So the combination of those two things for June was 3.43% and hence, additive to the overall NIM by around said, 2 basis points. As such, a 2% growth rate for a quarter would represent an annualized 8% growth rate. Huntington Bancshares has raised its […] Huntington Bancshares Inc. intends to close 198 branch offices — about half of which are based in Meijer Inc. stores in Michigan — after completing the proposed $22 billion acquisition of Detroit-based TCF Financial Corp. You just mentioned, you look at the behavior of your credits versus your expectations. Finally, I would like to note that the normal slides containing comparisons for our net interest income, fee income and non-interest expense can be found in the appendix. Is that just a short-term blip or are you seeing just the increase in number of COVID cases beginning to impact volume overall? The results did not meet Wall Street expectations. On a linked quarter basis, NALs increased $90 million, or 16%, while NPAs increased $127 million, or 22%. Thank you, Michelle. Thank you. We balanced this customer optimism with an acknowledgment of the fluidity of the current economy and some concern that the recent upward trend in the infection could dampen the pace of the economic recovery. Consumer charge-offs were down to 30 basis points in Q2 demonstrating our continued strong consumer portfolio. And so our challenge with the book in general is just our view on where commodity prices are going to go. Given our strong liquidity position, we continue to actively manage down our cost of funds. PRESS RELEASE GlobeNewswire . Average total debt decreased $2.8 billion, or 21%, as short-term borrowings were repaid as a result of the strong core deposit inflows. Huntington Ingalls Industries to Host Second Quarter Earnings Conference Call and Webcast on Thursday. Now let's turn to Slide 4 to review our results in more detail. )For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Partially offsetting these items, the 2020 second quarter included a $13 million gain on the annuitization of a retiree health plan, a $5 million gain on the sale of the retirement plan services recordkeeping business, and $3 million of mezzanine losses. You can see the deferral piece of that was fairly modest to start with about 8%. 2020 Fourth Quarter highlights compared to 2019 Fourth Quarter: Net income was $316 million, consistent with the year ago quarter. And Zach, I know you said that forgiveness is not built into the forecast. ChargePoint and EVBox both have hundreds of thousands of charging stations. It was accretive to yield in the second quarter by and by as we've noted about 2 basis points of net interest margin. Average brokered deposits and negotiable CDs increased $1.2 billion, or 43%, reflecting balance growth in new and existing brokered deposit accounts. Stock Advisor launched in February of 2002. Zachary Wasserman -- Senior Executive Vice President, Chief Financial Officer. See Page 7 of Quarterly Financial Supplement for additional detail. Does that....? July 30, 2018 at 11:00 AM EDT. June 30, 2020 figures are estimated. Slide 3 provides the highlights for the 2020 second quarter. The dynamic that has seemingly contributed to a short squeeze in the stock of videogame retailer GameStop Corp. also appears to be affecting shares in a host of other heavily shorted companies. See Pages 7-9 of Quarterly Financial Supplement for additional detail. (Updates share move throughout, adds analyst’s comment and bond trading. All right, that's helpful. Revenue (TTM) 4.733B. Slide 9 illustrates the continued strength of our capital and liquidity ratios. All rights reserved. Analyst James Weston bumps this stock up from Neutral to Outperform (i.e. The process around that is the thing that's driving the most uncertainty around the timing. Fundamentals. Total noninterest income increased 5% as a result of record mortgage banking activity, though waivers to assist our customers pressured certain of our noninterest income lines. ET. Here’s what’s coming. The NIM in the 2020 second quarter was negatively impacted by approximately 3 basis points of derivative ineffectiveness compared to a benefit of approximately 4 basis points in the 2020 first quarter. We're going to take every available day we have to look at the economic condition and the forecast that we see. And we haven't disclosed the company run DFAST scenarios but certainly, there's going to be a number of factors that will go into what we've provided in our forecast versus what -- we're just running through the models. Deposit account activity volumes are increasing yet given the elevated level of consumer deposits, we do not expect a full recovery in deposit service charges. Of the 30% of the downgrades we did not attribute to COVID, most of that was in our oil and gas portfolio. Tesla shares have risen from $640.34 at the time the calls were purchased to over $890 today. This document contains GAAP financial measures and non-GAAP financial measures where management believes it to be helpful in understanding Huntington's results of operations or financial position. Finally, we always like to end with a reminder to our shareholders that there's a high level of alignment between the Board, management, our colleagues and our shareholders. This communication contains certain forward-looking statements, including, but not limited to, certain plans, expectations, goals, projections, and statements, which are not historical facts and are subject to numerous assumptions, risks, and uncertainties. Turning to Slide 5. And I think as we look across industries, we are seeing a little bit of a blip down. The decrease in average interest-bearing liability costs primarily reflected lower interest-bearing deposit costs (down 69 basis points) and lower long-term debt costs (down 133 basis points), both due to the impact of lower interest rates. Investors may also find this information helpful in their evaluation of our