COLUMBUS, Ohio, Oct. 10, 2024 /PRNewswire/ -- Huntington Bancshares Incorporated (Nasdaq: HBAN) will release third quarter 2024 financial results prior to the market opening on Thursday, October 17, 2024. A news release and supporting financial data will be available at that time on the Investor Relations section of the company's website (www.huntington-ir.com). The Company will host a conference call to review quarterly financial results at 9 a.m. ET. Conference Call / Webcast Information The third quarter ...

COLUMBUS, Ohio, Sept. 18, 2024 /PRNewswire/ -- Huntington Bancshares Incorporated (Nasdaq: HBAN) announced that its prime rate is decreasing from 8.5 percent to 8 percent, effective September 19, 2024. Huntington's rate last changed on July 27, 2023, increasing from 8.25 percent to 8.5 percent. About Huntington Huntington Bancshares Incorporated is a $196 billion asset regional bank holding company headquartered in Columbus, Ohio. Founded in 1866, The Huntington National Bank and its affiliates provide cons ...

Investors interested in stocks from the Banks - Midwest sector have probably already heard of Huntington Bancshares (HBAN) and Commerce Bancshares (CBSH) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out. There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven s ...

Core Viewpoint - Huntington Bancshares Inc. (HBAN) is expanding its banking franchise in North Carolina and South Carolina by adding over 350 employees and launching approximately 55 retail branches over the next five years, which has positively impacted its stock price by 2.5% [1][2]. Expansion Plans - The initial branches will be located in key cities such as Charlotte, Raleigh, Winston-Salem in North Carolina, and Charleston, Columbia, Greenville in South Carolina, with construction expected to start in 2026 [2]. - This expansion aligns with other banks like JPMorgan and Comerica Inc. that are also increasing their presence in the Carolinas due to regional population growth [2][5]. Historical Context - Last year, HBAN announced plans to enhance its commercial banking presence in Charlotte, aiming to tap into high deposit levels in the Carolinas by adding experienced bankers [3]. - Since then, HBAN has established five units and built 120 relationships in the Carolinas, focusing on sectors such as middle market, small business administration, and healthcare lending [4]. Strategic Rationale - The expansion allows clients in the Carolinas to access Huntington's diverse banking services, supporting the bank's strategic plan and long-term growth strategy [6]. - The bank aims to capture an estimated $8 billion long-term deposit market, enhancing its competitive position [6][8]. Broader Expansion Strategy - Huntington's retail expansion in the Carolinas is part of a larger multi-million dollar plan to grow its banking franchise in various strategic markets, including Denver, Minneapolis, and Chicago [7]. Market Performance - Huntington's total deposits have shown a compound annual growth rate of 16.4% over the four years ending in 2023, with continued growth in the first half of 2024 [9]. - Year-to-date, Huntington's shares have increased by 15.3%, outperforming the industry average gain of 10.4% [9].

