COLUMBUS, Ohio (AP) -- Huntington Bancshares Inc.'s net income soared 22 percent in the first quarter as its mortgage banking business generated much more revenue.
The regional bank, based in Columbus, Ohio, said Wednesday that its purchase of a troubled Michigan bank also boosted its profit in the three months ended March 31.
Huntington's net income rose in the first quarter to $145.2 million, or 17 cents per share, from $118.7 million, or 14 cents per share, in the same period a year earlier.
Revenue rose 9 percent, to $706.5 million from $645.2 million in the same period a year earlier.
Noninterest income, which includes fees, service charges, insurance income and auto lease income, rose 20 percent, to $285.3 million from $236.9 million a year earlier. Most of the gain came from higher mortgage banking income and revenue from the sale of loans.
Included in the noninterest income was an $11.4 million gain on Huntington's government-assisted purchase of Fidelity Bank, based in Dearborn, Mich.
Net interest income, which consists mainly of income from interest payments on loans, fell 5 percent, to $479.9 million from $501.9 million a year earlier.
The results were better than Wall Street had expected. Analysts surveyed by FactSet expected earnings of 14 cents per share on revenue of $658.4 million. Huntington's stock rose in midday trading.
bank expects interest income to rise modestly during the next three quarters, with loans and low-cost deposits continuing to grow. However, Huntington expects to be squeezed later this year by lower income on lending as it shifts to safer loans.
In announcing its results Wednesday, the bank said its board had declared a quarterly dividend of 4 cents per common share, in line with its dividends for the previous two quarters.
Huntington is a regional bank holding company with $56 billion in assets.
Huntington operates in six states in the Midwest and mid-Atlantic. It has 660 branches and over 1,300 ATMs. It also provides auto financing through car dealers.
Huntington shares rose 8 cents, or 1.2 percent, to $6.42 in early afternoon trading.