Huntington Bancshares Incorporated (NASDAQ:HBAN) has filed its financial results for the 3Q2016, reporting a net income of $127 million, 17% below that from a year ago. The company stated that this was mainly due to FirstMerit acquisition related expenditures, during the quarter. These expenses had amounted to a total of $159 million, before tax. It should be noted here that HBAN was successful in improving its revenue by 24%, on a year-over-year basis.
The CEO of the company, Steve Steinour, commented on the acquisition, stating that it has improved the return profile of the company. He further stated that the core fundamental performance had been solid, for the 3Q2016 and acquisition related expenses were in line with the management’s guidance. The CEO further reaffirmed their commitment towards developing customer centric strategies, while improving operating efficiency and expanding towards new regions.
Mr. Steinour also revealed that they were integrating different parts of their business, to operate as a single extended entity. The workforce training and on-boarding has successfully been completed, in this regard, with a complete focus on customer retention and experience. He claimed that the system conversions would be completed by the 1Q2017, which would result in annual cost savings of $255 million. The CEO concluded by announcing that HBAN had been recognized as one of the Best Banks in America, for 2016-17, by MONEY Magazine.
In addition to this, the company’s board of directors has decided to declare a quarterly cash dividend of $0.08 per share, a 14% increase on a quarter-over-quarter basis. Huntington has stated that it would issue the dividend on January 2, 2017, to shareholders of record, as of December 20, 2016. Moreover, a quarterly dividend has also been declared for four series of preferred stock of HBAN. The holders of series A preferred convertible stock would be awarded $21.25 per share, while those of series B would receive $8.95 per share. The holders of series C and D preferred stock would be granted $14.69 and $15.625 per share.
Huntington Bancshares Incorporated (NASDAQ:HBAN) closed at a share price of $10.7, at the end of the October 26 trading session, 5% higher than the day before, on a trade volume of 28.69 million.