Key Takeaways Huntington Bank has acquired the naming rights for the Cleveland Browns' stadium for the next 20 years, making the team's home "Huntington Bank Field." The Columbus, Ohio-based bank bought the naming rights for the Browns' "existing stadium or a new one." The team and city are in the midst of months of disputes over whether the Browns will remain in Cleveland or build a new stadium in the suburbs. Huntington Bank (HBAN) has acquired the naming rights to the stadium where the Cleveland Browns a ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=38&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The company presents its unaudited consolidated financial statements, including balance sheets, income statements, and cash flows [Consolidated Financial Statements](index=38&type=section&id=Consolidated%20Financial%20Statements) Unaudited statements show total assets grew to $196.3 billion, while net income for the first half of 2024 declined Consolidated Balance Sheet Highlights (June 30, 2024 vs. Dec 31, 2023) | Metric | June 30, 2024 (in millions) | Dec 31, 2023 (in millions) | | :--- | :--- | :--- | | **Total Assets** | **$196,310** | **$189,368** | | Net Loans and Leases | $122,118 | $119,727 | | Total Deposits | $154,367 | $151,230 | | **Total Liabilities** | **$176,747** | **$169,970** | | **Total Shareholders' Equity** | **$19,515** | **$19,353** | Consolidated Income Statement Highlights (Six Months Ended June 30) | Metric | 2024 (in millions) | 2023 (in millions) | | :--- | :--- | :--- | | Net Interest Income | $2,599 | $2,755 | | Provision for Credit Losses | $207 | $177 | | Total Noninterest Income | $958 | $1,007 | | Total Noninterest Expense | $2,254 | $2,136 | | **Net Income Attributable to Huntington** | **$893** | **$1,161** | - For the six months ended June 30, 2024, net cash provided by operating activities was $769 million, net cash used in investing activities was $4.45 billion, and net cash provided by financing activities was $6.10 billion, resulting in a net increase in cash and cash equivalents of $2.42 billion[237](index=237&type=chunk) [Notes to Unaudited Consolidated Financial Statements](index=50&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) Detailed notes explain accounting policies, financial instrument valuations, credit loss allowances, and segment performance - The financial statements are prepared in accordance with GAAP and SEC regulations and should be read in conjunction with the 2023 Annual Report on Form 10-K[239](index=239&type=chunk) - Effective January 1, 2024, Huntington adopted ASU 2023-02 regarding investments in tax credit structures, which did not have a material impact on its financial statements[240](index=240&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=5&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 2024 performance, noting lower net income due to margin compression amid stable credit quality [Executive Overview](index=5&type=section&id=Executive%20Overview) Q2 2024 net income fell 15% to $474 million due to net interest margin compression, while total assets grew 4% Q2 2024 vs. Q2 2023 Performance Summary | Metric | Q2 2024 | Q2 2023 | Change (%) | | :--- | :--- | :--- | :--- | | Net Income | $474M | $559M | (15)% | | Diluted EPS | $0.30 | $0.35 | (14)% | | Net Interest Income | $1,312M | $1,346M | (3)% | | Provision for Credit Losses | $100M | $92M | 9% | - Total assets reached **$196.3 billion** at June 30, 2024, a **4% increase** from year-end 2023, driven by growth in loans, investment securities, and interest-earning deposits[103](index=103&type=chunk) - The **CET1 risk-based capital ratio improved to 10.4%** from 10.2% at year-end 2023, supported by earnings and a CLN transaction that optimized risk-weighted assets[103](index=103&type=chunk) - Management observes signs of a cooling economy, including waning consumer spending and a slowing service sector, and anticipates a soft landing or a short, shallow recession[105](index=105&type=chunk) [Discussion of Results of Operations](index=9&type=section&id=Discussion%20of%20Results%20of%20Operations) Q2 2024 net interest income fell 3% from margin compression, while noninterest expense rose 6% on higher costs - Q2 2024 FTE net interest income decreased by 2% YoY, reflecting a **12 basis point decline in FTE NIM to 2.99%** and a 6% increase in average interest-bearing liabilities[81](index=81&type=chunk) - The provision for credit losses for Q2 2024 was **$100 million**, an increase of $8 million (9%) from Q2 2023, reflecting increased charge-off activity in the Commercial portfolio[87](index=87&type=chunk) - Q2 2024 noninterest income decreased 1% YoY to $491 million, mainly due to a favorable mark-to-market on swaptions in the prior year[88](index=88&type=chunk) - Q2 2024 noninterest expense rose 6% YoY to $1.1 billion, driven by a **$50 million (8%) increase in personnel costs** and a $17 million (11%) increase in outside data processing