Huntington Bancshares Inc. of Columbus, Ohio, has asked holders of preferred stock to convert their shares into common stock to beef up the company's common equity.
Huntington said Wednesday that certain institutional shareholders agreed to convert 53,809 preferred shares into 11.7 million shares of common stock, which would increase tangible common equity to $53.8 million.
On Tuesday Huntington said other preferred shareholders had agreed to convert 43,100 preferred shares into nine million shares common stock, which would lift tangible common equity to $43.1 million. Huntington does not have a formal program in place to convert preferred stock, but some institutional investors approached the company requesting their shares be converted, a spokeswoman said. The Securities and Exchange Commission limits Huntington in how many conversions it can do, but the company has still room for more, the spokeswoman said.
Huntington's two conversions would lift its tangible common equity ratio to over 4.1%.