Huntington Bancshares (HBAN 0.90%) reported second quarter 2025 results on July 18, 2025, featuring earnings per share (EPS) of $0.34 and sequential growth in average loans and deposits of $2.3 billion (1.8%) and $1.8 billion (1.1%), respectively. Loan growth exceeded internal forecasts, prompting increases in full-year loan growth guidance (now 6% to 8%), while the upcoming Veritex acquisition was described as a significant catalyst for Texas market expansion.Material Operating Leverage Enhances Long-Term ...

Core Viewpoint - Huntington Bancshares (HBAN) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with stock price movements, particularly due to institutional investors' reliance on these estimates for valuation [4][6]. - The recent upgrade reflects an improvement in Huntington Bancshares' underlying business, suggesting that investors may respond positively by driving the stock price higher [5][10]. Earnings Estimate Revisions - Analysts have raised their earnings estimates for Huntington Bancshares, with the Zacks Consensus Estimate for the fiscal year ending December 2025 projected at $1.46 per share, showing no year-over-year change. Over the past three months, estimates have increased by 4.8% [8]. Zacks Rank System - The Zacks Rank system classifies stocks based on earnings estimates into five groups, with only the top 20% receiving a "Strong Buy" or "Buy" rating. Huntington Bancshares' upgrade places it in this top tier, indicating potential for market-beating returns [7][10].

Group 1 - The core focus of Quad 7 Capital is to provide investment opportunities through their BAD BEAT Investing platform, emphasizing both long and short trades with a proven track record of success [1] - The team consists of 7 analysts with diverse expertise in business, policy, economics, mathematics, game theory, and sciences, aiming to educate investors on proficient trading [1] - Since May 2020, the company has maintained an average position of 95% long and 5% short, showcasing their strategic approach to market conditions [1] Group 2 - BAD BEAT Investing offers various benefits, including weekly well-researched trade ideas, access to 4 chat rooms, and daily summaries of key analyst upgrades and downgrades [2] - The platform also provides educational resources for basic options trading and extensive trading tools to enhance investor knowledge and execution [2]

Key Takeaways HBAN posted Q2 adjusted EPS of 38 cents, up from 30 cents a year ago and in line with consensus estimate. Net interest income rose 12% Y/Y to $1.48B, driven by higher earning assets and stronger net interest margin. Non-interest income fell 4% Y/Y, while expenses rose 7% due to higher staffing, and marketing costs.Huntington Bancshares Incorporated (HBAN) reported second-quarter 2025 adjusted earnings per share (EPS) of 38 cents, which matched the Zacks Consensus Estimate. In the prior-year ...

Huntington Bancshares (HBAN) reported $2.01 billion in revenue for the quarter ended June 2025, representing a year-over-year increase of 10.8%. EPS of $0.38 for the same period compares to $0.30 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $1.98 billion, representing a surprise of +1.6%. The company has not delivered EPS surprise, with the consensus EPS estimate being $0.38.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and ...