services[118](index=118&type=chunk) [Risk Management and Capital](index=18&type=section&id=Risk%20Management%20and%20Capital) The company maintains stable credit quality, strong liquidity, and a CET1 capital ratio of 10.4% - The company manages risk across seven pillars with a Board-defined risk appetite of **aggregate moderate-to-low, through-the-cycle**[120](index=120&type=chunk) - The Allowance for Credit Losses (ACL) was **$2.4 billion, or 1.95% of total loans and leases**, at June 30, 2024, broadly consistent with year-end 2023[129](index=129&type=chunk) - The balance sheet is asset sensitive, with a **+100 basis point gradual rate ramp projected to increase Net Interest Income (NII) by 2.2%** over 12 months[134](index=134&type=chunk)[135](index=135&type=chunk) - The **CET1 risk-based capital ratio was 10.4%** at June 30, 2024, and the indicative Stress Capital Buffer (SCB) requirement will decrease to 2.5% effective October 1, 2024[183](index=183&type=chunk)[210](index=210&type=chunk) [Business Segment Discussion](index=34&type=section&id=Business%20Segment%20Discussion) Consumer & Regional Banking net income grew 10%, while Commercial Banking net income fell 15% in H1 2024 Net Income by Business Segment (Six Months Ended June 30) | Segment | 2024 (in millions) | 2023 (in millions) | Change (%) | | :--- | :--- | :--- | :--- | | Consumer & Regional Banking | $716 | $648 | 10% | | Commercial Banking | $526 | $616 | (15)% | | Treasury / Other | $(349) | $(103) | (239)% | | **Total Net Income** | **$893** | **$1,161** | **(23)%** | - Consumer & Regional Banking performance was boosted by a **9% increase in net interest income**, reflecting a 5% growth in average loans and a 10 basis point expansion in NIM[245](index=245&type=chunk) - Commercial Banking's net income decline was driven by a **3% decrease in net interest income**, a 27% increase in provision for credit losses, and an 8% rise in noninterest expense[192](index=192&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=88&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Market risk disclosures are included in the MD&A section, noting any changes from the 2023 Annual Report - Quantitative and qualitative disclosures regarding market risk for the current period are located in the Market Risk section of the MD&A in this report[36](index=36&type=chunk) [Controls and Procedures](index=88&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2024 - The CEO and CFO concluded that as of June 30, 2024, Huntington's **disclosure controls and procedures were effective** in ensuring that required information is recorded and reported in a timely manner[28](index=28&type=chunk) - There were **no material changes** in internal control over financial reporting during the quarter ended June 30, 2024[458](index=458&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=88&type=section&id=Item%201.%20Legal%20Proceedings) Information regarding legal proceedings is incorporated by reference from Note 15 of the financial statements - Information regarding legal proceedings is detailed in Note 15 of the Notes to Unaudited Consolidated Financial Statements[29](index=29&type=chunk) [Risk Factors](index=88&type=section&id=Item%201A.%20Risk%20Factors) This section refers to the risk factors detailed in the company's 2023 Annual Report on Form 10-K - Readers are advised to consider the risk factors discussed in the **2023 Annual Report on Form 10-K**, as they could materially affect the company's business and financial results[38](index=38&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=88&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase any common stock in Q2 2024, with a $1 billion repurchase authorization remaining Issuer Purchases of Equity Securities (Q2 2024) | Period | Total Number of Shares Purchased | Average Price Paid Per Share | Approx. Dollar Value of Shares that May Yet Be Purchased | | :--- | :--- | :--- | :--- | | April 2024 | — | — | $1,000,000,000 | | May 2024 | — | — | $1,000,000,000 | | June 2024 | — | — | $1,000,000,000 | [Other Information](index=89&type=section&id=Item%205.%20Other%20Information) Two senior executive officers adopted Rule 10b5-1 trading plans for the sale of company stock - On January 31, 2024, Scott D. Kleinman, President of Commercial Banking, adopted a **Rule 10b5-1 trading plan** for the sale of up to 56,684 shares of common stock[460](index=460&type=chunk) - On January 24, 2024, Rajeev Syal, Chief Human Resources Officer, adopted a **Rule 10b5-1 trading plan** covering the exercise and sale of stock options and various stock units[460](index=460&type=chunk) [Exhibits](index=90&type=section&id=Item%206.%20Exhibits) An index lists all exhibits filed with the Form 10-Q, including required CEO/CFO certifications - The Exhibit Index lists all documents filed as part of this quarterly report, including Articles of Incorporation, Bylaws, and required **CEO/CFO certifications**[41](index=41&type=chunk)

