Quarterly profits at Huntington Bancshares (HBAN) in Columbus, Ohio, dipped slightly on declining loan revenue, but still beat analysts' estimates.
The $56 billion-asset company announced Thursday a second-quarter profit of $150.7 million, down 1% from the second quarter of 2012. Per-share earnings of 17 cents were 1 cent above the average expectation of analysts polled by Bloomberg.
Huntington's net interest income was $424.9 million, down 1%, as its net interest margin tightened by 4 basis points, to 3.38%. Total earning assets were virtually unchanged, at $51.2 billion, as growth in commercial and industrial and auto loans made up for declines in commercial real estate, home equity and residential mortgage lending
Noninterest income slid by 2%, to $248.7 million, as mortgage banking revenue declined by 12%, to $33.7 million. Huntington saw a 14% bump in electronic banking revenue, to $23.3 million, and a 3% rise in service charges on deposit accounts, to $68 million.
Noninterest expense was $445.9, up less than 1%, as lower litigation fees partially offset a 9% rise in personnel costs, to $263.9 million.
Huntington's credit quality improved, as provision for loan losses dropped 32% , to $24.7 million, and net chargeoffs fell 59%, to $34.8 million. Nonaccrual loans fell 23%, to $363.5 million.