Huntington Bancshares (HBAN) Misses Q4 EPS by 3c

Huntington Bancshares (NASDAQ: HBAN) reported Q4 EPS of $0.28, $0.03 worse than the analyst estimate of $0.31. Revenue for the quarter came in at $1.16 billion versus the consensus estimate of $1.17 billion.

2019 Fourth Quarter highlights compared with 2018 Fourth Quarter:

• Fully-taxable equivalent total revenue decreased $12 million, or 1%.
• Fully-taxable equivalent net interest income decreased $55 million, or 7%.
• Net interest margin decreased 29 basis points to 3.12%.
• Noninterest income increased $43 million, or 13%.
• Noninterest expense decreased $10 million, or 1%.
• Average loans and leases increased $1.3 billion, or 2%, including a $0.7 billion, or 2%, increase in commercial loans and a $0.6 billion, or 2%, increase in consumer loans.
• Average core deposits increased $0.6 billion, or 1%.
• NCOs equated to 0.39% of average loans and leases, up from 0.27%
• Repurchased $196 million of common stock (13.1 million shares at an average price of $14.96 per share).
• In December, Huntington announced the planned consolidation of 30 in-store branches. While the majority of the expense of these actions was included in the 2019 fourth quarter, the consolidations are expected to be completed in the 2020 first quarter.

Expectations – 2020

• Full-year revenue is expected to increase approximately 1.5% to 3.5%. Full-year noninterest expense is expected to increase approximately 1% to 3%.
• Average loans and leases are expected to increase approximately 3% to 4% on an annual basis. Average total deposits are expected to increase approximately 3% to 4% on an annual basis.
• Asset quality metrics are expected to remain strong, with net charge-offs in the range of approximately 35 to 45 basis points, with some moderate quarterly volatility.
• The effective tax rate for 2020 is expected to be in the range of 15.5% to 16.5%.

For earnings history and earnings-related data on Huntington Bancshares (HBAN) click here.

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