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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 13, 2000
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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 13, 2000, Huntington Bancshares Incorporated ("Huntington")
issued a news release announcing its earnings for the first quarter and three
months ended March 31, 2000. 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 13, 2000.
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 21, 2000 By: /s/ Anne Creek
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Anne Creek, Executive Vice President and
Chief Financial Officer
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EXHIBIT INDEX
Exhibit No. Description
99 * News release of Huntington Bancshares
Incorporated issued on April 13, 2000.
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* Filed with this report.
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NEWS RELEASE [HUNTINGTON LOGO]
FOR IMMEDIATE RELEASE
SUBMITTED: APRIL 13, 2000
FOR FURTHER INFORMATION, CONTACT:
MEDIA ANALYSTS
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GAIL GESHWILM (614) 480-5413 LAURIE COUNSEL (614) 480-3878
LAURA BOWERS (614) 480-4433 CHERI GRAY (614) 480-3803
HUNTINGTON BANCSHARES REPORTS 12% INCREASE IN
EARNINGS PER SHARE AND RECORD BROKERAGE
INCOME FOR FIRST QUARTER 2000
COLUMBUS, Ohio - Huntington Bancshares Incorporated (NASDAQ: HBAN;
www.huntington.com) today reported first quarter 2000 net income of $104.2
million or $.46 per diluted common share, representing a 12% increase in diluted
earnings per share compared with $.41 reported in first quarter 1999. Return on
equity (ROE) and return on assets (ROA) during the first three months of 2000
were 18.99% and 1.45%, respectively, improvements over ROE of 18.47% and ROA of
1.38% during the comparable period a year ago. On a cash basis, earnings reached
$.49 per diluted share, up from $.45 in first quarter 1999, with a corresponding
ROE of 29.01% and ROA of 1.58%.
"This year is a time for Huntington to build on the foundation for
growth that was put in place in 1999," said Frank Wobst, chairman and chief
executive officer of Huntington Bancshares Incorporated. "These first quarter
results reflect the positive trends evident last year of strong loan growth and
asset quality, advances in fee income and continued expense control. We recently
announced strategic changes in our company designed to improve future revenue
growth in targeted business segments. These changes include a new sales process,
improved products, technology advances, and improved service levels focused on
attracting, retaining, and
(more)
VISIT THE HUNTINGTON'S WEB SITE AT WWW.HUNTINGTON.COM
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expanding customer relationships. While the results of these initiatives are not
yet fully reflected in our financial performance, we have already seen evidence
of their success in increased sales of targeted products and expect incremental
contributions to revenue growth as the year progresses."
Excluding the credit card portfolio that was sold in October 1999,
average total loans for the most recent quarter increased at an annualized rate
of 9% from the fourth quarter of 1999. Average consumer loans grew at an
annualized rate of 10%, led by automobile loans and leases and home equity loans
at 9% and 21%, respectively. Commercial loans also posted a 10% annualized gain.
Net interest income for the quarter was $240.7 million, down 4% from first
quarter 1999, adjusted for the credit card sale. The net interest margin for the
recent quarter was 3.78%. During first quarter 2000, Huntington completed
certain balance sheet restructuring transactions, including the sale of
approximately $330 million of lower-yielding securities and the securitization
of $500 million of automobile loans, designed to reduce Huntington's reliance on
wholesale funding.
Non-interest income grew 8% from the 1999 first quarter to $111.1
million, after adjusting for the impact of the credit card sale. Service charges
were $41.7 million, an increase of 16% from last year's first quarter.
Huntington's strategic investments in technology continue to benefit earnings as
electronic banking fees improved 23% during the first three months of 2000
compared with the same period a year ago. In addition, momentum in investment
product and insurance sales continued during first quarter 2000 as Huntington
achieved a record level of quarterly brokerage and insurance income of $15.3
million, up 32% from first quarter 1999. On the other hand, mortgage banking
income declined $7.4 million from the first quarter of 1999 because of a
decrease in refinance volume resulting from higher interest rates. Excluding
this decline, non-interest income grew 18% from the 1999 first quarter.
Huntington's financial performance continued to benefit from the
corporate-wide restructuring plan implemented in 1999 to improve operating
efficiencies. Operating expenses of $200.1 million in the first quarter
represent a decline from the fourth quarter 1999 and represent the lowest level
of operating expenses since the first quarter 1998. Huntington maintains its
commitment to continued cost containment as strategic focus shifts to revenue
growth during 2000.
(more)
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Huntington sustained strong credit quality levels during the first
three months of the year. Net charge-offs for the quarter were .35% of average
loans, down from .43% (excluding credit card) reported for the first quarter
1999. Coverage ratios at March 31, 2000 were 379% of non-performing loans and
316% of non-performing assets. The allowance for loan losses as a percent of end
of period total loans was 1.45%.
