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Core Insights - Huntington Bancshares Incorporated (HBAN) reported second-quarter 2025 adjusted earnings per share (EPS) of 38 cents, matching the Zacks Consensus Estimate and up from 30 cents in the prior-year quarter [1][7] - The company experienced a $58 million decrease in pre-tax earnings due to securities repositioning, impacting EPS by 4 cents [1] Financial Performance - Net income attributable to common shareholders (GAAP basis) was $536 million, an increase from $474 million in the prior-year quarter [2] - Total quarterly revenues increased 10.8% year over year to $2.01 billion, surpassing the Zacks Consensus Estimate of $1.98 billion [3] - Net interest income (NII) rose 12% year over year to $1.48 billion, driven by higher average earning assets and a net interest margin (NIM) increase of 12 basis points to 3.11% [3][7] - Non-interest income decreased 4% year over year to $471 million, while non-interest expenses rose 7% to $1.19 billion, primarily due to higher personnel and marketing costs [4][7] Loans and Deposits - Average loans and leases increased 2% sequentially to $133.2 billion as of June 30, 2025 [5] - Average total deposits rose 1% to $163.4 billion [5] Credit Quality - Net charge-offs were $66 million, down from $90 million in the prior-year quarter, with a net charge-off ratio of 0.20%, down from 0.29% [6] - The allowance for credit losses increased 3.8% to $2.52 billion, while total non-performing assets rose 9.2% to $852 million [6] Capital Ratios - The common equity tier 1 risk-based capital ratio was 10.5%, up from 10.4% in the prior-year period [9] - The regulatory Tier 1 risk-based capital ratio decreased to 11.8% from 12.1% in the comparable period in 2024 [9] - The tangible common equity to tangible assets ratio increased to 6.6% from 6% in the prior-year quarter [9] Strategic Outlook - The company's inorganic expansion efforts are expected to bolster revenue growth in the near term, with a focus on enhancing commercial banking capabilities in key growth markets [10]

Core Insights - Huntington Bancshares (HBAN) reported $2.01 billion in revenue for Q2 2025, a year-over-year increase of 10.8%, with EPS of $0.38 compared to $0.30 a year ago, exceeding the Zacks Consensus Estimate of $1.98 billion by 1.6% [1] - The company has shown strong performance metrics, with an efficiency ratio of 59%, net interest margin of 3.1%, and net charge-offs at 0.2%, all outperforming analyst estimates [4] Financial Performance - Revenue: $2.01 billion, up 10.8% year-over-year, compared to $1.98 billion estimate [1] - EPS: $0.38, matching the consensus estimate [1] - Total Non-Interest Income: $471 million, below the $513.55 million estimate [4] - Mortgage Banking Income: $28 million, below the $31.36 million estimate [4] - Customer Deposit and Loan Fees: $95 million, above the $88.58 million estimate [4] - Payments and Cash Management Revenue: $165 million, slightly above the $163.16 million estimate [4] - Wealth and Asset Management Revenue: $102 million, slightly below the $103.81 million estimate [4] - Capital Markets and Advisory Fees: $84 million, above the $73.97 million estimate [4] Market Performance - Shares of Huntington Bancshares have returned +8% over the past month, outperforming the Zacks S&P 500 composite's +5.4% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for near-term outperformance [3]

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]

Core Viewpoint - Huntington Bancshares (HBAN) has announced a definitive agreement to acquire Veritex Holdings, Inc. (VBTX) in an all-stock transaction valued at $1.9 billion [1][10]. Acquisition Details - Huntington will issue 1.95 shares for each outstanding share of Veritex, implying a value of $33.91 per Veritex share based on HBAN's closing price on July 11, 2025 [2]. - The deal has received unanimous approval from both companies' boards and is expected to close in early Q4 2025, pending regulatory and shareholder approval [2]. Financial Impact - The transaction is projected to be modestly accretive to Huntington's earnings per share and neutral to regulatory capital at closing [3]. - It is expected to be slightly dilutive to tangible book value per share, with a payback period of approximately one year from closing [3]. Operational Changes - Upon completion, Veritex branches will operate under the Huntington Bank brand, with plans to maintain and expand Veritex's existing branch network in Texas, including Dallas/Fort Worth and Houston [4][10]. Strategic Rationale - The acquisition aims to accelerate Huntington's organic growth in Texas, particularly in the Dallas/Fort Worth and Houston markets [5]. - The merger will add approximately $13 billion in assets, $9 billion in loans, and $11 billion in deposits to Huntington's balance sheet [5][10]. - Huntington's CEO emphasized the importance of local relationships and customer loyalty brought by Veritex, which will support future growth in Texas [6]. Expansion Efforts - Huntington has been actively expanding its commercial banking business in Texas, including the introduction of new verticals such as the Financial Institutions Group and the Aerospace & Defense Group [7]. - These strategic efforts are expected to enhance Huntington's commercial banking capabilities and attract new customer segments across the region [8]. Market Performance - Over the past year, shares of Huntington have risen 19%, outperforming the industry's growth of 16.4% [11].

