Huntington National Bank's assets fell because partnership ended

Back to TopCommentsE-mailPrintBookmark and Share
On The Beat Industry News In Brief

Last week’s front-page story “Shuffling the deck” pointed out the significant gains midsize banks have made in the Indianapolis market over the last year. The one glaring exception was Columbus, Ohio-based Huntington National Bank, which had lost $56.3 million in local deposits as of June 30, according to the FDIC.

A closer look explains why. In 2007, Huntington dramatically increased its Indianapolis presence by buying Salineville, Ohio-based Sky Bank, which previously had purchased Fort Wayne-based Union Federal Bank and its parent, Waterfield Mortgage Co.

Columbus, Ohio-based Huntington is now the No. 4 bank in Indianapolis. (IBJ Photo/Robin Jerstad)

The acquisition boosted the number of Huntington branches in central Indiana from 21 to 49. And Huntington’s local deposits nearly tripled, from $645.9 million on June 30, 2007, to $1.7 billion on June 30 this year. The bank is now No. 4 in the Indianapolis Metropolitan Statistical Area, with about 600 area employees and 6.13-percent market share.

Part of its deposit growth came from a relationship that ended this year. Regional President Mike Newbold said his bank exited a partnership with Irvine, Calif.-based Affinity Financial Corp. A Union Federal legacy, the relationship had provided Huntington a brokered portfolio of $300 million in private-label deposits from member-based organizations.

Exclude that change, and Huntington’s results here were similar to its peers like Cincinnati-based Fifth Third Bank, Milwaukee-based M&I Bank and Cleveland-based KeyBank.

“While profitable, it was not generating the type of returns we wanted to show our shareholders,” Newbold said. “If you net the effect of that out, what the figures would show is what we’re actually experiencing, which is significant deposit growth.”



Post a comment to this story

We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
You are legally responsible for what you post and your anonymity is not guaranteed.
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
Subscribe to IBJ