Core Viewpoint - Huntington Bancshares has shown strong performance with a 24% increase in shares over the past year, attributed to its robust deposit franchise and effective management during the regional banking crisis [1][6][30] Financial Performance - In Q2, Huntington earned $0.30 per share, exceeding consensus estimates by $0.02, with adjusted earnings of $0.33 after accounting for a one-time FDIC special assessment of $6.2 million [6][30] - The company reported a net interest income (NII) of $1.33 billion, reflecting a sequential increase of $25 million, despite a slight compression in net interest margin (NIM) to 2.99% [24][30] - Average loans increased by $2 billion year-over-year, with a 4.7% annualized growth rate in Q2, particularly in business loans [16][30] Deposit and Loan Growth - Huntington's deposits grew by 4.9% year-over-year, with a sequential increase of 1.9%, indicating strong deposit gathering capabilities [3][7] - The loan-to-deposit ratio stands at 81%, down from 84% a year ago, showcasing a strong liquidity position [12][30] Capital and Reserves - The common equity tier one (CET1) capital ratio is at 10.4%, with an adjusted CET1 of 8.6%, above the regulatory minimum but below the target range [20][30] - The company maintains a reserve/loan coverage of 1.95%, providing approximately three times coverage of its delinquencies, indicating a conservative approach to credit risk [19][30] Market Position and Strategy - Huntington is expanding its wealth management capabilities and entering new markets, such as Florida and Texas, with adjusted noninterest expenses rising by 6% to $1.1 billion [13][30] - The company is positioned for modest earnings growth in 2025, with expectations of reaching $1.50 in earnings per share as its balance sheet expands [30][31] Valuation and Future Outlook - Shares are currently trading at 11 times forward earnings, with a tangible book value of $9.90, suggesting a valuation premium due to strong credit quality [23][30] - The potential for modest multiple expansion exists, with a target price of $16.80, reflecting a favorable long-term return outlook for investors [31]

Core Points - Huntington Bancshares Incorporated is a regional bank holding company with $196 billion in assets, headquartered in Columbus, Ohio, and provides a wide range of banking and financial services [2][3]. Dividend Announcements - The Board of Directors declared a quarterly cash dividend of $0.155 per common share, unchanged from the previous quarter, payable on October 1, 2024, to shareholders of record on September 17, 2024 [3]. - The company declared cash dividends on six series of preferred stock, all payable on October 15, 2024, to shareholders of record on October 1, 2024 [1][4]. Preferred Stock Dividends - The cash dividends for the preferred stocks are as follows: - Floating Rate Series B: $20.6574507 per share [4] - 5.70% Series E: $2,157.65 per share [4] - 5.625% Series F: $1,406.25 per share [4] - 4.450% Series G: $1,112.50 per share [4] - 4.5% Series H: $11.25 per share [4] - 6.875% Series J: $17.19 per share [4]

Core Viewpoint - Huntington Bancshares Incorporated reported a decline in net income and revenues, primarily due to falling net interest income and rising non-interest expenses, despite improvements in average loans and deposits [11][12][17]. Financial Performance - Net interest income (NII) on a fully taxable-equivalent basis was $1.33 billion, down 2% year over year, attributed to a decline in net interest margin (NIM), which contracted 12 basis points to 2.99% [2]. - Total revenues decreased by 2% year over year to $1.82 billion, slightly surpassing the consensus estimate of $1.81 billion [12]. - Non-interest income fell by 1% year over year to $491 million, mainly due to lower other non-interest income and a decline in gains from loan sales [13]. Expense Analysis - Non-interest expenses rose by 6% year over year to $1.12 billion, driven by higher personnel costs and increased spending on outside data processing and other services [3]. - The efficiency ratio increased to 60.8%, up from 55.9% in the prior year, indicating reduced profitability [14]. Credit Quality - Net charge-offs were $90 million, or an annualized 0.29% of average total loans and leases, up from $49 million or 0.16% in the prior year [5]. - Total non-performing assets increased to $780 million as of June 30, 2024, compared to $557 million in the prior year [15]. - The company recorded a provision for credit losses of $100 million, up from $92 million in the year-ago quarter [15]. Capital Ratios - The common equity tier 1 risk-based capital ratio was 10.4%, compared to 9.8% in the prior year, while the regulatory Tier 1 risk-based capital ratio rose to 12.1% from 11.6% [16]. Market Position - Huntington's inorganic expansion strategies are expected to support revenue growth in the near term, although elevated non-interest expenses may pressure profitability [17].

