shareholders' Equity (period end)........... $ 10.17 $ 9.80 3.8
<CAPTION>
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KEY OPERATING RATIOS
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THREE MONTHS ENDED MARCH 31,
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CHANGE
1999 1998 %
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<S> <C> <C> <C>
Return On:
Average Total Assets ..................... 1.38% 1.38%
Average Shareholders' Equity.............. 18.47% 17.73%
Efficiency Ratio ........................... 52.16% 56.32%
Net Interest Margin ........................ 4.18% 4.30%
Average Equity/Average Assets .............. 7.46% 7.77%
<CAPTION>
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REGULATORY RATIOS (PERIOD END) (2)
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THREE MONTHS ENDED
MARCH 31,
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1999 1998
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<S> <C> <C>
Tier I Risk-Based Capital .................. 7.20% 8.91%
Total Risk-Based Capital ................... 10.70% 11.57%
Tier I Leverage ............................ 6.32% 7.72%
<CAPTION>
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ASSET QUALITY (PERIOD END)
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THREE MONTHS ENDED
MARCH 31,
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1999 1998
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<S> <C> <C>
Non-performing loans .............................. $76,880 $83,061
Total non-performing assets ....................... $94,733 $95,066
Allowance for loan losses/total loans ............. 1.48% 1.46%
Allowance for loan losses/non-performing loans .... 378.60% 310.93%
Allowance for loan losses and other real
estate/non-performing assets ................. 305.33% 270.07%
</TABLE>
(1) Adjusted for stock splits and stock dividends, as applicable.
(2) Estimated.
