Profile: Huntington Bancshares Inc (HBANP.OQ)
28 Jan 2015
Huntington Bancshares Incorporated (Huntington), incorporated on April 14, 1966, is a multi-state diversified regional bank holding company. Through its subsidiaries, including its bank subsidiary, The Huntington National Bank (the Bank), Huntington is engaged in providing full-service commercial, small business, consumer banking services, mortgage banking services, automobile financing, equipment leasing, investment management, trust services, brokerage services, customized insurance programs, and other financial products and services. The Company operates in four segments: Retail and Business Banking , Regional and Commercial Banking, Automobile Finance and Commercial Real Estate and Wealth Advisors, Government Finance, and Home Lending . At December 31, 2011, the Bank had 652 branches, which included 376 branches in Ohio, 123 branches in Michigan, 58 branches in Pennsylvania, 51 branches in Indiana, 31 branches in West Virginia and 13 branches in Kentucky. A Treasury/Other function includes its insurance brokerage business, which specializes in commercial property and casualty, employee benefits, personal lines, life and disability and specialty lines of insurance. The Bank also provides brokerage and agency services for residential and commercial title insurance and excess and surplus product lines of insurance. In March 2014, the Company announced that it has completed its merger of Camco Financial Corp., parent company of Advantage Bank, based in Cambridge, Ohio.
At December 31, 2011, its loans and leases totaled $38.9 billion. Commercial and Industrial (C&I) loans are made to commercial customers for use in business operations to finance working capital needs, equipment purchases, or other projects. Commercial Real Estate (CRE) loans consist of loans for income-producing real estate properties, real estate investment trusts, and real estate developers. These loans are made to finance properties, such as apartment buildings, office and industrial buildings, and retail shopping centers, and are repaid through cash flows related to the operation, sale, or refinance of the property. Construction CRE loans are loans to individuals, companies, or developers used for the construction of a commercial or residential property for which repayment will be generated by the sale or permanent financing of the property. Its construction CRE portfolio primarily consists of retail, residential (land, single family, and condominiums), office, and warehouse project types. These loans are for construction projects that have been presold, preleased, or have secured permanent financing, as well as loans to real estate companies with equity invested in each project. These loans are underwritten and managed by a specialized real estate lending group that actively monitors the construction phase and manages the loan disbursements according to the predetermined construction schedule. Total consumer loans were $18.4 billion at December 31, 2011. Automobile loans and leases are primarily consist of loans made through automotive dealerships and include exposure in selected states outside of its primary banking markets. Home equity lending includes both home equity loans and lines-of-credit. Residential mortgages represent loans to consumers for the purchase or refinance of a residence. These loans are generally financed over a 15-year to 30-year term, and in most cases, are extended to borrowers to finance their primary residence. Its practice is to sell a portion of its fixed-rate originations in the secondary market. As such, at December 31, 2011, 50% of its total residential mortgage portfolio were Adjustable Rate Mortgages (ARMs). These ARMs primarily consist of a fixed-rate of interest for the first 3 to 5 years, and then adjust annually. Primarily consists of consumer loans not secured by real estate, including personal unsecured loans.
Retail and Business Banking
The segment provides financial products and services to consumer and small business customers located within our primary banking markets consisting of five areas covering the six states of Ohio, Michigan, Pennsylvania, Indiana, West Virginia, and Kentucky. Its products include individual and small business checking accounts, savings accounts, money market accounts, certificates of deposit, consumer loans, and small business loans and leases. Other financial services available to consumers and small business customers include investments, insurance services, interest rate risk protection products, foreign exchange hedging, and treasury management services. Retail and Business Banking provides these services through a banking network of over 600 traditional branches and convenience branches located in grocery stores. In addition, alternative distribution channels are available to customers, including Internet and mobile banking, telephone banking, and over 1,300 automated teller machines (ATMs).
Regional and Commercial Banking
The segment provides an array of products and services to the middle market and corporate client base located primarily within its core geographic banking markets. Products and services are delivered through a relationship banking model and include commercial lending, as well as depository and liquidity management products. Dedicated teams collaborate with its primary bankers to deliver complex and customized treasury management solutions, equipment and technology leasing, international services, capital markets services, such as interest rate risk protection products, foreign exchange hedging and sales, trading of securities, mezzanine investment capabilities, and employee benefit programs ( insurance, 401(k)). The Commercial Banking team specializes in serving a number of industry segments, such as government entities, not-for-profit organizations, health-care entities, and publicly traded companies. At December 31, 2011, commercial loans totaled $20.5 billion.
Automobile Finance and Commercial Real Estate
The segment provides lending and other banking products and services to customers outside of its normal retail or commercial channels. More specifically, it serves automotive dealerships, retail customers who obtain financing at the dealerships, professional real estate developers, real estate investment trusts (REITs), and other customers with lending needs that are secured by commercial properties. Most of its customers are located in its primary banking markets. Its products and services include financing for the purchase of automobiles by customers of automotive dealerships; financing for the purchase of new and used vehicle inventory by automotive dealerships, and financing for land, buildings, and other commercial real estate owned or constructed by real estate developers, automobile dealerships, or other customers with real estate project financing needs. The Company also provides other banking products and services to its customers, as well as their owners or principals.
Wealth Advisors, Government Finance, and Home Lending
The segment provides wealth management banking services to high-net-worth customers in its primary banking markets and in Florida by utilizing a cohesive model that employs a unified sales force to deliver products and services directly and through the other segments. It provides these products and services through a sales team, which consists of former private bankers, trust officers, and investment advisors; Huntington Asset Advisors, which provides investment management services; Huntington Asset Services, which offers administrative and operational support to fund complexes, and retirement plan services. The Bank also provides banking products and services to government entities across its primary banking markets by utilizing a team of relationship managers providing public finance, brokerage, trust, lending, and treasury management services. It originates and services consumer loans to customers who are located in its primary banking markets. Consumer lending products are distributed to these customers primarily through the Retail and Business Banking segment and commissioned loan originators.
Huntington Bancshares Inc
HUNTINGTON CTR, 41 S HIGH ST HC0
COLUMBUS OH 43287