1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
__________________________________________
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 or 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
__________________________________________
DATE OF REPORT: APRIL 12, 1995
__________________________________________
HUNTINGTON BANCSHARES INCORPORATED
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
___________________________________________
Maryland 0-2525 31-0724920
_________________ _____________________ ______________________
(STATE OR OTHER (COMMISSION FILE NO.) (IRS EMPLOYER
JURISDICTION OF IDENTIFICATION NUMBER)
INCORPORATION OR
ORGANIZATION)
___________________________________________
Huntington Center
41 South High Street
Columbus, Ohio 43287
(614) 480-8300
(ADDRESS, INCLUDING ZIP CODE, AND TELEPHONE NUMBER
INCLUDING AREA CODE OF REGISTRANT'S
PRINCIPAL EXECUTIVE OFFICES)
___________________________________________
2
ITEM 5. OTHER EVENTS.
On April 12, 1995, Huntington Bancshares Incorporated issued a news
release announcing its earnings for the first quarter ended March 31, 1995.
The information contained in the news release, which is attached as an exhibit
to this report, is incorporated herein by reference.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits.
Exhibit 99 -- News release of Huntington Bancshares Incorporated,
dated April 12, 1995.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
HUNTINGTON BANCSHARES INCORPORATED
Date: April 18, 1995 By: /s/ John D. Van Fleet
----------------------------------------
John D. Van Fleet
Senior Vice President and
Corporate Controller
3
[HUNTINGTON BANK LOGO]
FOR IMMEDIATE RELEASE FOR FURTHER INFORMATION, CONTACT:
SUBMITTED: April 12, 1995 JACQUELINE THURSTON (614) 480-3878
HUNTINGTON BANCSHARES REPORTS EARNINGS
FOR FIRST QUARTER OF 1995
COLUMBUS, Ohio -- Huntington Bancshares Incorporated (NASDAQ: HBAN)
today reported net income of $53.9 million, or $.41 per share, for the first
quarter of 1995, compared with $66.7 million, or $.51 per share, for the same
period one year ago. For the recent three months, Huntington's return on
average assets (ROA) was 1.23% and return on average equity (ROE) was 15.11%.
Per share amounts have been restated to reflect the five-for-four stock split
that was distributed to shareholders in July of 1994.
"We anticipated that the challenges experienced in the second half of
1994 would carryover into this year," stated Frank Wobst, chairman and chief
executive officer of Huntington Bancshares Incorporated. "The substantial rise
in interest rates and the competitive market environment continued to compress
the net interest margin and adversely impact fee income derived primarily from
mortgage banking and retail investment product sales. Despite these factors,
earnings and performance ratios were strong -- supported by robust loan growth
and reduced operating costs; credit quality and capital ratios also continue to
be exceptional."
-More-
4
Huntington continued to experience impressive loan growth
during the first quarter. Average total loans increased 13.6%
from the same period in 1994 comprised of commercial loans up
9.9%, consumer loans up 16.8%, and lease financing up 33.4% from
the first quarter of 1994. Fueled by this strong loan growth,
average earning assets increased 5.1% from the first quarter of
1994.
Net interest income in the first quarter was $173.0 million,
down $30.1 million from the first three months of 1994 but only
a $4.2 million decline from the fourth quarter of 1994. The net
interest margin was 4.27% in the most recent three month period
compared with 5.31% one year ago. The decrease resulted from
significantly higher interest rates, an unfavorable liability
sensitive position plus competitive pressures on loan and
deposit mix and pricing and a substantial decrease in mortgages
held for sale.
Non-interest income, excluding securities transactions, was
$61.8 million for the first quarter of 1995 compared with $59.5
million for the same period in 1994. Increased fees from
service charges on deposits and credit cards substantially
offset the effects of a 37.9% reduction in mortgage banking
income.
Non-interest expense in the first three months of 1995 declined
4.5% from the corresponding period one year ago and was down
2.3% from the fourth quarter of 1994. This drop was primarily
attributable to reduced personnel costs, much of which related
to the company's restructuring of its mortgage banking
operation.
Huntington's asset quality measures remain among the best of
the largest banking companies in the country. Non-performing
loans declined to $52.3 million, or .41% of total
-More-
5
loans at March 31, 1995, from $68.1 million, or .61% of total
loans at the same time last year. Other real estate also
declined over the past twelve months, from $65.7 million to
$26.5 million. Non-performing assets as a percent of loans and
other real estate totaled .62% at the end of the most recent
quarter down nearly half from a year ago when it was 1.2%. Net
charge-offs, as a percent of average total loans, continued
their downward trend to .19% in the first quarter of 1995,
compared with .24% during all of 1994.
