Huntington Bancshares reported 2011 first-quarter net income of $126.4 million compared with net income of $39.7 million in the year-ago quarter.

Huntington said the provision for credit losses declined $37.6 million, or 43%, from the 2010 fourth quarter, which reflected an 18% decline in non-accrual loans from the end of the prior quarter, commensurate with a 19% decrease in the level of new non-accrual loans. The bank noted that net charge-offs were $165.1 million, or an annualized 1.73% of average total loans and leases in the first quarter, down from $172.3 million, or 1.82%, in the 2010 fourth quarter.

“First quarter results were consistent with our expectations and set the stage for continued earnings growth throughout this year,” said Stephen D. Steinour, chairman, president and chief executive. “Throughout last year, and continuing into this year, we are taking advantage of what we view as a moment in time to make significant investments in strategic initiatives to position us for more profitable and sustainable long-term growth. Reflecting these factors and the reality of certain near-term revenue headwinds, we previously noted that the primary driver of earnings growth in early 2011 would be lower provision for credit losses as credit quality continued to improve. As such, we are very pleased with this quarter’s continued, significant improvement in our credit quality.”