Huntington Bancshares Profit Rises 21% (Update 1)
- Huntington Bancshares reports first-quarter earnings per share of 17 cents.
- Analysts were expecting EPS of 14 cents.
- Noninterest income grew 24% from the fourth quarter and 21% year over year.
Updated with interview comments from Huntington CEO Stephen Steinour.
NEW YORK (TheStreet) -- Huntington Bancshares (HBAN) on Wednesday reported a 21% earnings increase, with boosts from auto loan securitizations and very strong mortgage volume.
The Columbus, Ohio, lender reported first-quarter earnings of $153.3 million, or 17 cents a share, compared to $126.9 million, or 14 cents a share, during the fourth quarter, and $126.4 million, or 14 cents a share, during the first quarter of 2011.
|Huntington Bancshares CEO Stephen D. Steinour|
The first-quarter earnings came in ahead of the 14-cent estimate among analysts polled by Thomson Reuters.
The company's noninterest income increased 24% from the fourth quarter and 21% year over year to $285.3 million, reflecting $23 million in gains on auto loan securitizations and $46.4 million in mortgage banking income. The mortgage income increased from $24.1 million the previous quarter and $22.7 million a year earlier, and was "driven by an $11.6 million net mortgage servicing rights (MSR) improvement and a $10.1 million increase in origination and secondary marketing income."
Huntington reported that its average commercial and industrial loans grew at a 17% annualized pace during the first quarter. The average balance for these loans was $14.8 billion in the first quarter, increasing 4% sequentially and 13% year over year.
Average total loans and leases were $38.2 billion in the first quarter, declining slightly from the fourth quarter but increasing 4% year over year, as the increase in commercial and industrial loans was partially offset by declining consumer loan balances.