Financial Data and Key Metrics Changes - Earnings per common share were reported at $0.34, with an adjusted EPS growth of 27% year over year [17][18] - Average loan balances increased by $2.3 billion or 1.8% from the prior quarter, while average deposits rose by $1.8 billion or 1.1% [19][20] - Adjusted common equity tier one (CET1) was 9%, up 40 basis points from last year, while tangible book value per share increased by 16% year over year [10][19] Business Line Data and Key Metrics Changes - Loan balances grew by 7.9% year over year, driven by strength in commercial loans and contributions from new initiatives [21] - New initiatives accounted for approximately 40% of total loan growth, with significant contributions from Texas and North and South Carolina regions [21][22] - Average deposit growth was driven by household growth and deepening primary bank relationships, with a 46% increase year over year in consumer and business banking [10][23] Market Data and Key Metrics Changes - The company maintained a strong liquidity position with two times coverage of uninsured deposits [11] - Credit performance remained stable with net charge-offs at 20 basis points, reflecting proactive management of loan portfolios [11][20] - The criticized asset ratio was reported at 3.82%, indicating stable credit quality [32] Company Strategy and Development Direction - The company is focused on core growth strategies and recently announced the acquisition of Veritex, which is expected to accelerate growth in Texas [6][12] - The acquisition is seen as financially attractive and aligned with the company's model of delivering broad-based capabilities through local relationships [14][15] - The company aims to expand its consumer franchise in Texas and enhance commercial lending and capital markets opportunities [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the economic environment, noting signs of improving sentiment and strong growth momentum [32][34] - The company raised its loan growth outlook to 6% to 8% and deposit growth to 4% to 6% for the remainder of the year [33][34] - Management highlighted the importance of maintaining a disciplined approach to deposit pricing while expanding primary bank relationships [10][34] Other Important Information - The company reported a 12% year-over-year growth in net interest income, with a net interest margin of 3.11% for the second quarter [24][20] - Non-interest income increased by 7% year over year, with key areas of focus such as payments, wealth management, and capital markets growing by 11% [26][29] - The company plans to unveil a new branding campaign to enhance customer acquisition and deepen relationships [37] Q&A Session Summary Question: Concerns about net interest income guidance - Management indicated that they are on track to potentially hit the higher end of the net interest income guidance range, with economic stability being a key factor [45][46] Question: Feedback on Veritex acquisition - Positive feedback was received from shareholders and employees, with expectations of synergies and growth opportunities in Texas [48][49][60] Question: Deposit trends and competition - Management noted strong deposit performance and a stable competitive environment, with expectations for continued solid deposit growth [52][54] Question: Changes in expense guidance - The increase in expense guidance was primarily driven by higher revenue and profit outlook, with a focus on maintaining positive operating leverage [64][66] Question: Loan growth and competitive landscape - Management acknowledged a strong loan growth trajectory, with expectations for continued contributions from new initiatives despite some competitive pressures [68][70] Question: Outlook for North and South Carolina - The company remains optimistic about growth in these regions, with ongoing investments in branch openings and hiring new bankers [75][76] Question: Funding strategy and deposit growth - Management emphasized optimizing funding and loan growth, with expectations for deposit growth to match loan growth over the long term [82][84] Question: Efficiency ratio outlook - Management indicated that while the efficiency ratio has been stable, they expect improvements over time as they continue to invest in growth opportunities [97][100]

Financial Data and Key Metrics Changes - Earnings per common share were reported at $0.34, with EPS excluding notable items growing 27% year over year [14] - Average loan balances increased by $2.3 billion or 1.8% from the prior quarter, while average deposits rose by $1.8 billion or 1.1% [15][20] - Adjusted common equity tier one (CET1) was 9%, up 40 basis points from last year, and tangible book value per share increased 16% year over year [8][15] - Return on tangible common equity (ROTCE) was 16.1% for the quarter, adjusted ROTCE was 17.6% [14][15] Business Line Data and Key Metrics Changes - Average loans grew by almost $10 billion year over year, with significant contributions from commercial loans and new initiatives [7][17] - New initiatives accounted for approximately 40% of total loan growth, with $900 million in growth [17] - Fee income in strategic areas such as payments, wealth, and capital markets grew by 11% year over year [8][23] Market Data and Key Metrics Changes - The company reported strong deposit growth, with primary bank relationships increasing by 46% year over year in consumer and business banking [8] - The overall cost of deposits declined by one basis point, reflecting disciplined deposit pricing [20][52] Company Strategy and Development Direction - The company is focused on organic growth and has announced the acquisition of Veritex to accelerate growth in Texas [5][10] - The acquisition is expected to enhance commercial lending and capital markets opportunities, as well as expand the consumer franchise in Texas [12][13] - The company aims to maintain a moderate to low risk appetite while delivering strong performance [5] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the economic environment, noting improving sentiment and strong growth momentum [29] - The outlook for loan growth has been increased to 6% to 8%, and net interest income guidance has been raised to 8% to 9% for the full year [30][31] - Management remains focused on driving long-term shareholder value and believes the acquisition will contribute to future growth [36][109] Other Important Information - The company is maintaining a strong liquidity position with two times coverage of uninsured deposits [9] - Credit performance remains stable, with net charge-offs at 20 basis points and an allowance for credit losses at 1.86% [15][28] Q&A Session Summary Question: Concerns about net interest income guidance - Management indicated that they are on track to potentially hit the higher end of the net interest income guidance range, with economic stability being a key factor [42][43] Question: Feedback on the Veritex acquisition - Positive feedback was received from both internal and external partners, with excitement about the opportunities the acquisition presents [45][46][48] Question: Deposit trends and competition - Management noted strong deposit performance and expects continued solid growth, with stable deposit costs anticipated [50][52] Question: Changes in expense guidance - The increase in expense guidance is primarily due to higher incentive compensation linked to better revenue outlook [62][63] Question: Loan growth and competitive environment - Management acknowledged a slowdown in growth from new initiatives but remains optimistic about future contributions [65][66] Question: Outlook for North and South Carolina - The company continues to invest in these markets, with plans for new branch openings and hiring [72][73] Question: Capital levels and future distributions - Management is focused on maintaining a strong capital position and plans to begin regular capital distributions post-acquisition [108][109]

