Huntington Bancshares Inc. swung to a second-quarter profit, helped by increased revenue and falling loan-loss provisions.
The results "represented another very significant step forward for Huntington," said Chairman and Chief Executive Stephen D. Steinour, who also noted the bank saw "another quarter of significantly improved credit quality performance."
The Ohio regional bank struggled during the recession, mired in red ink for more than a year. But improved first-quarter results, helped by a tax benefit, snapped the string of quarterly losses as Huntington has seen credit-loss provisions decline--a trend that has boosted the bottom lines of many banks.
Huntington reported a second-quarter profit of $48.8 million, or 3 cents a share, from a year-earlier loss of $125.1 million, or 40 cents, a year earlier. The most-recent quarter included a 7-cent impact related to troubled mortgage loans bought last year from Franklin Credit Management Corp.
Revenue jumped 14% to $699.3 million.
Analysts polled by Thomson Reuters had most recently forecast break-even results on $649 million in revenue.
Loan-loss provisions were $193.4 million, down from $413.7 million a year earlier and $235 million in the prior quarter. Net charge-offs, or loans lenders don't think are collectible, fell to 3.01% of average loans from 3.43% on year but rose from 2.58% sequentially. Nonperforming loans, those near default, fell to 4.24% from 5.18% and 5.17%, respectively.
Shares closed at $5.67 on Wednesday and were inactive premarket. The stock has risen 45% in the past year.