This Day On The Street
Continue to site
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 Earnings Fall On Legal, Acquisition Costs

Huntington Bancshares earnings story updated from 9:08 a.m. with new share price and additional details in final paragraph about legal exposure.

NEW YORK ( TheStreet) -- Huntington Bancshares  (HBAN - Get Report) earnings declined slightly in the first quarter, on acquisition costs and an increase in litigation reserves despite growth in several business units.

The Columbus, Ohio-based lender reported earning of $149 million, or $0.17 cents per share on Wednesday, matching analyst expectations. Profits fell 3% versus the first quarter and 6% compared to the fourth quarter of 2013.

Huntington CEO Stephen Steinour

Shares were lower by 1.85% to $9.30 per share in late morning trades.

Stephen Steinour, CEO and Chairman, said in an interview that the unusually cold winter caused business activity to be more muted during the quarter. Still, he said Huntington is growing its customer base at record levels and the economy in the six states where the bank operates is improving.

Must Read: Bank of America Swings to Loss on Mortgage Settlement

"We're seeing an increase in business activity and investment and a growing level of confidence which bodes well for us," he said.

Huntington incurred $12 million in expenses tied to acquisition of Camco Financial, announced in October. The litigation reserve increased by $9 million.

A spokeswoman for the bank declined to give details about the reason for the increase in the litigation reserve. Huntington added $23.5 million to its legal reserve in 2012 and $17 million in 2011. It did not increase the reserve in 2013.  Huntington's most extensive disclosure about its litigation risks in its latest 10-K is tied to Cyberco Holdings, a now-bankrupt company that was raided by the FBI and IRS in 2004 and found to have engaged in equipment leasing fraud. Huntington is also a defendant along with several other banks in a class action lawsuit related to the mortgage electronic registration system (MERS).

Huntington estimates in the 10-K  that the "range of reasonably possible losses" in excess of reserves, is from $0-120 million. However it adds that "for certain other cases, Management cannot reasonably estimate the possible loss at this time."

Follow @dan_freed

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
HBAN $10.19 1.29%
AAPL $93.64 -0.11%
FB $118.57 0.84%
GOOG $698.21 0.75%
TSLA $241.80 0.43%


Chart of I:DJI
DOW 17,891.16 +117.52 0.66%
S&P 500 2,081.43 +16.13 0.78%
NASDAQ 4,817.5940 +42.2360 0.88%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs