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Huntington Bancshares Incorporated (HBAN) is a regional bank headquartered in Columbus, Ohio. HBAN conducts business through over 600 branches in Ohio, Michigan, Indiana, Kentucky, Pennsylvania and West Virginia, and a network of over 1,400 ATMs. Net interest income contributed 70% of HBAN's adjusted net revenue in 2007, while non-interest sources such as service charges on deposits, mortgage banking, trust, and insurance contributed the balance.
HBAN reported a 3Q08 net income of $75.1 million or $0.17 per share. Excluding the market-related losses, securities impairments and deferred tax-valuation allowance benefit, core results came in at $0.27 per share.
Credit quality continued to worsen. Net charge-offs were 0.82% of average total loans and leases, up 18 bps sequentially and 35 bps year-over-year. Non-performing assets as a percentage of related assets increased by 11 bps sequentially to 2.52% at the end of 3Q08. Increase in charge-offs and increase in allowance for credit losses are expected going forward.
Huntington Bancshares Inc.'s loan composite remains heavily weighed to the mid-Ohio to eastern Michigan markets, which are under severe stress currently. Considering we are in the second third of a housing market correction, delinquencies will continue to rise undoubtedly, which should translate into substantially higher levels of losses throughout 2008 and potentially into 2009.
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