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Exhibit 99(b)
NEWSRELEASE [LOGO]
HUNTINGTON BANKS
Take control of your money.(TM)
FOR IMMEDIATE RELEASE FOR FURTHER INFORMATION, CONTACT:
SUBMITTED: OCTOBER 14, 1997 ANNE CREEK (614) 480-3954
LAURIE COUNSEL (614) 480-3878
HUNTINGTON BANCSHARES' THIRD QUARTER
PRODUCES RECORD EARNINGS AND SUCCESSFUL MERGER
COLUMBUS, Ohio -- Huntington Bancshares Incorporated (NASDAQ:HBAN:
www.huntington.com) today reported another record earnings quarter. Prior to
pooling results for the First Michigan Bank acquisition, Huntington earned $.48
per share for the quarter and $1.36 for the nine months ended September 30,
1997, representing increases of 14.3% and 13.3%, respectively, versus the same
periods last year. For the quarter, Huntington's return on average equity was
18.12% and return on average assets was 1.39%. Continued strength in consumer
lending combined with strong fee income during the quarter contributed to the
earnings momentum.
Third quarter also represents the first quarter in which The
Huntington operated as one national bank. As of June 30, 1997, Huntington
collapsed its five primary subsidiary bank charters into one interstate
charter. The Huntington National Bank is one of the first regional banks in the
United States to operate as one bank.
Frank Wobst, chairman and chief executive officer of Huntington
Bancshares stated, "The movement to one integrated bank represents several
years of system and operational reorganization designed to provide significant
operating efficiencies while allowing Huntington customers the opportunity to
transact business regardless of geographic boundaries. I am extremely pleased
with the operational progress we have made and the continued strength of our
core earnings."
On September 30, 1997, Huntington closed the previously announced
acquisition of First Michigan Bank Corporation, a $3.6 billion asset multi-bank
holding company in western Michigan. As part of the integration, Huntington
successfully merged the fourteen banking
Visit The Huntington's web site at www.huntington.com
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charters of First Michigan into The Huntington National Bank. This acquisition
brings Huntington's total assets to $25.6 billion and increases market
capitalization to approximately $7.2 billion. In addition, Huntington's
Michigan presence more than doubles with assets of $7 billion, 137 banking
offices, and an electronic banking network currently serving over 350,000
households.
"The integration of First Michigan is proceeding nicely," said Wobst.
"Our expansion into western Michigan strengthens Huntington's presence in a
state where we have enjoyed much success and provides entry into one of the
fastest growing markets in the United States."
One-time merger related expenses during the quarter included the
previously announced $35 million restructure charge consisting primarily of
personnel, facilities and systems costs; $12.2 million in professional fees
incurred to effect the merger; and $8.8 million of other one-time charges
related to the merger.
Excluding the impact of these one-time charges, combined third quarter
earnings of the two companies increased 15.0% over the same period last year to
$.46 per share, compared with $.40 per common share on a restated basis. On
this same basis, earnings for the first nine months of 1997 grew 12.9% to $1.31
per common share compared with $1.16 per common share for the same period a
year ago.
Reported net income for the combined companies for the third quarter,
including the special one time charges, was $41.2 million or $.22 per common
share and for the first nine months was $202 million or $1.06 per common share.
Details of the combined results are as follows:
Net interest income was $257.2 million in the recent three months, an
increase of 13.7% over the same period in 1996. For the nine months ended
September 30, 1997, net interest income of $767.7 million was 15.3% higher than
the first nine months of last year. The 4.41% margin reported for the third
quarter was 16 basis points better than one year ago.
Non-interest income, excluding securities gains, totaled $94.9 million
and $247.4 million, respectively, in the recent quarter and nine months,
compared with $75.2 million and $222.5 million for the same periods last year.
Annualized growth in core fee income was 14% and 11% on both a quarter and
year-to-date basis. Significant growth continues to be seen in trust,
electronic banking, and investment product sales.
Non-interest expense, excluding the restructuring and other merger
related costs, totaled $193.7 million in the third quarter of 1997, compared
with $168.5 million in the same three
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months of 1996. The impact of higher advertising, marketing and volume driven
expenses in 1997 represent the majority of the increase. For the first nine
months of the year, non-interest expense of $563.4 million was 10.4% higher than
the same period last year.
During the third quarter, Huntington sold $263 million and securitized
$113 million of single family residential loans resulting in gains of
approximately $7.0 million. Excluding the impact of these sales and
securitizations, Huntington's loan growth continues to be strong with consumer
loans growing 13% and commercial loans growing 10.4% over the same nine months
last year.
Asset quality measures remain strong. Net charge-offs in the third
quarter declined to .41% compared with .56% in the second quarter and .46% for
the same period last year. Non-performing assets increased to $92.2 million
compared with $79.4 million as of September 30, 1996, and a second quarter 1997
total of $80.0 million. The increase resulted from a single large commercial
credit classified as non-performing during the quarter. Coverage ratios were
328.71% of non-performing loans and 277.31% of non-performing assets. During
the quarter, Huntington covered 154.63% of net charge-offs and increased the
allowance for loan losses to 1.46% of total loans, compared to second quarter
of 1.39%.