financial performance against published earnings per share mean estimate amounts, which typically exclude the impact of Significant Items. UK. See Pages 16-17 of Quarterly Financial Supplement for additional detail. WASHINGTON (dpa-AFX) - Huntington Bancshares Inc. (HBAN) reported a profit for second quarter that fell from last year.The company's earnings came in at $150 million, or $0.13 per share. Brock, look, what we're seeing in the market here is that it's a lack of inventory. U.S. Specifically within core deposits, average total demand deposits increased $8.3 billion, or 20%, average money market deposits increased $1.0 billion, or 4%, and average savings and other domestic deposits increased $1.0 billion, or 10%. The company is a partner with General Motors Company (NYSE: GM), Tesla Inc (NASDAQ: TSLA), Nissan, Lyft Inc (NASDAQ: LYFT) and Uber Technologies Inc (NYSE: UBER). Table 4 – Average Liabilities – Demand Deposits Drive Robust Year-over-Year Growth in Core Deposits, Other domestic deposits of $250,000 or more. Our restaurant exposures, primarily in the national quick service brands that have maintained drive up operations and our sandwich and pizza customers have been open for takeout service to offset the declines of in-house seating. The most recent DFAST results demonstrate superior credit performance for our fifth consecutive DFAST filing. I'm sorry, about 3% of the book and coming out of the deferral of payment rates are very strong. What’s Next: It's legal for members of Congress and their spouses to own stocks. Excluding the PPP loan balances, our ACL would be 2.45% as of June 30th. Pelosi’s transactions could push for more regulations concerning stock purchases by members of Congress. Here Are the Next 10 Most Shorted Small-Caps. And while overhead for energy companies is high, they still have a market for their deliverables, leading to a ready cash flow – which can be used, among other things, to pay the dividends. The call options were valued at $1.12 million as of Monday. Michelle, we will now take questions. 2020 Fourth Quarter highlights compared to 2019 Fourth Quarter: Net income was $316 million, consistent with the year ago quarter. PDF Version . COLUMBUS, Ohio – Huntington Bancshares Incorporated (Nasdaq: HBAN; www.huntington.com) reported net income for the 2020 second quarter of $150 million, a decrease of 59% from the year‐ago quarter. Total NPAs as a % of sum of loans and leases, other real estate owned, and other NPAs. One of its most prominent members made some purchases in December that could benefit from the new Biden administration. Richard Pohle -- Executive Vice President, Chief Credit Officer. Compared to the 2020 first quarter, total noninterest income increased $30 million, or 8%. Jon, this is probably the last quarter we're going to distinguish ourselves with reporting out the oil and gas like this because we believe we've got it boxed now fully reserved. In the old days, starting in 1994 with Bill Bengen’s seminal study, financial advisers estimated how long your portfolio might last using historical returns and a safe withdrawal rate. Our hedging actions continue to reduce the unfavorable impacts of interest rate volatility and the lower interest rate environment. We do not currently expect to repurchase common shares during the 2020 third quarter; however, the Board has authorized the repurchase of common shares during the 2020 third quarter to offset compensation plan-related share issuances as permitted by the Federal Reserve Board. While we are maintaining only a 25% risk of recession over the next 6–12 months currently, we want to have a balanced approach to portfolios given that GDP and earnings estimates for this year are currently moving lower. In the electric vehicle charging market, EVgo competes with Blink Charging (NASDAQ: BLNK), Electrify America, which is owned by Volkswagen (OTC: VWAGY) and ChargePoint, which is merging with SPAC Switchback Energy Acquisition Corp (NYSE: SBE). Mortgage banking income increased $38 million, or 66%, primarily reflecting a 72% increase in salable mortgage originations and higher secondary marketing spreads. And what we've seen in our own portfolio was around 70% we estimate on the consumer side of the government stimulus and some of the unemployment benefits are being saved in accounts and that's only taking down single-digit percentage points per month as we go forward. The regulatory Tier 1 risk-based capital ratio was 11.79% compared to 11.28% at June 30, 2019. The auto floorplan business is actually bouncing back in very good shape. Benzinga does not provide investment advice. Average earning assets increased $9.9 billion or 10% compared to the year ago quarter. Our business model balanced between commercial and consumer provides diversification of revenue where good performance is offsetting challenges. I see a 2.45% ACL in relatively 10 credit metrics. Earnings per common share for the 2020 second quarter were $0.13, down 61% from the year‐ago quarter. Let me now turn it over to Steve for opening remarks. Net income for the 2020 fourth quarter was $316 million, consistent with the year-ago quarter. Shares of Huntington Bancshares (NASDAQ:HBAN) fell 0.1% in pre-market trading after the company reported Q4 results. The regulatory Tier 1 risk-based capital and total risk-based capital ratios also reflect the issuance of $500 million of Series F preferred stock in the 2020 second quarter. Our underlying NIM performed quite well despite the challenging interest rate environment. A... | … Huntington Reports Record Second-Quarter Net Income. All forward-looking statements speak only as of the date they are made and are based on information available at that time. Common equity tier 1 risk-based capital ratio, Regulatory Tier 1 risk-based capital ratio, Regulatory Total risk-based capital ratio, http://www.prnewswire.com/news-releases/huntington-bancshares-incorporated-reports-2020-second-quarter-earnings-301098536.html, Stock