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EXHIBIT 99.1
FOR IMMEDIATE RELEASE
SUBMITTED: JANUARY 18, 2001
FOR FURTHER INFORMATION, CONTACT:
MEDIA ANALYSTS
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JERI GRIER (614) 480-5413 LAURIE COUNSEL (614) 480-3878
LAURA BOWERS (614) 480-4433 CHERI GRAY (614) 480-3803
HUNTINGTON BANCSHARES ANNOUNCES 2000
FOURTH QUARTER AND FULL YEAR EARNINGS
COLUMBUS, Ohio - Huntington Bancshares Incorporated (NASDAQ: HBAN;
www.huntington.com) today reported fourth quarter earnings of $76.2 million, or
$.30 per share, compared with earnings of $107.3 million, or $.42 per share a
year ago (excluding the fourth quarter 1999 gain from the sale of its credit
card portfolio and special charges). Return on average assets (ROA) was 1.06%
and return on average equity (ROE) was 12.89% for the quarter versus 1.47% and
20.20% on an operating basis in the year-ago quarter.
Net income for the year ended December 31, 2000, totaled $328.4
million, or $1.32 per share, compared with $422.1 million, or $1.65 per share,
in 1999. Excluding the impact of the third quarter $32.5 million after-tax
leasing charge and the two non-recurring items in the prior year, operating
earnings were $360.9 million, or $1.45 per share, in 2000 and $414.4 million, or
$1.62 per share, in 1999. On this basis, ROA and ROE were 1.26% and 15.84%
versus 1.44% and 19.31% in the prior year.
"The past year was a difficult one for Huntington, particularly
following the record earnings in 1999," said Frank Wobst, chairman and chief
executive officer of Huntington Bancshares Incorporated. "The company's net
interest margin was under significant pressure from rising market interest
rates, a flat yield curve, and a fiercely competitive market for customer
deposits. The higher interest rate environment also contributed to a softening
in our mortgage banking business."
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For comparative purposes versus prior periods, all loan growth
information in the following paragraph has been adjusted for the impact of the
Empire Bank acquisition as well as securitization activities, asset sales, and
the vehicle lease residual write-downs.
Total managed loans increased at an annualized rate of 11% on a linked
quarter basis and 9% versus the fourth quarter of 1999. Growth in the consumer
portfolio was particularly strong at 16% from the third quarter and 14% compared
with the same period last year, with the largest increases in home equity
lending and automobile financing. Commercial loans were up 6% on a linked
quarter annualized basis and up 3% from a year ago.
Net interest income totaled $233.1 million for the quarter, down
slightly from $235.9 million in the third quarter, reflecting a decline in the
net interest margin from 3.74% to 3.70% and flat earning assets. Net interest
income for the year was $942.4 million, down from $1,041.8 million in 1999,
reflecting a decline in the net interest margin from 4.11% to 3.73%. The decline
was caused by a 67 basis point increase in core deposit costs versus a 34 basis
point increase in earning asset yields. Earning assets were flat in 2000,
reflecting $1.4 billion of loan securitization activity during the year.
Non-interest income for the quarter was $130.5 million, up from $121.7
million in the preceding three months. Excluding securities gains of $.8 million
in the fourth quarter and $11.4 million in the third quarter, non-interest
income increased $19.4 million, reflecting income from securitizations and
broad-based increases from other areas.
Non-interest expense totaled $223.9 million in the fourth quarter, an
increase of $10.3 million from the previous three months, excluding the
aforementioned auto leasing charge. There were three major components of the
increase: a $5.4 million increase in operational losses, a $2.0 million seasonal
increase in marketing expenses, and a $2.1 million year-end increase in
professional services costs. Increases in other operating expense categories
were offset by reduced incentive compensation expenses.
Regarding credit quality, reported net charge-offs, as a percent of
average loans, totaled .50% in the recent three months, versus .46% in the
previous quarter. For the full year, net charge-offs were .40%, unchanged from
1999. Non-performing assets increased $16.9 million from the third quarter to
$105.4 million, representing .51% of total loans and other real estate at
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year-end. At year-end, the allowance for loan losses was 1.45% of total loans,
unchanged from the prior quarter and year.
Capital ratios remain healthy. The equity to assets ratio increased
from 7.52% at the end of 1999 to 8.27% at the end of 2000. This improvement was
driven by a more efficient balance sheet, reflecting loan securitizations and
sales of lower-yielding investment securities during the year. Huntington's
capital ratios continue to exceed regulatory requirements for a
"well-capitalized" institution.
A conference call to discuss fourth quarter and full year results will
be held today at 2:00 p.m. Eastern and will be available via a live Internet
Webcast at www.streetfusion.com. The slides for the conference call, along with
management's comments, will be filed with the Securities and Exchange Commission
on Form 8-K.
A version of this press release containing supplemental tables is
available via PR Newswire's Fax-on-Demand system. Please call (800) 753-0352 and
enter extension 756. The financial tables are also included in the 8-K mentioned
above as well as at www.huntington-ir.com. For faxed copies of all other news
releases, please call (800) 758-5804 extension 423276.
Huntington Bancshares Incorporated is a $29 billion regional bank
holding company headquartered in Columbus, Ohio. Through its affiliated
companies, Huntington has more than 135 years of serving the financial needs of
its customers. Huntington provides innovative products and services through over
600 offices in Florida, Indiana, Kentucky, Maryland, Michigan, New Jersey, Ohio
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 online at
www.huntington.com; through its technologically advanced, 24-hour telephone
bank, and through its network of more than 1,400 ATMs. 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
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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. All forward-looking statements included in this news release are
based on information available at the time of the release. Huntington assumes no
obligation to update any forward-looking statement.
