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Bank reports $39.7M income
Huntington had a $2.43M loss in the same period last year
By GRACE WYLER
Huntington Bancshares returned to profitability in the first quarter of 2010, after suffering heavy losses last year as a result of the credit crisis.
Huntington, the third-largest Ohio bank, recorded a net income of $39.7 million in the first quarter, compared with a net loss of $2.43 million for the same period last year.
The Columbus-based bank, which has not seen a quarterly profit since 2008, exceeded market expectations.
The bank accepted $1.4 billion from the Troubled Asset Relief Program last year.
“This is really a reset moment for us,” chief executive Stephen Steinour said Wednesday in a press-conference call. “We are a year ahead of where analysts thought we would be.”
Credit trends continued to improve in the first quarter.
The bank saw a 52 percent decline in new nonperforming assets, the lowest level since the third quarter of 2008.
“This quarter showed continued improvement in credit-quality trends and confirms our expectation that 2009 would represent the high watermark for credit-related problems,” Steinour said.
Total loans declined slightly in the quarter, as many consumers reduce their leverage positions, Steinour said. The bank expects that consumer loans will remain flat but may increase slightly.
Steinour said he expects the bank will continue to be profitable this year.
“Our balance sheet and liquidity positions are strong,” Steinour said. “We expect to report a profit for full year 2010.”