Huntington Bancshares

Huntington Bancshares, Inc.
Public
Traded as NASDAQ: HBAN
S&P 500 Component
Industry Finance and Insurance
Founded 1866,[1][2] P.W. Huntington[1][2]
Headquarters Columbus, Ohio[1][2]
Key people
 Stephen D. Steinour, Chairman, President and CEO (2009)[1]
Products Banking[1]
Revenue 2,950,849,000 (2011)[1]
Total assets $72.64 billion (May 2016)[3]
Number of employees
 14,511 [1]
Website www.huntington.com

Huntington Bancshares, Inc. is an American bank holding company headquartered in Columbus, Ohio. As of June 2016, the company had $74 billion in assets, making it the 32nd largest bank holding company in the country.[4] The company is a component of the S&P 500. It was ranked number 610 on the 2008 Fortune 1000.[5]

The company's banking affiliate, The Huntington National Bank, provides retail and commercial financial services in Indiana, Kentucky, Michigan, Ohio, Pennsylvania, and West Virginia; its 2016 acquisition of FirstMerit Corporation expands its presence into Illinois and Wisconsin. Huntington also provides retail services online.

There also are selected financial service activities in other states, including offices in Florida, Cayman Islands, and Hong Kong.[1] Huntington also maintained retail banking offices in Florida until 2002, when it sold them to SunTrust Banks to focus on its core Midwestern operations.[6]

History

Founding

The Huntington National Bank Building (foreground, 1926) and the Huntington Center (background, 1984) in downtown Columbus, Ohio

P. W. Huntington formed P. W. Huntington & Company in 1866.[2] Huntington built its first 5-story building in 1878. Four out of five sons of P. W. would become partners during the 1890s and early 1900s. The bank was incorporated in 1905 as The Huntington National Bank of Columbus.[7] Huntington died in 1918 shortly after turning the bank over to his sons.[8] Francis Huntington became president and provided active leadership for 14 years.[9] In 1915, the bank receives limited trust powers.[10] In 1922, the bank received full trust powers from the Federal Reserve System.[10] In 1923, Huntington purchased Columbus-based the State Savings Bank & Trust Company and the Hayden-Clinton National Bank of Columbus, thus swelling its capital base considerably. In 1958, Huntington acquired the Columbus-based The Market Exchange Bank Company. In 1962, Huntington acquired both First National Bank of Grove City and The People's Bank of Canal Winchester.[10] In 1963, Huntington acquired both The Columbus Savings Bank and the Columbus-based The Northern Savings Bank.[10] In 1966, Huntington Bancshares Incorporated (HBI) was established as a bank holding company. In 1967, Huntington Bancshares acquired the Washington Court House-based The Washington Savings Bank. In 1969, Huntington Bancshares acquired the Ashland-based Farmers Bank.[10] In 1970, Huntington Bancshares acquired the Bowling Green-based The Bank of Wood County Company, the Toledo-based The Lucas County State Bank, and Lagonda National Bank of Springfield. In 1971, Huntington Bancshares acquired First National Bank & Trust Company of Lima, The Woodville State Bank, and the Kent-based The Portage National Bank. In 1972, Huntington Bancshares acquired The First National Bank of Wadsworth and The First National Bank of Kenton also establishing the first ever 24-hour, fully automated banking office.[10] In 1973, Alger Savings Bank merged into an affiliate in Kenton, Ohio. In 1976, The Huntington Mortgage Company formed as a subsidiary of Huntington Bancshares with The Pickerington Bank being merged into the bank. In 1977, Huntington Bancshares acquired The Bellefontaine National Bank, The Central National Bank of London, and Columbus-based The Franklin National Bank. In 1979, a loan production office opened in Dayton, Ohio.[10]

The company's "honeycomb" logo was unveiled in 1975 and has remained the company's trademark since that time.[11]