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<TABLE>
HUNTINGTON BANCSHARES INCORPORATED
CONSOLIDATED COMPARATIVE SUMMARY
(in thousands, except per share amounts)
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CONSOLIDATED RESULTS OF OPERATIONS
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<CAPTION>
THREE MONTHS ENDED TWELVE MONTHS ENDED
DECEMBER 31, DECEMBER 31,
--------------------- CHANGE ------------------------- CHANGE
2000 1999 % 2000 1999 %
-------- -------- ------ ---------- ---------- ------
<S> <C> <C> <C> <C> <C> <C>
Interest Income $537,661 $515,516 4.3% $2,108,505 $2,026,002 4.1%
Interest Expense 304,595 262,854 15.9 1,166,073 984,240 18.5
-------- -------- ---------- ----------
Net Interest Income 233,066 252,662 (7.8) 942,432 1,041,762 (9.5)
Provision for Loan Losses 32,548 20,040 62.4 90,479 88,447 2.3
Non-Interest Income 129,704 114,338 13.4 456,458 452,073 1.0
Securities Gains 845 7,905 N.M. 37,101 12,972 N.M.
Gains on Sales of Credit Cards -- 108,530 N.M. -- 108,530 N.M.
Non-Interest Expense 223,850 204,895 9.3 835,617 815,328 2.5
Special Charges -- 96,791 N.M. 50,000 96,791 (48.3)
Provision for Income Taxes 30,995 46,769 (33.7) 131,449 192,697 (31.8)
-------- -------- ---------- ----------
NET INCOME $ 76,222 $114,940 (33.7)% $ 328,446 $ 422,074 (22.2)%
======== ======== ===== ========== ==========
OPERATING EARNINGS (1)
----------------------
Net Income $ 76,222 $107,310 (29.0)% $ 360,946 $ 414,444 (12.9)%
======== ======== ===== ========== ==========
Net Income per Common Share (2)
Diluted $ 0.30 $ 0.42 (28.6)% $ 1.45 $ 1.62 (10.5)%
Diluted--Cash Basis (3) $ 0.34 $ 0.45 (24.4)% $ 1.57 $ 1.74 (9.8)%
Return On:
Average Total Assets 1.06% 1.47% 1.26% 1.44%
Average Shareholders' Equity 12.89% 20.20% 15.84% 19.31%
PER COMMON SHARE AMOUNTS - REPORTED (2)
---------------------------------------
Net Income per Common Share--Diluted $ 0.30 $ 0.45 (33.3)% $ 1.32 $ 1.65 (20.3)%
Cash Dividends Declared $ 0.20 $ 0.18 11.1% $ 0.76 $ 0.68 11.8%
Shareholders' Equity (period end) $ 9.43 $ 8.67 8.8% $ 9.43 $ 8.67 8.8%
AVERAGE COMMON SHARES - DILUTED (2) 251,401 254,183 (1.1)% 249,570 255,647 (2.4)%
</TABLE>
<TABLE>
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KEY PERFORMANCE RATIOS
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<CAPTION>
THREE MONTHS ENDED TWELVE MONTHS ENDED
DECEMBER 31, DECEMBER 31,
--------------------- -------------------------
2000 1999 2000 1999
-------- -------- ---------- ----------
<S> <C> <C> <C> <C>
Return On:
Average Total Assets 1.06% 1.57% 1.14% 1.47%
Average Shareholders' Equity 12.89% 21.64% 14.41% 19.66%
Efficiency Ratio 58.48% 52.97% 56.19% 51.76%
Net Interest Margin 3.70% 3.94% 3.73% 4.11%
Average Equity/Average Assets 8.21% 7.27% 7.94% 7.47%
</TABLE>
<TABLE>
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CONSOLIDATED STATEMENT OF CONDITION DATA
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<CAPTION>
THREE MONTHS ENDED TWELVE MONTHS ENDED
DECEMBER 31, DECEMBER 31,
------------------------- CHANGE ------------------------- CHANGE
2000 1999 % 2000 1999 %
-------- -------- ------ ---------- ---------- ------
<S> <C> <C> <C> <C> <C> <C>
Average Total Loans $20,489,983 $20,513,235 (0.1)% $20,668,581 $20,088,542 2.9%
Average Total Deposits $19,511,274 $19,422,791 0.5 $19,689,504 $19,207,347 2.5
Average Total Assets $28,654,483 $28,997,211 (1.2) $28,720,508 $28,739,450 (0.1)
Average Shareholders' Equity $ 2,352,612 $ 2,107,526 11.6 $ 2,279,230 $ 2,146,735 6.2
</TABLE>
<TABLE>
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REGULATORY CAPITAL RATIOS (4) AND ASSET QUALITY
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<CAPTION>
AT DECEMBER 31, AT DECEMBER 31,
-------------------- --------------------
2000 1999 2000 1999
-------- ------- -------- -------
<S> <C> <C> <C> <C> <C>
Tier I Risk-Based Capital 7.20% 7.52% Non-performing loans (NPLs) $93,984 $83,070
Total non-performing assets (NPAs) $105,397 $98,241
Total Risk-Based Capital 10.46% 10.72% Allowance for loan losses/total loans 1.45% 1.45%
Allowance for loan losses/NPLs 316.95% 360.31%
Tier I Leverage 6.93% 6.72% Allowance for loan losses and other
real estate/NPAs 279.16% 299.85%
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</TABLE>
(1) Reported results, as adjusted, exclude the impact of gains from sale of
credit card portfolios and special charges, net of related taxes.
(2) Adjusted for stock splits and stock dividends, as applicable.
(3) Tangible or "Cash Basis" net income excludes amortization of goodwill and
other intangibles, net of income taxes.
(4) Estimated.
N.M. - Not Meaningful
