Huntington Bancshares in Columbus, Ohio, reported a second-quarter profit of $175 million, off 11% from the same period in 2015. Part of the reason for the drop was a $21 million charge related to its pending acquisition of FirstMerit in Akron.
Excluding one-time charges, Huntington's core second-quarter results fell in line with expectations, according to Steve Steinour, the chairman and chief executive of the $74 billion-asset company.
"The quarter demonstrated encouraging growth in business lending and ongoing strong performance in auto loans and residential mortgage," he said in a news release Thursday. "We have continued executing our strategy to balance growth with disciplined risk management."
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The companies agreed to divest the branches, along with nearly $738 million in deposits, to secure Justice Department approval.
July 13 -
FirstMerit reached out to a foreign bank last fall in an effort to negotiate a sale, but the Ohio company eventually agreed to sell itself to Huntington Bancshares for $3.4 billion.
June 9 -
A former cybersecurity expert with the National Security Agency joined the board of directors at Huntington Bancshares in Columbus, Ohio.
May 10
Total revenue rose 1% year over year to $787 million. However, revenue gains were partially offset by increased operating costs. Huntington's noninterest expense jumped 6% to $524.
Huntington reported solid gains in loans and deposits, but it also saw an uptick in problem credits. Nonperforming assets totaled $490 million on June 30, up 23%; they equaled 0.93% of total assets.
"I see no evidence of near-term deterioration on the horizon. …We're simply moving off cyclical lows," Steinour said.
Huntington's net interest margin narrowed 14 basis points to 3.06%. The company said the margin should remain above 3% for the remainder of 2016.