Financial Data and Key Metrics Changes - The company reported earnings per common share of $0.30 for Q2 2024, with a notable item of $6 million related to the FDIC Deposit Insurance Fund Special Assessment, which did not impact EPS [11] - Average loan balances increased by $2 billion year-over-year, with annualized loan growth of 4.7% for the quarter [9][39] - Average deposit balances grew by $8 billion or 5.5% over the past year, with a net interest margin of 2.99% for the second quarter, reflecting a decrease of 2 basis points from Q1 [9][17] Business Line Data and Key Metrics Changes - Total commercial loans increased by $689 million, with commercial growth excluding commercial real estate totaling $1.1 billion for the quarter [13] - Consumer loans saw average balances grow by $757 million or 1.4% for the quarter, with notable increases in auto loans and residential mortgages [14] - Fee revenues increased, driven by capital markets, payments, and wealth management, with payments revenue up $8 million or 5% year-over-year [20][46] Market Data and Key Metrics Changes - The company achieved strong credit performance with net charge-offs of 29 basis points, remaining within the lower half of the through-the-cycle target range of 25 to 45 basis points [23] - The criticized asset ratio declined by 7% from the prior quarter, indicating broad-based improvements across commercial portfolios [50] - The allowance for credit losses decreased by 2 basis points to 1.95%, reflecting a modestly improved economic outlook [12][23] Company Strategy and Development Direction - The company is focused on executing organic growth strategies and leveraging its strong liquidity and capital base to drive growth in new geographies and businesses [7] - The capital management strategy aims to drive capital ratios higher while funding high-return loan growth, with an adjusted CET1 target range of 9% to 10% [22][130] - The company is actively managing its asset sensitivity in anticipation of potential rate cuts, with plans to reduce asset sensitivity by approximately one-third by mid-next year [19][83] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the broader economy holding up and highlighted growth opportunities from new initiatives and geographies despite a muted customer loan demand environment [37] - The outlook for full-year loan growth remains unchanged, with expectations for continued acceleration in loan growth and sustained deposit growth [24][125] - Management noted that credit quality is stable and performing well, with a focus on maintaining a moderate to low-risk appetite [36][136] Other Important Information - The company reported a tangible book value per share increase of nearly 8% year-over-year [12] - Non-interest income increased by $24 million to $491 million for the second quarter, reflecting a recovery from the seasonal first quarter low [47] - Core expenses are expected to grow at a low single-digit rate year-over-year by the end of the year, with a forecast of 4.5% core expense growth for the full year [21][128] Q&A Session Summary Question: How is the company managing downside deposit beta in anticipation of rate cuts? - Management indicated that they are implementing a down beta playbook, reducing acquisition rates and shifting the mix from time deposits to money market accounts [26][76] Question: What is the outlook for loan growth and competitive dynamics? - Management noted that loan growth is accelerating, with strong pipelines and a focus on new growth initiatives, despite a competitive environment [39][67] Question: Can the company sustain fee income growth at the upper end of the 5% to 7% range? - Management expressed confidence in sustaining fee income growth, driven by strong performance in capital markets, payments, and wealth management [142]