Core Viewpoint - Analysts project that Huntington Bancshares (HBAN) will report quarterly earnings of $0.34 per share, reflecting a year-over-year increase of 13.3% and revenues of $1.98 billion, up 9.2% from the same quarter last year [1]. Earnings Estimates - Over the past 30 days, the consensus EPS estimate has been adjusted upward by 1.2%, indicating a collective reassessment by covering analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong relationship between earnings estimate revisions and short-term stock price performance [3]. Key Metrics Forecast - Analysts estimate the 'Efficiency Ratio' to be 60.4%, slightly improved from 60.8% a year ago [5]. - The 'Average Balance - Total earning assets' is projected at $191.10 billion, compared to $178.06 billion last year [5]. - The 'Tier 1 Leverage Ratio' is expected to be 8.4%, down from 8.8% a year ago [5]. - The 'Regulatory Tier 1 risk-based capital ratio' is estimated at 12.0%, slightly lower than the 12.1% reported in the same quarter last year [6]. Revenue Projections - 'Total Non-Interest Income' is expected to reach $520.55 million, up from $491.00 million in the same quarter last year [6]. - 'Mortgage banking income' is projected at $33.96 million, compared to $30.00 million a year ago [7]. - 'Customer deposit and loan fees' are expected to be $88.58 million, up from $83.00 million last year [7]. - 'Payments and cash management revenue' is forecasted at $162.96 million, compared to $154.00 million last year [8]. - 'Wealth and asset management revenue' is estimated at $103.61 million, up from $90.00 million a year ago [8]. - 'Capital markets and advisory fees' are expected to reach $76.17 million, compared to $73.00 million last year [9]. - 'Net interest income - FTE' is projected at $1.47 billion, up from $1.33 billion a year ago [9]. - 'Leasing revenue' is expected to be $15.53 million, down from $19.00 million last year [9]. Stock Performance - Huntington Bancshares shares have increased by 8.7% over the past month, outperforming the Zacks S&P 500 composite's 5% increase, with a Zacks Rank 2 (Buy) indicating expected outperformance in the near term [11].

Core Viewpoint - Huntington Bancshares Incorporated (HBAN) is expected to report an increase in quarterly revenues and earnings year over year for the second quarter of 2025, with earnings anticipated to be stable compared to the previous quarter [1][3]. Financial Performance - The bank recorded an earnings surprise of 9.7% in the last reported quarter, driven by improvements in fee income and net interest income (NII), although non-interest expenses increased [1][2]. - Preliminary results indicate earnings of 34 cents per share, reflecting a 13.3% rise from the year-ago figure, despite a 2.9% decline in the Zacks Consensus Estimate over the past week [3][10]. - Revenues for the quarter are projected to be $1.95 billion, slightly below the consensus estimate of $1.99 billion, but still representing a year-over-year increase of 9.6% [4][10]. Key Factors Influencing Performance - NII is expected to grow to $1.5 billion, a 3% increase from the prior quarter, supported by steady loan demand and interest rates remaining unchanged by the Federal Reserve [5][10]. - The average total earnings assets are estimated to rise by 1.5% to $191.1 billion, reflecting strong demand for commercial and industrial loans [6]. - Mortgage banking income is projected to increase by 9.5% to $34 million, aided by stable refinancing activities despite fluctuating mortgage rates [7][8]. Non-Interest Income and Expenses - Total non-interest income is expected to decline by 5.4% to $520.6 million, influenced by rising expenses and credit loss reserves [10][12]. - Higher expenses are anticipated due to increased costs from data processing, marketing, and expansion efforts in commercial banking [13][14]. Asset Quality - The bank has increased its allowance for credit losses by $37 million to $2.5 billion, reflecting concerns over potential delinquent loans amid economic uncertainties [14]. - The Zacks Consensus Estimate for total non-accrual loans indicates a 3.5% increase from the prior quarter, suggesting a cautious approach to asset quality [15]. Earnings Expectations - The chances of HBAN beating earnings estimates are considered low due to a negative Earnings ESP of -2.42% [16]. - The company currently holds a Zacks Rank of 2 (Buy), indicating a favorable outlook compared to other stocks [17].