On Aug 7, 2014, we issued an updated research report on
Huntington Bancshares Incorporated
). This commercial and consumer banking services provider recently
reported impressive second-quarter 2014 results, driven by strong
Huntington reported second-quarter 2014 earnings of 19 cents per
share, beating the Zacks Consensus Estimate by a penny. Moreover,
prior-year quarter earnings were outpaced by 11.76%.
Results were aided by top-line growth. Further, loan and deposit
balances exhibited growth. However, the quarter witnessed higher
expenses. With the improvement in the economy of the Midwest
region, management expects overall growth in business in the
upcoming quarters, though it remains cautious owing to
uncertainties in the broader economy.
The company is focused on acquiring the industry's best deposit
franchise. Despite the overall sluggish economic environment,
Huntington's total deposits rose 5% year over year, while total
loan balance increased 10% over the same time period in
second-quarter 2014, primarily driven by increased lending activity
in its construction and automobile sector. Therefore, both loan and
deposit balances are poised to grow in an improving economy.
Given its robust liquidity position, Huntington is well positioned
to expand via acquisitions. In 2014, Huntington completed the
acquisition of Camco Financial and is set to strengthen its
Michigan branch network by acquiring 24 branches in Michigan from
Bank of America Corp. We believe that such efforts will help the
company gain market share significantly and thereby enhance its
profitability in the long run.
Following second-quarter 2014 results, the Zacks Consensus Estimate
over the past 30 days rose around 2.8% to 74 cents per share for
2014. Also, for 2015 it increased about 2.6% to 79 cents per share,
over the same time frame. Hence, Huntington currently carries a
Zacks Rank #2 (Buy).
Key Picks from the Sector
Other Midwest banks worth considering include German American
Bancorp Inc. (
), First Business Financial Services, Inc. (
) and MidWest One Financial Group, Inc. (
). All three carry a Zacks Rank #2.
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HUNTINGTON BANC (HBAN): Free Stock Analysis
FIRST BUS FINL (FBIZ): Free Stock Analysis
GERMAN AMER BCP (GABC): Free Stock Analysis
MIDWESTONE FINL (MOFG): Free Stock Analysis
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