Average equity to assets was 7.67% for the recent quarter and 7.45%
for the first nine months of 1997. The company's Tier I and total risk-based
capital ratios were 8.86% and 11.95% respectively, and its Tier I leverage
ratio was 7.54% at September 30, 1997, well above the regulatory requirements
for a "well capitalized" bank.
With over 131 years of serving the financial needs of its customers,
Huntington Bancshares Incorporated is a regional bank holding company
headquartered in Columbus, Ohio with assets of $25.6 billion. Huntington
provides innovative products and services through its 527 offices in Ohio,
Florida, Georgia, Indiana, Kentucky, Maryland, Michigan, New Jersey, North
Carolina, Pennsylvania, South Carolina, Virginia and West Virginia. Huntington
also offers products and services through its technologically-advanced, 24-hour
telephone bank, a network of more than 1,000 ATMs and its Web Bank at
www.huntington.com. Corporate communications and financial information are also
available at this web site address. Publicly traded as NASDAQ:HBAN, the stock
is included in the S&P 500 Index.
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HUNTINGTON BANCSHARES INCORPORATED
COMPARATIVE SUMMARY (CONSOLIDATED)
(in thousands, except per share amounts)
CONSOLIDATED RESULTS THREE MONTHS ENDED NINE MONTHS ENDED
OF OPERATIONS SEPTEMBER 30, CHANGE SEPTEMBER 30, CHANGE
- ------------------------ ------------------------------- -------------------------------------
1997 1996 % 1997 1996 %
--------- --------- ----- ---------- ---------- -----
Interest Income $502,821 $445,453 12.9% $1,481,713 $1,323,016 12.0%
Interest Expense 245,663 219,217 12.1 714,046 656,983 8.7
-------- -------- ---------- ----------
Net Interest Income 257,158 226,236 13.7 767,667 666,033 15.3
Provision for Loan Losses 28,351 22,978 23.4 81,562 51,333 58.9
Securities Gains 1,242 6,172 N.M. 6,944 13,379 (48.1)
Non-Interest Income 94,855 75,212 26.1 247,385 222,515 11.2
Non-Interest Expense 244,910 168,473 45.4 614,576 510,502 20.4
Provision for Income Taxes 38,762 38,725 0.1 123,844 114,955 7.7
-------- -------- ---------- ----------
NET INCOME $ 41,232 $ 77,444 (46.8)% $ 202,014 $ 225,137 (10.3%)
======== ======== ========== ==========
PER COMMON SHARE AMOUNTS (1)
Net Income $0.22 $0.40 (45.0)% $1.06 $1.16 (8.6%)
Cash Dividends Declared $0.20 $0.18 11.1% $0.56 $0.50 12.0%
Shareholders' Equity
(period end) $10.18 $9.27 9.8% $10.18 $9.27 9.8%
AVERAGE COMMON SHARES
OUTSTANDING (1) 191,245 191,711 (0.2)% 190,562 193,294 (1.4%)
KEY RATIOS
Return On:
Average Total Assets 0.65% 1.33% 1.08% 1.30%
Average Shareholders' Equity 8.41% 17.75% 14.48% 16.98%
Efficiency Ratio 55.11% 55.88% 55.26% 57.20%
Net Interest Margin 4.41% 4.25% 4.43% 4.20%
Average Equity/Average Assets 7.67% 7.47% 7.45% 7.64%
Tier I Risk-Based Capital Ratio
(period end) (2) 8.86% 8.32% 8.86% 8.32%
Total Risk-Based Capital Ratio
(period end) (2) 11.95% 11.57% 11.95% 11.57%
Tier I Leverage Ratio
(period end) (2) 7.54% 6.99% 7.54% 6.99%
CONSOLIDATED STATEMENT
OF CONDITION DATA AT SEPTEMBER 30, CHANGE
- ------------------------ ---------------------------------------------------------
1997 1996 %
------------ ------------- -------
Total Loans $ 17,692,634 $ 16,359,080 8.2%
Total Deposits $ 17,589,786 $ 16,153,791 8.9
Total Assets $ 25,576,135 $ 23,998,460 6.6
Shareholders' Equity $ 1,945,991 $ 1,766,689 10.1
ASSET QUALITY
Non-performing loans $ 78,454 $ 63,071
Total non-performing assets $ 92,216 $ 79,392
Allowance for loan losses/total loans 1.46% 1.41%
Allowance for loan losses/non-performing loans 328.71% 366.24%
Allowance for loan losses and other real
estate/non-performing assets 277.31% 282.47%
(1) Adjusted for stock splits and stock dividends, as applicable.
(2) Estimated.
N.M.-Not meaningful