Slides 2 through 4 notes several aspects of the basis of today's presentation. I encourage you to read these, but let me point out one key disclosure. The presentation contains both GAAP and non-GAAP financial measures where we believe it is helpful to understanding Huntington's results of operations or our financial position. Where the non-GAAP financial measures are used, the comparable GAAP financial measure as well as a reconciliation to the comparable GAAP financial measure can be found in the slide presentation in its appendix in the earnings press release and the quarterly financial review and the quarterly performance discussion or in the related Form 8-K filed today, all of which can be found on our website.Now turning to Slide 5. Today's discussion, including the Q&A period may contain forward-looking statements. Such statements are based on informations and assumptions available at this time, and are subject to changes and risks and uncertainties, which may cause actual results to differ materially. We assume no obligation to update such statements. For a complete discussion of risks and uncertainties, please refer to this slide and material filed with the SEC, including our most recent forms 10-K, 10-Q and 8-K. Now turning to today's presentation. As noted on Slide 6, participating today are Steve Steinour, Chairman, President and Chief Executive Officer; Don Kimble, Senior Senior Vice President and Chief Financial Officer; Dan Neumeyer, Senior Executive Vice President and Chief Credit Officer; also present is Nick Stanutz, Senior Executive Vice President and Head of Automobile, Finance and Commercial Real Estate. Let's get started turning to Slide 7. Steve? Stephen D. Steinour Welcome. I'll begin with the review of our third quarter performance highlights. After my overview time, we'll follow with this recap of our financial performance. Dan will provide an update on CRE. I'll then return with an update on our Fair Play and OCR, what we refer to as our Optimal Customer Relationship strategy and close with a discussion of our expectations for the next few quarters.
So turning to Slide 8, we reported net income of $143.4 million or $0.16 a share, essentially flat with the second quarter. Nevertheless, third-quarter results represented good progress against our strategic plan designed to improve long-term profitability and shareholder returns despite significant headwinds from the operating and interest rate environment.We're clearly focus on the long-term and the level of returns we generate for the ROAs of the company. This quarter's ROA was 1.05%. We were still able to bring a solid 13% return on tangible common equity even as we took several steps to continue to reduce risk in both the liquidity during the quarter marked by political and economic uncertainty. Our $240.7 million in pretax, pre-provision income was in line with last quarter, and Don will provide additional details in a few minutes. Fully taxable equivalent revenue increased $5.8 million or 1%. It's reflected a $3 million or 1% increase in net interest income. We saw several -- we saw average total loans growing at 8% annualized rate with C&I and indirect automobile loans with strong annualized growth rates of 9% and 17%, respectively. Demand deposits grew a very strong 28% annualized rate. Consumer non-interest-bearing DDA has increased to the 21% annualized rates which was last seen, in large part, the success of Asterisk-Free checking. Commercial DDA inflows where particularly strong and above normal growth levels and therefore, not likely to be repeated. The net interest margin decreased 6 basis points to 3.34%. This was more of a decline than we outlined in last quarter's call as we were unwilling to add credit or duration risk during this time of record low rates. Don will have a more detailed walk forward in a few minutes. Noninterest income increased $2.8 million or 1% reflecting a $15.5 million gain on sale of automobile -- from the automobile securitization. We view this as core earnings as we expect to use such securitizations from time to time to manage overall concentration risk of our auto portfolio. Several charges on deposit accounts increased -- service charges on deposit accounts increased $4.5 million or 7%, primarily driven by increased customer activity and new account growth. Read the rest of this transcript for free on seekingalpha.com