Huntington's average equity to average assets was 7.62% in the recent
quarter. Huntington and its bank subsidiary continued to maintain healthy
capital positions, exceeding requirements for a "well capitalized" institution.
Huntington's tier 1 and total risk-based capital ratios (estimated) were 7.22%
and 10.89%, respectively, at March 31, 2000.
Huntington Bancshares is a regional bank holding company headquartered
in Columbus, Ohio with assets of $29 billion and 134 years of serving the
financial needs of its customers.
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. Huntington
also offers products and services through its technologically advanced, 24-hour
telephone bank, a network of more than 1,400 ATMs and its Web Bank at
www.huntington.com.
A version of this press release that contains supplemental tables is
available via PR Newswire's Fax-on-Demand system. Please call (800) 753-0352 and
enter extension 756. For faxed copies of all other news releases, please call
(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; and extended
disruption of vital infrastructure.
###
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HUNTINGTON BANCSHARES INCORPORATED
CONSOLIDATED COMPARATIVE SUMMARY
(in thousands, except per share amounts)
<TABLE>
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Consolidated Results of Operations
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<CAPTION>
THREE MONTHS ENDED
MARCH 31,
--------------------- CHANGE
2000 1999 %
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<S> <C> <C> <C>
Interest Income $515,557 $495,692 4.0%
Interest Expense 274,866 236,171 16.4
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Net Interest Income 240,691 259,521 (7.3)
Provision for Loan Losses 15,701 25,305 (38.0)
Securities Gains and Securitization Losses, Net 14,555 2,310 N.M.
Non-Interest Income 111,139 107,562 3.3
Non-Interest Expense 200,106 202,106 (1.0)
Provision for Income Taxes 46,405 45,410 2.2
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Net Income $104,173 $ 96,572 7.9%
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Per Common Share Amounts (1)
Net Income per Common Share
Basic $ 0.46 $ 0.42 9.5%
Diluted $ 0.46 $ 0.41 12.2%
Diluted - Cash Basis (2) $ 0.49 $ 0.45 8.9%
Cash Dividends Declared $ 0.20 $ 0.18 11.1%
Shareholders' Equity (period end) $ 9.45 $ 9.25 2.2%
Average Common Shares (1)
Basic 225,431 231,459 (2.6)%
Diluted 226,490 233,406 (3.0)%
</TABLE>
<TABLE>
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Key Operating Ratios
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<CAPTION>
THREE MONTHS ENDED
MARCH 31,
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2000 1999
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<S> <C> <C>
Return On:
Average Total Assets 1.45% 1.38%
Average Shareholders' Equity 18.99% 18.47%
Efficiency Ratio 53.93% 52.16%
Net Interest Margin 3.78% 4.18%
Average Equity/Average Assets 7.62% 7.46%
</TABLE>
<TABLE>
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Consolidated Statement of Condition Data
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<CAPTION>
AVERAGE FOR THREE MONTHS
ENDED MARCH 31, AT MARCH 31,
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2000 1999 % 2000 1999 %
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<S> <C> <C> <C> <C> <C> <C>
Total Loans $20,797,762 $19,562,963 6.3% $20,531,039 $19,731,593 4.1%
Total Deposits 19,790,564 19,131,352 3.4 19,779,364 19,046,901 3.8
Total Assets 28,952,570 28,422,337 1.9 28,407,979 28,577,908 (0.6)
Long-term Debt 704,217 707,401 (0.5) 845,623 707,438 19.5
Shareholders' Equity 2,205,921 2,120,754 4.0 2,098,823 2,138,057 (1.8)
</TABLE>
<TABLE>
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Regulatory Capital Ratios (3) and Asset Quality
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<CAPTION>
AT AT
MARCH 31, MARCH 31,
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2000 1999 2000 1999
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<S> <C> <C> <C> <C> <C>
Tier I Risk-Based Capital 7.22% 7.20% Non-performing loans (NPLs) $78,307 $76,880
Total non-performing assets (NPAs) $92,211 $94,733
Total Risk-Based Capital 10.89% 10.70% Allowance for loan losses/total loans 1.45% 1.48%
Allowance for loan losses/NPLs 378.95% 378.60%
Tier I Leverage 6.45% 6.32% Allowance for loan losses and other
real estate/NPAs 316.30% 305.33%
</TABLE>
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(1) Adjusted for stock dividends and stock splits, as applicable.
(2) Tangible or "Cash Basis" net income excludes amortization of goodwill and
other intangibles, net of income taxes.
(3) Estimated.
N.M. - Not Meaningful
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