COLUMBUS, Ohio — In what the top executive called a "bright spot," Huntington Bancshares enjoyed healthy, double-digit gains in average automobile loans and leases when looking at both quarter-over-quarter and year-over-year comparisons.

When first comparing the third quarter with the second quarter of this year, company executives said vehicle contracts constituted a gain of $500 million, which translated into an 11-percent rise.

Specifically, auto loans and leases were at $5.1 billion, up from $4.6 billion in the prior quarter. 

"We have consistently maintained historical high credit quality standards on this production while achieving an appropriate return," Huntington executives insisted.

"During the quarter, we continued the expansion of our automobile lending operations eastward, complementing our eastern Pennsylvania operations with expansion into five New England states," they continued. "The recent expansions incorporate new experienced colleagues with existing dealer relationships in those markets."

A view of how Huntington's automotive performance compares with the third quarter of last year reveals an even more significant climb.

The company's average automobile loans and leases have grown by $1.9 billion, or 59 percent, year-over year.

"Underlying growth in automobile loans continued to be strong, reflecting a significant increase in loan originations for the first nine months of 2010 from the comparable year-ago period," Huntington officials stated.

The discussion about automotive activity was a part of Huntington's overall financial report shared last week.

The company computed that its third quarter net income totaled $100.9 million, or 10 cents per common share. The figure is a sharp upward turn from what Huntington posted in comparative time frames.

In the second quarter of this year, the company had a net income total of $48.8 million or 3 cents per common share. During the third quarter of last year, Huntington posted a net loss of $166.2 million, or 33 cents per common share in the year-ago quarter. 

For the first nine months of this year, Huntington indicated its net income came in at $189.4 million, or 14 cents per common share. In the year-ago period, the company's net loss totaled $2.7 billion, or $6.08 per common share, in the comparable year-ago period.

Officials pointed out the year-ago period included $2.6 billion pre-tax, or $5.52 per common share, of goodwill impairment charges.

Huntington determined its third quarter total revenue was $679.7 million, up 1 percent from the prior quarter. The company said that amount was driven by a $10.4 million, or 3-percent, increase in fully taxable equivalent net interest income.

"This reflected 8-percent annualized growth in average earnings assets, including 1-percent annualized growth in average total loans and leases, and a net interest margin of 3.45 percent, down one basis point from the prior quarter," the company explained.

Stephen Steinour, Huntington's chairman and chief executive officer, discussed the company's significant upward performance.

"There was much to be pleased with about our 2010 third quarter financial performance," Steinour declared.

"Net income was higher. Revenue grew. And we saw continued significant improvement in credit quality as nonperforming assets and net charge-offs declined and reserve coverage of nonperforming assets increased. Capital ratios also strengthened," Steinour continued.

"These are all trends we expect will continue going forward," he went on to say. "We continue to be challenged by the current economy. But while the environment is difficult, it is not as tough as it was last year. Growth in our automobile loans continued to be a bright spot, and we were able to generate modest growth in commercial and industrial loans."

Steinour looked ahead for ways Huntington could sustain its positive financial momentum.

"During the third quarter, we continued to make significant investments in people, product expansion, and distribution designed to grow revenues and improve long-term profitability," Steinour insisted.

"In addition, and recognizing that customer attitudes toward banks and banking have changed, we introduced our 'Fair Play' banking philosophy," he went on to say. "This will reposition Huntington as the most customer-friendly bank in our markets, with the objective of accelerating customer acquisition and thereby revenue growth. We voluntarily reduced certain deposit service charges, over and above that resulting from the industry's implementation of the amendment to Reg E. Combined, these investments and fee reductions create temporary earnings headwinds. 

"Reflecting this, third quarter pre-tax, pre-provision earnings declined to $265.2 million, or 2 percent, from the second quarter. For the near term, we expect pre-tax, pre-provision earnings to remain around the current level," Steinour also pointed out. "We believe that our strategic investments and market repositioning will position us, over time, to resume our growth trajectory in pre-tax, pre-provision earnings."