Huntington Posts Loss, Shares Fall

On Thursday, Huntington Bancshares ( HBAN) said it swung to a loss, as continuing loan losses for the Midwestern player plagued second-quarter results.

Huntington Bancshares reported a net loss in the second quarter attributable to common shareholders of $182.5 million, or 40 cents per share, well short of the net income of $90.2 million, or 25 cents a share, posted in the year-ago quarter.

Though, sequentially, the Columbus, Ohio-based bank narrowed its $2.49 billion loss posted in the first quarter.

On average, analysts anticipated Huntington Bancshares to lose 18 cents per share.

Huntington's credit-loss provision soared to $413.7 million, more than tripling since the year-ago period and also up from $291.8 million sequentially. Meanwhile, net charge-offs rose to $334.4 million from $65.2 million last year, but fell sequentially from $341.5 million.

However, as a result of a 5% drop in average total loans and leases, the charge-offs represented 3.43% of average loans in the second quarter, up from 3.34% posted in the previous quarter.

Net interest income slid to $349.9 million from $389.9 million in the year-ago quarter, while net interest margin fell during the same period.

CEO Stephen Steinour highlighted the company's capital-raising efforts in the quarter after receiving $1.4 billion in funds from the federal government's Troubled Asset Relief Program in the fall. In a press release, Steinour said shoring up capital set the stage for repayment of TARP funds, but went on to say that "it would be premature to consider this in the near term given the economic uncertainty in our Midwest region."

Huntington fell after the opening bell, sliding 6.6%, or 26 cents, at $3.66. Shares are changing hands down over 50% since the year began.

Copyright 2009 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

More from Stocks

Tyson Foods CEO: We Aren't Done Making Deals

Tyson Foods CEO: We Aren't Done Making Deals

The Single Biggest Reason Trade War Fears Could Finally Topple the Stock Market

The Single Biggest Reason Trade War Fears Could Finally Topple the Stock Market

Stocks Dive Globally as U.S.-China Trade War Intensifies

Stocks Dive Globally as U.S.-China Trade War Intensifies

5 Stock Picks Under $10 for Millennials

5 Stock Picks Under $10 for Millennials

China Trade War, Google, JD.com, Tesla, Brooks Koepka - 5 Things You Must Know

China Trade War, Google, JD.com, Tesla, Brooks Koepka - 5 Things You Must Know