Huntington Bancshares Inc. said Thursday its net income increased six percent during the third quarter, while BB&T said a one-time tax charge caused its quarterly profit to tumble 43 percent.
Huntington, the Columbus, Ohio-based parent company of Huntington National Bank, reported third quarter net income of $178 million. That represented an increase of $11 million, or 6 percent, from the same quarter one year ago and $28 million, or 8 percent, more than the previous quarter this year.
On a per-share basis, the company reported earnings of 20 cents a share during the quarter, which was three cents greater than average expectations of analysts polled by Thomson Reuters
"The third quarter was a time of continuing household growth, particularly within our in-store branches, and marked a return to stability of our commercial real estate loan portfolio," company president Stephen Steinour said.
Chad Prather, director of commercial banking for Huntington's West Virginia region, said the company saw an increase in activity in almost all areas of commercial and personal banking during the quarter.
"We have had growth in all areas, except in mortgage banking," Prather said. "Overall mortgage volume only area that's down, but other areas showing robust growth."
Prather said the bank saw a drop in mortgage refinancing activity in late June and early July, when interest rates jumped on expectations that the Federal Reserve would begin tightening its easy money policies later this year.
Huntington investor relations director Mark Muth said the refinancing market had been booming in previous quarters and company analysts expected that rate to fall back to historically normal levels by then end of the year.
Muth said the summer rate spike brought activity back down to normal in the third quarter instead.
"It's still in-line with our expectations, it just happened a little bit quicker than we thought," he said.