Huntington Bancshares Incorporated (NASDAQ: HBAN;
) was notified by the Federal Reserve that it had no objection to Huntington's proposed capital actions included in Huntington's capital plan submitted to the Federal Reserve in January of this year. These actions included a 25% increase in the dividend per common share to $0.05, starting in the second quarter of 2013, and the potential repurchase of up to $227 million of common stock through the first quarter of 2014. Huntington's Board of Directors is expected to consider the next quarterly dividend and share repurchase program at its April 16, 2013 meeting.
“Today’s action by the Federal Reserve highlights our strong capital levels and financial performance,” said Stephen D. Steinour, chairman, president and CEO of Huntington. “This action allows us to increase our common dividend and share repurchase authorization so that we can expand our disciplined approach to capital management. Reinvesting excess capital to organically grow the business remains our priority. Importantly, dividends and share repurchases provide us additional means of creating long-term shareholder value. Actual levels of dividends and share repurchases over time will depend on various factors, including earnings, growth opportunities, and market conditions.”
Huntington Bancshares Incorporated is a $56 billion regional bank holding company headquartered in Columbus, Ohio. The Huntington National Bank, founded in 1866, provides full-service commercial, small business, and consumer banking services; mortgage banking services; treasury management and foreign exchange services; equipment leasing; wealth and investment management services; trust services; brokerage services; customized insurance brokerage and service programs; and other financial products and services. The principal markets for these services are Huntington’s six-state banking franchise: Ohio, Michigan, Pennsylvania, Indiana, West Virginia, and Kentucky. The primary distribution channels include a banking network of more than 690 traditional branches and convenience branches located in grocery stores and retirement centers, and through an array of alternative distribution channels including internet and mobile banking, telephone banking, and more than 1,350 ATMs. Through automotive dealership relationships within its six-state banking franchise area and selected other Midwest and New England states, Huntington also provides commercial banking services to the automotive dealers and retail automobile financing for dealer customers.