Huntington Bank’s 2Q better than expected
CHARLESTON, W.Va. — During its second quarter, regionally-based Huntington Bank’s earnings were better than Wall Street expectations, bank officials told reporters Friday during a conference call.
The Columbus, Ohio-based bank enjoyed a 9 percent net income increase from last year to $165 million.
“It was driven mostly by loan growth and growth in our security portfolio,” said Andrew Paterno, president of Huntington Bank in West Virginia.
Overall revenue grew by 5 percent.
Average loans and leases increased to $3.7 billion on by 9 percent from last year. Commercial and industrial leases and loans were up 7 percent. And automobile loans experienced the most growth at 39 percent to $2.1 billion.
“The large percentage increase is just a function of keeping them on the books verses selling them a couple years ago,” Mark Muth, Huntington Bank assistant director of investor relations, said about the auto loan increase.
Huntington remained the Small Business Administration’s largest lender by number of loans.
Paterno said the bank is proud of its lending.
The SBA loans really help growth small businesses in the banks various regions, Paterno added.
Muth was pleased with the bank’s ability to grow its revenue in what he described as a “challenging environment.”
“Banks are struggling out there with the low, flat yield curve and its impact on our net interest margin,” Muth said. “There’s also intense competition out there for loans.”
Paterno said Huntington’s West Virginia branches are performing in stride with national company trends.
“We are really bullish on the economy here [in West Virginia],” Paterno said. “It’s getting a little better. We are seeing a lot more activity on people wanting loans — whether it’s the commercial side or the business banking side.”
Huntington is focused on continuing to grow in the Mountain State with its current strategies, Paterno said.
“We feel pretty good about West Virginia,” Paterno said.
Reach Caitlin Cook at email@example.com, 304-348-5113 or follow @caitlincookWV on Twitter.