Updated from 7:48 a.m. ET with late morning market action and comment from Jefferies analyst Ken Usdin.NEW YORK (TheStreet) -- Huntington Bancshares (HBAN - Get Report) CEO Stephen Steinour says Federal Reserve Chairman Ben Bernanke's recent comments indicate the second quarter was "a benchmark quarter, reflecting significant confidence we are on a sustained recovery, which will be very good for us and the industry."The Columbus, Ohio, lender reported second-quarter earnings of $150.7 million, or 17 cents a share, down slightly from $151.8 million, or 17 cents a share, in the first quarter, and $152.7 million, or 17 cents a share, during the second quarter of 2012. Analysts polled by Thomson Reuters had estimated second-quarter earnings would come in at 16 cents a share.
|Huntington CEO Stephen Steinour|
Long-term StrategySteinour says Huntington's "theme is customer growth, with annualized growth in consumer deposits of 11.8% in the first quarter. We continue to take market share. In this low-rate environment it has not translated to significant revenue yet, but it will." The bank has been emphasizing "share of wallet" for deposit customers for some time. "Our customer acquisition continues to improve. We have just under 47% of our consumer checking households having six products or services. The more products and services we have, the more likely it is for those customers to stick with us over the long term," Steinour says. Steinour characterizes Huntington's second-quarter numbers as "solid." "There was a lot of change going on during the first half of the year," Steinour says. He is particularly focused on comments from Federal Reserve chairman Bernanke indicating the central bank may pull back on its monetary stimulus this year. "Bernanke's comments about tapering are a benchmark for the U.S. economy and growth. This poses a challenge to the industry for mortgage banking income but will be very positive for the opportunities economic expansion affords us."
Basel IIIHuntington reported a June 30 Basel 1 Tier 1 common equity ratio of 10.71%, increasing from 10.08% a year earlier, and said the Federal Reserve's capital rules finalized on July 2 would lower the Tier 1 common equity ratio by about 60 basis points.
Interested in more on Huntington Bancshares? See TheStreet Ratings' report card for this stock. -- Written by Philip van Doorn in Jupiter, Fla. >Contact by Email. Follow @PhilipvanDoorn