Huntington 3rd-quarter profit shrinks on COVID-19
The pandemic dragged down Huntington Bancshares' bottom line over the summer.
The Columbus-based bank said Thursday that its profit for the July 1Sept. 30 quarter slid 19% from the same period in 2019 to $303 million, or 27 cents per share. The bank set aside more money to cover potential loan losses and incurred expenses for closing offices, higher pay and job cuts it put in place.
Despite the drop in profit, the results beat analyst estimates by 2 cents per share, and Huntington shares were up about 6% in mid-day trading Thursday.
Even with the pandemic, the bank was able to generate more revenue during the quarter and the bank's top executive, Steve Steinour, said the economy is showing signs of improving.
Loans grew by 7% over the past year and the bank said its loan pipeline is stronger in October than it was a year ago. Home and auto lending have been strong as has lending to auto dealers, he said.
“We're trying to be cautious, conservative given the uncertainties,” said Steinour, the bank's chairman, president and CEO.
While profit was down, revenue rose 5% from the year-ago quarter to $1.25 billion.
“This has been a great quarter for us,” he said. “It reflects our customers seeking to do business with us.”
Still, the company is taking steps to make sure the bank is positioned to withstand the coronavirus and to help customers, especially small businesses, get through the rough times.
This week, the bank launched a $25 million lending program geared toward small businesses owned by minorities, women and veterans who that can now get loans for as little as $1,000. It also now gives businesses 24 hours to cover an overdraft before imposing a fee as it has for consumers for years.
Steinour said he remains worried about diners, hotels, travel and tourism, and other industries that have been hit particularly hard by the pandemic.
“They need help. They're used to a certain level of traffic,” he said. “We need to be supportive. We have very good capital.” mawilliams@dispatch.com @Bizmarkwilliams