Financial Performance - GAAP EPS was $0.34, including a $0.04 impact from a $58 million decrease in pre-tax earnings due to securities repositioning and Notable Items that decreased pre-tax earnings by $3 million[27] - ROTCE was 16.1%, or 17.6% on an adjusted basis[21] - Total revenue (FTE) grew by 8% YoY[29] - Pre-Provision Net Revenue (PPNR) grew by 8% YoY, or 15% on an adjusted basis[29] Loan and Deposit Growth - Average loans increased by $2.3 billion QoQ, representing a 1.8% increase[27] - Average loans increased by 7.9% YoY[20] - Average deposits increased by $1.8 billion QoQ, representing a 1.1% increase[27] - Average deposits increased by 6.4% YoY[20] Capital and Credit Quality - Tangible book value per share grew by 16% YoY[20] - Adjusted CET1 increased by 40bps over the last 4 quarters[21] - Net charge-offs were 0.20%[20] - Uninsured deposit coverage was 2x[20] Strategic Initiatives - Consumer primary bank relationship (PBR) grew by 4% YoY, and business PBR grew by 6% YoY[21] - Key Strategic Fee areas grew by 11% YoY[21] - The company announced the acquisition of Veritex in Texas[21]

Core Insights - Huntington Bancshares Incorporated reported a net income of $536 million for Q2 2025, reflecting a 2% increase from the previous quarter and a 13% increase year-over-year [2] - The company achieved a return on average assets of 1.04% and a return on average common equity of 11.0% [3] - The CEO highlighted the successful execution of the organic growth strategy, with significant customer acquisition and deepening relationships contributing to growth in net interest income and fee-based revenue [4] Financial Performance - Earnings per common share (EPS) remained at $0.34, with a $0.04 increase compared to the year-ago quarter [5] - Net interest income rose by $41 million (3%) from the prior quarter and by $155 million (12%) year-over-year [5] - Noninterest income decreased by $23 million (5%) from the prior quarter, but increased by $37 million (7%) when excluding certain losses [5] Loan and Deposit Growth - Average total loans and leases increased by $2.3 billion (2%) from the prior quarter and by $9.8 billion (8%) year-over-year, reaching $133.2 billion [5] - Average commercial loans grew by $1.6 billion (2%) from the prior quarter and by $6.7 billion (10%) year-over-year [5] - Average total deposits increased by $1.8 billion (1%) from the prior quarter and by $9.9 billion (6%) year-over-year [5] Credit Quality - Net charge-offs were 0.20% of average total loans and leases, a decrease of 6 basis points from the prior quarter [5] - The nonperforming asset ratio was 0.63%, which is 2 basis points higher than the prior quarter [5] - The allowance for credit losses (ACL) was $2.5 billion, or 1.86% of total loans and leases, reflecting a $37 million increase from the prior quarter [5] Capital Ratios - The Common Equity Tier 1 (CET1) risk-based capital ratio was 10.5%, slightly down from 10.6% in the prior quarter [5] - The Tangible Common Equity (TCE) ratio improved to 6.6%, up from 6.3% in the prior quarter [5] - Tangible book value per share increased by $0.33 (4%) from the prior quarter and by $1.24 (16%) year-over-year, reaching $9.13 [5] Strategic Initiatives - The announced combination with Veritex Holdings, Inc. is expected to accelerate Huntington's growth initiatives in the Texas market [5][6] - The company is focused on disciplined credit risk management, as evidenced by improved net charge-offs and stable levels of criticized and non-performing assets [6]

Key Takeaways HBAN announced a definitive agreement to acquire Veritex in a $1.9B all-stock transaction. The deal brings $13B in assets, $9B in loans, and $11B in deposits to HBAN's balance sheet. Veritex branches will rebrand as Huntington Bank, with plans to grow the Texas footprint.Huntington Bancshares (HBAN) has announced a definitive agreement to acquire Veritex Holdings, Inc. (VBTX) , a bank holding company headquartered in Dallas, TX. The all-stock transaction is valued at $1.9 billion.Details of ...