Huntington's Results Hurt by Restructuring, M&A Costs

Huntington Bancshares in Columbus, Ohio, reported lower third-quarter earnings despite an uptick in revenue. The culprit was its nearly $23 million in special expenses.

The $58.7 billion-asset company said Friday that it earned $155 million, down about 13% from a year earlier. Its earnings per share of 18 cents fell one cent short of estimates from analysts polled by Bloomberg.

Third-quarter revenue was $721.2 million, up 5% from a year earlier. Net interest income rose 10%, to $473.8 million, while noninterest income fell 3%, to $247.3 million. Huntington acquired the $760 million-asset Camco Financial in March and two dozen branches from Bank of America in September.

Huntington recorded $22.8 million in expenses related to those acquisitions, the planned closing of 26 branches by the end of the year and the cutting of nearly 200 jobs. Noninterest expenses totaled $480.3 million, up 13% from a year earlier. Personnel costs climbed 20%, to $275.4 million, and expenses for outside data processing and other services rose 8%, to $53.1 million.

Total average loans and leases rose 10%, to $46.1 billion, as the commercial and industrial portfolio grew 9%, to $18.6 billion, and automobile loans soared 32%, to $8 billion. Huntington's net interest margin fell 14 basis points, to 3.20%, from a year earlier.