How did Huntington perform financially in 1995?

Net income was $244.5 million, or $1.78 per share, roughly flat with 1994. Return on average assets was 1.28% and return on average equity was 16.27%, both lower than the prior year's 1.45% and 17.29%.

Why did net interest income decline in 1995?

Net interest income fell to $724.6 million from $756.1 million because the net interest margin dropped to 4.15% from 4.96%. The filing attributes this to narrowed spreads, as funding costs increased more rapidly than yields on earning assets, and to a shift in deposit mix toward higher-cost certificates of deposit.

How strong is Huntington's asset quality and capital position?

Non-performing assets decreased to $77.0 million from $96.4 million, and the allowance for loan losses covered 353.76% of non-performing loans. The Tier 1 risk-based capital ratio was 8.39%, the total risk-based ratio was 12.03%, and the leverage ratio was 6.87%, all above the well-capitalized thresholds.

What acquisitions did Huntington make?

In 1995 Huntington acquired Security National Corporation, Reliance Bank of Florida, First Seminole Bank, and four Bank One, Dayton branches, and sold its Pennsylvania bank and certain thrift subsidiaries. On January 23, 1996, it completed the acquisition of Peoples Bank of Lakeland, Florida, a $534 million bank, for 4.7 million shares of common stock and about $46.2 million in cash.

What is the dividend and share repurchase picture?

Cash dividends declared were $.78 per share in 1995, up from $.68 in 1994. Huntington repurchased 9.6 million shares in 1995 for $204.6 million, and as of December 31, 1995, 3.9 million shares remained available for repurchase under the board's authorization.

HBAN 10-K FY1995 Annual Report — Revenue, Net Income, EPS

01—Abstract

Summary

Summary of the 10-K filed February 22, 1996. Cited figures are marked; the original filing is the authoritative source.

Huntington Bancshares Incorporated, a multi-state bank holding company headquartered in Columbus, Ohio, reported 1995 net income of $244.5 million^a, or $1.78 per share, compared with $242.6 million ($1.78) in 1994 and $236.9 million ($1.76) in 1993.

Return on average assets was 1.28% and return on average equity was 16.27%, versus 1.45% and 17.29% in 1994. Total assets reached $20.3 billion^b at December 31, 1995, up 14% from the prior year, driven by strong loan growth and a larger investment securities portfolio. Total loans rose to $13.26 billion from $12.26 billion.

Net interest income declined to $724.6 million^c from $756.1 million, and the net interest margin fell to 4.15% from 4.96%, reflecting narrowed spreads as funding costs rose faster than asset yields. Asset quality remained solid: non-performing assets fell to $77.0 million from $96.4 million, and the allowance for loan losses was 1.47% of total loans. Non-interest expense declined to $565.8 million from $596.6 million, helped by restructuring and lower FDIC assessments, while non-interest income rose to $248.4 million from $222.3 million.

Capital ratios were above well-capitalized thresholds, with a Tier 1 risk-based ratio of 8.39% and a leverage ratio of 6.87%. Huntington completed the acquisition of Peoples Bank of Lakeland, Florida on January 23, 1996, issuing 4.7 million shares and paying about $46.2 million^d in cash. Cash dividends declared rose to $.78 per share from $.68.

02—Key points

Key Highlights

Net income of $244.5 million in 1995, up slightly from $242.6 million in 1994; earnings per share of $1.78 were flat year over year.
Total assets of $20.3 billion at December 31, 1995, up 14% from the prior year, with total deposits of $12.6 billion.
Net interest margin compressed to 4.15% from 4.96% as funding costs rose faster than earning asset yields; net interest income fell to $724.6 million from $756.1 million.
Non-interest expense fell to $565.8 million from $596.6 million, while non-interest income rose to $248.4 million from $222.3 million.
Non-performing assets declined to $77.0 million from $96.4 million; net charge-offs were .32% of average total loans.
Capital ratios exceeded well-capitalized levels, with a Tier 1 risk-based ratio of 8.39% and a leverage ratio of 6.87%.
Cash dividends declared increased to $.78 per share from $.68, and the company repurchased 9.6 million shares in 1995 at an aggregate cost of $204.6 million.

03—Questions

Frequently Asked Questions

How did Huntington perform financially in 1995?
Net income was $244.5 million, or $1.78 per share, roughly flat with 1994. Return on average assets was 1.28% and return on average equity was 16.27%, both lower than the prior year's 1.45% and 17.29%.
Why did net interest income decline in 1995?
Net interest income fell to $724.6 million from $756.1 million because the net interest margin dropped to 4.15% from 4.96%. The filing attributes this to narrowed spreads, as funding costs increased more rapidly than yields on earning assets, and to a shift in deposit mix toward higher-cost certificates of deposit.
How strong is Huntington's asset quality and capital position?
Non-performing assets decreased to $77.0 million from $96.4 million, and the allowance for loan losses covered 353.76% of non-performing loans. The Tier 1 risk-based capital ratio was 8.39%, the total risk-based ratio was 12.03%, and the leverage ratio was 6.87%, all above the well-capitalized thresholds.
What acquisitions did Huntington make?
In 1995 Huntington acquired Security National Corporation, Reliance Bank of Florida, First Seminole Bank, and four Bank One, Dayton branches, and sold its Pennsylvania bank and certain thrift subsidiaries. On January 23, 1996, it completed the acquisition of Peoples Bank of Lakeland, Florida, a $534 million bank, for 4.7 million shares of common stock and about $46.2 million in cash.
What is the dividend and share repurchase picture?
Cash dividends declared were $.78 per share in 1995, up from $.68 in 1994. Huntington repurchased 9.6 million shares in 1995 for $204.6 million, and as of December 31, 1995, 3.9 million shares remained available for repurchase under the board's authorization.

04—Continue

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