Mortgages drive Huntington’s loan growth

Huntington Bancsharesreported that its total average consumer loans increased 15% the year-ago quarter primarily due to a $1.1 billion, or 37%, increase in average residential mortgages. Average home equity loan volume increased $500 million, or 13%, though annualized linked-quarter growth rates for the first half of 2005 have been at rates roughly half that, at 6% and 7%, for 1Q05 and 2Q05, respectively. Average total auto loans decreased $300 million, or 11%, from the year-ago quarter reflecting the sale of automobile loans over the past year, as part of a strategy of reducing automobile loan and lease exposure as a percent of total credit exposure. Partially offsetting the decline in automobile loans was growth in direct financing leases due to the continued migration from operating lease assets, which have not been originated since April 2002.