Huntington's allowance for loan losses totaled $199.3 million
at the end of the first quarter of 1995, or 1.57% of total
loans. At the most recent quarter end, the allowance for loan
losses represented 381% of non-performing loans and the
allowance for loan losses and other real estate was 235% of
total non-performing assets.
Huntington's capital position continues to be strong. Average
equity to average assets was 8.11% for the first quarter of 1995
versus 8.29% for the same period last year. The company's Tier
I and total risk-based capital ratios were 9.46% and 13.41%,
respectively, and its Tier I leverage ratio was 7.76% at quarter
end 1995. Huntington's capital ratios exceed the regulatory
requirements to be considered a "well-capitalized" bank holding
company.
At March 31, 1995, Huntington had three acquisitions pending
which, subject to regulatory approval, are expected to be
completed in the second quarter of 1995. Security National
Corporation of Maitland, Florida is a privately-held company
with assets of $180.4 million. Reliance Bank of Florida,
headquartered in Melbourne, Florida is also privately-owned and
has total assets of $92.7 million. Both of these transactions
will be accounted for as a pooling-of-interests.
Privately-owned First Seminole Bank located in Lake Mary,
Florida has
-More-
6
assets totaling $48 million and will be accounted for as a
purchase.
Huntington Bancshares is an $18.0 billion regional bank holding
company headquartered in Columbus, Ohio. The company's banking
subsidiaries operate 344 offices in Ohio, Florida, Illinois,
Indiana, Kentucky, Michigan, Pennsylvania, and West Virginia.
In addition, Huntington's mortgage, trust, investment banking
and automobile finance subsidiaries manage 74 offices in the
eight states mentioned as well as Georgia, Maryland, New Jersey,
North Carolina, and Virginia.
###
7
HUNTINGTON BANCSHARES INCORPORATED
COMPARATIVE SUMMARY (CONSOLIDATED)
(in thousands of dollars, except per share amounts)
CONSOLIDATED RESULTS THREE MONTHS ENDED
OF OPERATIONS MARCH 31, CHANGE
- ------------------------- ------------------------------------
1995 1994 %
-------- -------- --------
Interest Income $337,102 $301,637 11.8 %
Interest Expense 164,053 98,470 66.6
-------- --------
Net Interest Income 173,049 203,167 (14.8)
Provision for Loan Losses 4,578 8,464 (45.9)
Non-Interest Income 61,815 61,253 0.9
Non-Interest Expense 147,046 154,025 (4.5)
Provision for Income Taxes 29,385 35,189 (16.5)
-------- --------
NET INCOME $53,855 $66,742 (19.3) %
======== ========
PER COMMON SHARE AMOUNTS (1)
- -----------------------------
Net Income $0.41 $0.51 (19.6) %
Cash Dividends Declared $0.20 $0.16 25.0 %
Shareholders' Equity
Per Common Share $11.39 $10.64 7.0 %
Average Shares
Outstanding (000's) 130,237 129,840
KEY RATIOS
- ----------
Return On:
Average Total Assets 1.23 % 1.60 %
Average Shareholders' Equity 15.11 % 19.26 %
Efficiency Ratio 62.85 % 58.71 %
Net Interest Margin 4.27 % 5.31 %
Average Equity/Average Assets 8.11 % 8.29 %
Tier I Risk-Based Capital Ratio
(period end) 9.46 % 10.01 %
Total Risk-Based Capital Ratio
(period end) 13.41 % 14.41 %
Tier I Leverage Ratio
(period end) 7.76 % 7.54 %
CONSOLIDATED STATEMENT
OF CONDITION DATA AT MARCH 31 CHANGE
- --------------------------- ----------------------------------------------------
1995 1994 %
------------ ------------ ------
Total Loans $ 12,687,137 $ 11,121,275 14.1 %
Total Deposits $ 11,940,846 $ 11,687,534 2.2
Total Assets $ 18,144,571 $ 16,487,468 10.1
Shareholders' Equity $ 1,479,496 $ 1,382,379 7.0
ASSET QUALITY
- -------------
Non-performing loans $ 52,273 $ 68,108
Total non-performing assets $ 78,798 $ 133,772
Allowance for loan losses/total loans 1.57 % 1.93 %
Allowance for loan losses/non-performing loans 381.18 % 314.37 %
Allowance for loan losses and other real
estate/non-performing assets 235.43 % 152.27 %
<FN>
(1) Per share amounts have been adjusted for the five-for-four stock split distributed in July 1994.