Huntington Bancshares Inc.'s (HBAN) first-quarter profit more than tripled and adjusted earnings topped analysts' estimates as it slashed credit-loss provisions and revenue edged up.
The Ohio regional bank, like many peers, has improved its bottom line lately by lowering its loan-loss reserves amid signs of better credit quality. It has also seen revenue grow.
Huntington posted a profit of $126.4 million, or 14 cents a share, up from $39.7 million, or a penny a share, a year earlier. Additional litigation reserves cut the latest result by a penny. The number of shares outstanding rose 21%. Revenue edged up 1% to $641.3 and was up 1.3% on a fully taxable equivalent basis.
Analysts had expected a per-share profit of 12 cents on $664 million in revenue, according to a Thomson Reuters poll.
Credit-loss provisions were $49.4 million, down from $235 million a year earlier and $87 million in the prior quarter.
Net charge-offs, or loans lenders don't think are collectible, fell to 1.73% of average loans from 2.58% and 1.82%, respectively. The nonperforming asset ratio fell to 1.8% from 5.17% and 2.21%.
Shares closed Tuesday at $6.44 and were inactive in recent premarket trading.
-By Matt Jarzemsky, Dow Jones Newswires; 212-416-2240; email@example.com