Huntington Bancshares in Columbus, Ohio, reported higher quarterly in profit that reflected higher in mortgage banking fees and steady loan growth.
The $62.6 billion-asset company reported Thursday that its second-quarter net income rose 19% from a year earlier, to $196.2 million. Earnings per share of 23 cents beat the average estimate of analysts polled by Bloomberg by 2 cents.
Higher fees drove the results. Noninterest income increased by 13%, to $282 million. Mortgage banking revenue jumped by 70%, to $38.5 million, while gains on the sale of loans more than tripled, to $12.5 million. Income from service charges, brokerage income and trust services declined.
Net interest income rose 7%, to $491 million. Total loans increased by 6%, to $47.9 billion, while the net interest margin compressed by 8 basis points, to 3.2%.
Credit trends were mixed. Nonperforming assets rose by 9%, to $396 million, but the loan-loss provision fell by 31%, to $20.4 million.
Noninterest expenses increased by 7%, to $492 million, mostly from equipment expenses tied to the company's technology financing business.
