COLUMBUS, Ohio - Huntington Bancshares Incorporated (NASDAQ:HBAN) disclosed a decline in its fourth-quarter earnings, with a reported net income of $243M, or $0.15 per common share. This figure represents a decrease from the $0.27 per share reported in the same quarter of the previous year. The bank attributed the lower earnings to several factors, including a special FDIC Deposit Insurance Fund assessment and a mark-to-market adjustment on its hedging program, which together reduced pre-tax income by $74M.
Despite the drop in net income, Huntington saw an increase in average total deposits and loans compared to both the previous quarter and the same period last year. Average total deposits rose by $1.5B, while average total loans and leases saw an increase of $445M from the prior quarter. The bank's capital position also strengthened, with the Common Equity Tier 1 (CET1) risk-based capital ratio rising to 10.25%.
The bank completed a synthetic Credit Risk Transfer transaction in the fourth quarter, which involved a $3B portfolio of prime indirect auto loans. This strategic move reduced risk-weighted assets by approximately $2.4B, optimizing the company's capital.
Huntington's chairman, president, and CEO, Steve Steinour, expressed confidence in the company's position, citing robust liquidity and capital that supports their growth strategy and customer service focus. Steinour highlighted the bank's disciplined approach to managing credit quality and its readiness to seize growth opportunities in the coming year.
The bank's full earnings materials, including the detailed earnings press release and quarterly financial supplement, are available on the Investor Relations section of Huntington's website. This information is based on a press release statement from Huntington Bancshares Incorporated.
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