market news live updates: Stocks fall as traders await Fed decision, Boeing slides after quarterly results, S&P 500 Drops the Most Since October; Dollar Rises: Markets Wrap, Navistar to collaborate with GM, others on hydrogen fuel-cell commercial trucks, WRAPUP 1-U.S. core capital goods orders rise in boost to business investment, Naspers Looking at Easing Dominance on Johannesburg Bourse, Gamestop, memestocks, and the revenge of the retail trader, AMD Gets Price Target Boosts From Analysts After Earnings Beat, 'Fighting 100 mini Mike Tysons': The powerful influence of Reddit trade. The results did not meet Wall Street expectations. Soccer. Welcome. EVgo is the leader in DCFC trailing only Tesla by the number of locations with fast charging stations. Thanks. There is very -- the demand notwithstanding the fact that new car inventories are down, June results were very strong across our dealer book. Amounts are presented on a Basel III standardized approach basis for calculating risk-weighted assets. ", "Yesterday, the Board declared the third quarter cash dividend of $0.15 per common share, unchanged from the prior quarter. Total revenue was relatively flat versus the year ago quarter as pressure on spread revenues was nearly offset by growth in fee income. U.S. consumer retail sales rose 7.5% in June as businesses have resumed operations. All rights reserved. Huntington Bancshares Incorporated To Announce 2020 Second Quarter Earnings And Hold Earnings Conference Call July 23, 2020 PR Newswire COLUMBUS, Ohio, June 23, And so, similar to what we did in Q2, we will do the same process in Q3. Our portfolio composition evenly split between consumer and commercial businesses gives us diversification in periods of economic stress and our DFAST numbers reflect as much. Other noninterest income increased $20 million, or 65%, primarily reflecting a $13 million gain on the annuitization of a retiree health plan, a $5 million gain on the sale of the retirement plan services recordkeeping business, and a $3 million increase in income on terminated leases, which was offset by $3 million of mezzanine losses. This document can be found on the Investor Relations section of Huntington's website, http://www.huntington.com. The funds provided from these loans and inflows from government stimulus programs were key drivers of average core deposit growth of 13%. Let me turn it over now to Rich to cover credit. There were some downgrades within that book as you might expect but nothing significant. (To watch Jenkins’ track record, click here) Backing his stance, Jenkins writes, “Given the number of 'boxes' that the story for MPLX can check, it's no surprise that it's been a debate stock. See Pages 10-11 of Quarterly Financial Supplement for additional detail. Greetings and welcome to the Huntington Bancshares Fourth Quarter 2020 Earnings Conference Call. All of this allowed DCP to maintain its dividend at 39 cents per share. We got here 92% paying has increased coming out of the deferrals. So we've seen -- it's like a roughly 2% year-over-year reduction in the last week versus the prior 10 days. Slide 12 shows our NPAs and TDRs and demonstrates the impact that our oil and gas portfolio has had on our overall level of NPAs. I mean to the extent that there is further deterioration or improvement either way in the portfolio that gets reflected in the modeled outputs for what would go into Q3. "To aid small- and medium-sized businesses across our footprint, we funded more than 37,000 loans with a total volume of more than $6 billion through the SBA's Paycheck Protection Program (PPP), and we continue to originate more PPP loans. Common Equity Tier 1 (CET1) risk-based capital ratio of 9.84%, down from 9.88% and consistent with our 9% to 10% operating guideline. I think, we're really just focused on the portfolio we have now and managing the risk there. )For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. For a complete discussion of risks and uncertainties, please refer to this slide and material filed with the SEC, including our most recent Forms 10-K, 10-Q and 8-K filings. The call may be accessed via a live Internet webcast at the Investor Relations section of Huntington's website, www.huntington.com, or through a dial-in telephone number at (877) 407-8029; Conference ID #13704964. It has also spurred calls for a Securities and Exchange Commission investigation, though legal experts say it’s difficult to prove chat-room posts are part of an illicit scheme to manipulate the market.Burry’s warning has so far done little to dampen retail investors’ enthusiasm: GameStop rose another 45% in pre-market trading as of 8:38 a.m. in New York, though it had more than doubled in overnight trading.How ‘Flows Before Pros’ Is Disrupting Stock Markets: QuickTake(Updates pre-market trading in final paragraph. Huntington's deal to acquire the Detroit-based TCF is set to close in the second quarter of this year. The tangible common equity ratio or TCE ended the quarter at 7.28% down 52 basis points from a year ago. Tangible book value per common share as of 2020 second quarter-end was $8.32 , a 4% year-over-year increase. We saw utilization of online account opening channels increase 13% quarter-over-quarter and 61% year-over-year. In the last reported quarter, its earnings missed the Zacks Consensus Estimate. The common stock cash dividend is payable April 1, 2021, to shareholders of record on March … It went up by about 5% to 6% really due to fallen angel activity, more than anything as it relates to new originations. Net charge-offs (NCOs) increased $59 million to $107 million. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. We will also have another quarter of portfolio activity to see how the portfolio is behaving relative to our expectations and based on those two factors, we'll look at where the think the provision ought to be. 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