1980–present

McKinley Monument and Huntington Building in May 2009

In 1980, Farmers & Merchants Bank, Milford Center and The First National Bank of Burton were merged with Huntington Bancshares.[10] In 1981, Huntington Bancshares announced it would acquire Alexandria Bank Company and renaming it, The Huntington State Bank with a loan production office opening in Cincinnati, Ohio. In 1982, Huntington Bacshares merged with the Reeves Banking and Trust Company.[10] Huntington acquired the tiny Savings Bank of Chillicothe, Ohio in the early 1980s, which gained some fame in 2011 when 100-year-old June Gregg revealed to Huntington officials that her father had opened a savings account for her as a baby with Savings Bank in 1913 and that she had subsequently kept the account open to the present day. Huntington officials, after doing research on the account in question, later confirmed it and gave her account a temporary increase in her interest rate to 5% as a centenarian present for her 98-year loyalty to Huntington and the Chillicothe branch's predecessor, Savings Bank.[12][13] In 1983, Huntington announced it would acquire Cleveland-based Union Commerce Bank.[14]

Huntington also had retail banking offices in Florida until 2002, when it sold these branches to SunTrust Banks to focus on its core Midwestern operations.[6] On January 27, 2004, Huntington Bancshares announced it would buy Unizan Financial Corp. based in Canton, Ohio.[15]

On December 20, 2006, Huntington Bancshares announced it would buy Sky Financial Group Inc. based in Bowling Green, Ohio.[16][17] This merger completed on July 1, 2007, although Sky branches did not change their branding until late September.[18][19] Huntington boosted its presence in Indiana and Ohio with the purchase and expanded into Western Pennsylvania for the first time.

Huntington formerly owned ATM's installed at locations of Pittsburgh-based restaurant chain Eat'n Park.[20] These are now operated by third-party ATM providers. In 2009, Huntington bid against rival Fifth Third Bank to acquire National City branches in the Pittsburgh region from PNC Financial Services. The Justice Department ordered PNC to sell the branches to avoid anti-trust concerns after it acquired National City. Huntington, which had entered the Pittsburgh market by way of the Sky acquisition, has been expanding in that market, and had considered the National City branches as a way to expand its market share.[21] Ultimately, PNC sold the overlapping branches to First Niagara Bank.[22] Huntington remains number 8 in deposits in Allegheny County, but has a stronger market share in neighboring counties.

On October 3, 2009, the Federal Deposit Insurance Corporation named Huntington as receiver of a $400 million deposit portfolio from the bank failure of Warren Bank in Warren, Michigan.[23] On December 18, 2009, Huntington signed a 45-day lease with the FDIC to run a bridge bank for the failed Citizens State Bank in New Baltimore, Michigan. In 2012, Huntington was in merger discussions with Flint, Michigan-based Citizens Republic Bancorp. Discussions stalled and FirstMerit -which would itself be acquired four years later by Huntington- purchased Citizens Republic in September 2012.[24] On October 10, 2013, Huntington announced it would acquire Ohio-based Camco Financial, holding company for Advantage Bank;[25] the merger was completed by March.[26] In April 2014, Huntington announced it would acquire 11 offices of Bank of America in Central Michigan, including the Port Huron and Saginaw markets. This raised the number of Huntington branches in Michigan to 173, including over 40 locations housed in Meijer stores.[27] The following month, Huntington bought 13 additional offices from Bank of America in Michigan, mostly in the Flint market. The locations became Huntington branches in September.[28] In 2015, Huntington Bancshares announced it would acquire Michigan-based Macquarie Equipment Finance, Inc. from Sydney, Australia-based Macquarie Group Ltd.. The transaction was completed on March 31, 2015.[29]

In January 2016, Huntington announced it would purchase Akron-based FirstMerit, subject to regulatory approval, in a deal that would make Huntington the largest bank in Ohio.[30] Due to anti-trust concerns by the Justice Department, 11 branches in Canton and two in Ashtabula were to be sold to First Commonwealth Bank.[31] Additionally 107 branches located within 2.5 miles of other Huntington / FirstMerit branches will be closed.[32] All remaining FirstMerit branches and accounts will be converted to Huntington on February 2017 over the President's Day weekend. [33] The deal made Huntington the largest bank in Ohio and briefly the 2nd largest Ohio-based bank after Fifth Third Bank until KeyCorp completed its acquisition of First Niagara Bank later in 2016; it also raised Huntington to number 2 in deposits in Cleveland behind KeyCorp, number one in Akron, Canton & Toledo, and solidified its number one spot in Youngstown.[34]

Historical checks

In 2012, Huntington started displaying old checks that were written by famous historical people, including 24 former U.S. Presidents such as Abraham Lincoln, George Washington, Thomas Jefferson, Andrew Jackson, Theodore Roosevelt, Franklin Roosevelt, and Niles, Ohio native William McKinley. Other famous historical people featured were checks signed by Charles Dickens, Thomas Edison, Ernest Hemingway, and Susan B. Anthony, among others.[35] The most notable check was one written by Lincoln to "self" for $800 dated April 13, 1865, the day before his assassination.[36] The checks are estimated to be worth over $75,000 today. Huntington acquired the checks in 1983 when it purchased Union Commerce Bank and received several boxes of old documents, but weren't discovered until 2011 when a Huntington employee was looking through the documents.[37]

Huntington Preferred Capital

Huntington Bancshares also operates Huntington Preferred Capital, Inc. This entity serves as a Real Estate Investment Trust (REIT).

Huntington Preferred Capital was organized under Ohio law in 1992 and designated as a REIT in 1998. Four related parties own HPCI's common stock: Huntington Capital Financing LLC; Huntington Preferred Capital II, Inc.; Huntington Preferred Capital Holdings, Inc.; and Huntington Bancshares Incorporated. All these entities are tied via ownership and/or interlocking directorships to Huntington Bancshares, either directly or through Huntington National Bank.[38]

In addition to the common stock, Huntington Preferred Capital also issued 2 million shares of preferred stock, paying a quarterly cash dividend of $0.4925 per share. This stock is largely held by the same companies as the common stock, but a small fraction of the available shares are sold on the open market.

Huntington Preferred Capital had one subsidiary, HPCLI, Inc., a taxable REIT subsidiary formed in March 2001 for the purpose of holding certain assets (primarily leasehold improvements). On December 31, 2007, Huntington Preferred Capital paid common stock dividends consisting of cash and the stock of HPCLI to its common stock shareholders. After the stock dividend was paid, HPCLI became a wholly owned subsidiary of Huntington Preferred Capital Holdings, which holds all the shares of HPCLI.[38]

Banking offices

Huntington Bank location in Springboro, Ohio.
Number of banking offices by State[1]
State Banking offices
Ohio 403
Florida 2
Indiana 52
Kentucky 14
Michigan 129
Pennsylvania 62
West Virginia 34

Services

Huntington Bancshares provides retail and commercial financial services in Indiana, Kentucky, Michigan, Ohio, Pennsylvania, and West Virginia.[39] Huntington also provides retail services online. In the first quarter of 2013, Huntington changed its ATMs to new ones that allow customers to make deposits without fumbling with deposit slips and envelopes; instead, they insert cash and checks directly into the ATM.[40] The bank started in 2014 offering ATM deposits from mobile phones and through online transfers until 11:59 p.m. and post them that day.[41] In another move, the bank will no longer count pending debit card transactions against available funds for purposes of calculating overdrafts or non-sufficient funds fees.[41] There also are selected financial service activities in other states, including offices in Florida, Cayman Islands, and Hong Kong.[1]

Sponsorship

Huntington owns the naming rights to the Huntington Center in Toledo, Ohio,[42] Huntington Park in Columbus, Ohio, as well as a 10-year sponsorship with Michigan State University that began in 2012 and includes Huntington financing upgrades to Spartan Stadium in exchange for acknowledgement on scoreboards, programs and videos in football, hockey and basketball venues.[43] On April 6, 2016, Huntington announced that it would purchase the naming rights for the Cleveland Convention Center from FirstMerit Corporation. The new name is Huntington Convention Center of Cleveland.[44]

References

  1. 1 2 3 4 5 6 7 8 9 10 "Huntington Bancshares Inc. Profile". Yahoo! Finance. Sunnyvale, California: Yahoo!. Retrieved January 12, 2010.
  2. 1 2 3 4 Heer 1914, p. 312.
  3. ↑ "The World's Biggest Public Companies 2016 RANKING". Forbes. Jersey City, New Jersey: Forbes, Inc. Retrieved June 26, 2016.
  4. ↑ "Top 50 Holding Companies" (PDF). Federal Financial Institutions Examination Council. Washington, D.C.: U.S. government. September 2, 2015. Retrieved February 19, 2015.
  5. ↑ "Fortune 500 2008: Fortune 1000 601-700". Fortune. Atlanta: CNN. May 5, 2008. Retrieved October 23, 2008.
  6. 1 2 Salgat, Ken (February 18, 2002). "Huntington National Bank's Tampa Bay area run over". Tampa Bay Business Journal. Charlotte, North Carolina. Retrieved November 14, 2012.
  7. ↑ McNally 1914, p. 60.
  8. ↑ CBF Staff (March 2, 2012). "Shaping Columbus: P.W. Huntington, founder of Huntington National Bank". Columbus Business First. Columbus, Ohio: American City Business Journals. Retrieved January 30, 2016.
  9. ↑ Herringshaw 1906, p. 869.
  10. 1 2 3 4 5 6 7 8 9 "Huntington Mortgage Group - Home Equity Loans in Ohio". Real Estate. Retrieved January 30, 2016.
  11. ↑ http://www.huntington150years.com/timeline/
  12. ↑ Whiteman, Doug (June 5, 2011). "Ohio woman, 100, still uses bank account dating to 1913". USA Today. United States: Gannett Company. Retrieved November 14, 2012.
  13. ↑ "Regulators shutter 2 big Calif. banks, 5 others". The Oklahoman. Oklahoma City: The Oklahoman Media Company. Associated Press. December 18, 2009. Retrieved November 14, 2012.
  14. ↑ "HUNTINGTON NATIONAL BANK OF NORTHEAST OHIO". The Encyclopedia of Cleveland History. Case Western Reserve University. ISBN 978-0253330567. Retrieved January 30, 2016.
  15. ↑ "HUNTINGTON BANCSHARES AND UNIZAN FINANCIAL CORP. ANNOUNCE MERGER" (PDF). huntington-ir.com. Columbus, Ohio. January 26, 2006. Retrieved January 29, 2016.
  16. ↑ "Huntington Bancshares to Acquire Sky Financial". The New York Times (Press release). New York City: The New York Times Company. December 20, 2006. Retrieved January 29, 2016.
  17. ↑ "HUNTINGTON BANCSHARES AND SKY FINANCIAL GROUP ANNOUNCE MERGER AGREEMENT" (PDF). huntington-ir.com. Columbus, Ohio. December 20, 2006. Retrieved January 29, 2016.
  18. ↑ "Huntington rebranding Sky Bank branches". The Plain Dealer. Cleveland: Advance Publications (Newhouse Newspapers). September 21, 2007. Retrieved January 29, 2016.
  19. ↑ "HUNTINGTON BANCSHARES ANNOUNCES FEDERAL RESERVE APPROVAL OF MERGER" (PDF). huntington-ir.com. Columbus, Ohio. June 4, 2007. Retrieved January 29, 2016.
  20. ↑ Investquest Staff (March 21, 2006). "Sky Partners with Eat'n Park Restaurant Chain". Investquest. Hilliard, Ohio. Retrieved January 30, 2016.
  21. ↑ Sabatini, Patricia (March 21, 2009). "FNB won't buy National City units". Pittsburgh Post-Gazette. Pittsburgh: Block Communications. Retrieved November 14, 2012.
  22. ↑ Olson, Thomas (April 8, 2009). "First Niagara Bank buys 57 National City Bank branches from PNC". Pittsburgh Tribune-Review. Pittsburgh: Tribune-Review Publishing Company. Retrieved November 14, 2012.
  23. ↑ van Doorn, Philip (October 3, 2009). "Three More Banks Fail". New York City: TheStreet.com. Retrieved November 14, 2012.
  24. ↑ "FirstMerit to acquire Citizens Republic bank". The Blade. Toledo, Ohio: Block Communications. September 14, 2012. Retrieved November 14, 2012.
  25. ↑ "HUNTINGTON BANCSHARES INCORPORATED STRENGTHENS ITS NUMBER ONE BRANCH SHARE IN OHIO WITH THE ACQUISITION OF OHIO BASED CAMCO FINANCIAL" (PDF). huntington-ir.com. Columbus, Ohio. October 10, 2013. Retrieved January 29, 2016.
  26. ↑ "Huntington Bancshares Expands in Ohio with Closing of Acquisition of Camco Financial, Parent of Advantage Bank". Columbus, Ohio: Huntington Bancshares. March 4, 2014. Retrieved September 11, 2016.
  27. ↑ LeBlanc, Beth (April 9, 2014). "Huntington buys Bank of America branches". The Times Herald. Port Huron, Michigan: USA Today. Retrieved April 10, 2014.
  28. ↑ Dresden, Eric (May 14, 2014). "Huntington Bank buys 13 branches to Flint-area, Monroe, Muskegon in $500 million deal". The Flint Journal. Flint, Michigan: Booth Newspapers (Advance Publications). Retrieved September 17, 2014.
  29. ↑ Business Wire Staff (April 1, 2015). "Huntington Bancshares Finalizes Acquisition of Macquarie Equipment Finance, Inc.". Business Wire. San Francisco: Berkshire Hathaway. Retrieved January 30, 2016.
  30. ↑ Lin-Fisher, Betty (January 25, 2016). "Huntington to acquire Akron-based FirstMerit". Akron Beacon Journal. Akron, Ohio: Black Press. Retrieved January 29, 2016.
  31. ↑ Nobile, Jeremy (2016-07-27), "First Commonwealth Bank to acquire 13 branches divested in Huntington, FirstMerit merger", Crain's Cleveland Business, Cleveland, Ohio: Crain Communications, retrieved 2016-08-21
  32. ↑ Mark, Williams (2016-03-11), "Huntington to close 107 offices as part of FirstMerit acquisition", The Columbus Dispatch, Columbus, Ohio: GateHouse Media, retrieved 2016-08-21
  33. ↑ Mark, Williams (2016-08-16), "Huntington closes FirstMerit deal", The Columbus Dispatch, Columbus, Ohio: GateHouse Media, retrieved 2016-08-21
  34. ↑ Huntington's purchase of FirstMerit will mean branch closures, job loss The Plain Dealer (01/26/2016)
  35. ↑ Murray, Teresa Dixon (January 11, 2012). "Huntington Bank discovers original checks signed by Lincoln, Washington, Edison, Twain and others". The Plain Dealer. Cleveland: Advance Publications (Newhouse Newspapers). Retrieved November 14, 2012.
  36. ↑ "Check Lincoln wrote day before being shot is found". Yahoo! News. Sunnyvale, California: Yahoo!. Associated Press. January 14, 2012. Retrieved November 14, 2012.
  37. ↑ "Cached at Huntington: Lincoln's Last-Known Check". The Wall Street Journal. New York City: News Corp (via Dow Jones & Company). November 26, 2011. Retrieved January 30, 2016.
  38. 1 2 "Huntington Preferred Capital Inc. (HPCCP) news stock charts". Real Pennies. United States. Retrieved November 14, 2012.
  39. ↑ "Huntington National Bank". Chamber of Commerce. Zanesville, Ohio. Retrieved January 30, 2016.
  40. ↑ Williams, Mark (February 18, 2013). "Huntington switching to ATMs that can do more". The Columbus Dispatch. Columbus, Ohio: New Media Investment Group. Retrieved January 30, 2016.
  41. 1 2 Murray, Teresa Dixon (April 18, 2014). "Huntington Bank expands deposit times until midnight, adds to 'fair play' strategy". The Plain Dealer. Cleveland: Advance Publications (Newhouse Newspapers). Retrieved January 30, 2016.
  42. ↑ Vellequette, Larry (April 16, 2010). "Downtown Toledo arena gets a new name; bank agrees to purchase rights for $2.1 million". The Blade. Toledo, Ohio: Block Communications. Retrieved November 14, 2012.
  43. ↑ Michigan State Spartans Staff (July 24, 2012). "MSU & Huntington Bank Announce Multi-Sport Sponsorship Agreement". Michigan State Spartans (Press release). East Lansing, Michigan: Michigan State University. Retrieved May 18, 2016.
  44. ↑ Yahoo! Finance Staff (April 6, 2016). "Huntington Assumes Cleveland Convention Center Naming Rights". Yahoo! Finance (Press release). Sunnyvale, California: Yahoo!. Retrieved May 17, 2016.

Sources

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