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Jun 30, 2020
Huntington Q2 2020 Earnings Report
Huntington reported net income decrease of 59% year-over-year, driven by record mortgage banking income.
Key Takeaways
Huntington Bancshares Incorporated reported a net income of $150 million for the second quarter of 2020, a decrease of 59% compared to the previous year. The results were impacted by elevated credit provisioning due to the uncertain economic outlook, but were supported by strong mortgage banking income.
Net income decreased 59% year-over-year to $150 million.
Earnings per share decreased 61% year-over-year to $0.13.
Total noninterest income increased 5% due to record mortgage banking activity.
Average core deposits increased 13%, driven by PPP loans and government stimulus programs.
Huntington
Huntington
Forward Guidance
Huntington expects third quarter revenue to increase approximately 2% from the second quarter of 2020.The 2020 third quarter NIM is expected to expand approximately 7 to 10 basis points on a linked quarter basis. Third quarter noninterest expense is expected to increase approximately 5% compared to the 2020 second quarter.
Positive Outlook
- Third quarter revenue is expected to increase approximately 2% from the 2020 second quarter.
- The 2020 third quarter NIM is expected to expand approximately 7 to 10 basis points on a linked quarter basis.
- Third quarter noninterest expense is expected to increase approximately 5% compared to the 2020 second quarter.
- Average loans and leases are expected to remain relatively unchanged on a linked quarter basis.
- Average total deposits are expected to decrease approximately 1% compared to the 2020 second quarter.
Challenges Ahead
- Asset quality metrics are expected to continue to be impacted by the challenged economic outlook.
- Net charge-offs are expected to be near 65 basis points in the 2020 third quarter, impacted by the oil & gas portfolio and broader economic considerations.