This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Huntington Puts Brakes on Home Loans Following Fed Rules

The bank also expects commercial and industrial loan growth to continue, as the "C&I sales pipeline remains robust with much of this reflecting the positive impact from our strategic initiatives, focused OCR sales process, and continued support of middle market and small business lending in the Midwest."

Average loans and leases totaled $40.1 billion as of Sept. 30, declining 3% from the previous quarter, although they increased from 2% from a year earlier. Average commercial and industrial loans increased 2% sequentially and 20% year-over-year, to $16.3 billion. Contributing to the decline if the loan portfolio was a "$0.9 billion decrease in average automobile loans, reflecting the prior quarter's reclassification of $1.3 billion of automobile loans into held for sale, and a $0.4 billion decrease in commercial real estate loans."

The company completed a securitization of auto loans in October, which will boost its fourth-quarter results.

The bank's focus continues to be on building its core deposits, particularly noninterest bearing checking account deposits, which grew 2% during the third quarter and 41% year-over-year, to $12.3 billion.

Steinour says that "we've added more than 250,000 households in the last two years, which puts us at a rate to double in roughly eight years without acquisitions. Importantly, the total household base every month is buying more products and services from us."

In the company's earnings release, Steinour said that "not only are we gaining customers, we are selling deeper with 76% of consumer checking account households and 33% of commercial relationships now with 4 or more products or services."

Huntington's noninterest expenses increased to $458.3 million during the third quarter, from $444.3 million the previous quarter, and $439.1 million a year earlier. The company said that the sequential increase in expenses reflected "higher healthcare costs and a $4.4 million increase in the cost associated with early extinguishment of debt including the trust preferred securities" redeemed during the third quarter, and also "$4.5 million of expense related to the development of infrastructure and systems to support the Federal Reserve CCAR process."

CCAR stands Comprehensive Capital Analysis and Review, which is the Federal Reserve's annual stress test process.
2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
HBAN $11.35 -1.05%
AAPL $126.44 -0.13%
FB $87.28 0.43%
GOOG $523.40 0.30%
TSLA $280.02 4.04%

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs