Huntington's wealth businesses suffer setback in 2Q
Huntington National Bank's wealth management businesses hit a rough patch in the second quarter, according to the bank's latest financial results released on Thursday.
Second-quarter revenue declined across all wealth-related units, with trust services posting the sharpest fall. Revenue from trust operations slid 15% to $22 million from $27 million in the same quarter a year ago. Revenue was also off from the prior quarter, falling by 1%.
The 15% year-over-year decline was primarily due to the sale of Huntington Asset Advisors and two related mutual fund services subsidiaries in the fourth quarter of 2015, the bank explained in the earnings release.
For the first six months of 2016, the bank's trust operations generated $45.3 million, down a significant 18% year-over-year.
Second-quarter revenue from insurance services also dropped discernibly, sliding 10% year-over-year to $16 million. Insurance revenue was also down 2% from the prior quarter.
For the first half of 2016, insurance services reeled in $32.2 million in revenue, a 4% drop from the first half of 2015.
The bank's brokerage business did not escape the headwinds, posting a 4% year-over-year revenue decline. The $15 million it drew in second-quarter revenue was also off 6% from the prior quarter.
For the first six months of 2016, the brokerage business generated $30.1 million in revenue, down 2% year-over-year.
Sandra Pierce will assume her role once Huntington completes its acquisition of FirstMerit.
Eleven executives were tapped this year to lead wealth management and related investment services groups at Key Private Bank, Regions Bank, U.S. Bank, Wells Fargo Private and Wilmington Trust. Find out who they are and what their new roles entail.
Overall, Huntington Bancshares, the parent of Huntington Bank, earned $175 million, or 19 cents per common share, in the second quarter, compared with $196 million, or 23 cents per common share, in the same quarter of 2015.
"We continued to deliver solid 2016 performance during the second quarter," Steve Steinour, Huntington's chairman, president and CEO, said in a statement. "The quarter demonstrated encouraging growth in business lending and ongoing strong performance in auto loans and residential mortgage."