Financial Performance - For Q2 2024, net income was $474 million, or $0.30 per diluted common share, down from $559 million, or $0.35 per diluted common share in Q2 2023, representing a 15% decrease in net income [21]. - Net income attributable to Huntington for the first six months of 2024 was $893 million, a decrease of $268 million, or 23%, compared to $1,161 million in the same period of 2023 [167]. - Net income for the six months ended June 30, 2024, was $904 million, a decrease of 22.8% compared to $1,171 million for the same period in 2023 [201]. - Comprehensive income attributable to Huntington for the three months ended June 30, 2024, was $442 million, compared to $308 million for the same period in 2023, representing an increase of 43.5% [198]. Income and Expenses - Noninterest income was $491 million, a decrease of $4 million, or 1%, primarily due to a prior year favorable mark-to-market adjustment [24]. - Total noninterest expense for Q2 2024 was $1.1 billion, an increase of $67 million, or 6%, from Q2 2023 [55]. - The provision for credit losses increased to $100 million for the three months ended June 30, 2024, compared to $92 million for the same period in 2023, indicating a rise of 8.7% [197]. - The provision for credit losses for the first six months of 2024 was $207 million, an increase of $30 million, or 17%, compared to the prior year, reflecting increased charge-off activity [49]. Assets and Liabilities - Total assets as of June 30, 2024, were $196.3 billion, an increase of $6.9 billion, or 4%, compared to December 31, 2023 [25]. - Total liabilities increased to $176.7 billion, up $6.8 billion, or 4%, primarily driven by a $4.1 billion increase in long-term debt [25]. - Average assets for Q2 2024 were $194.6 billion, an increase of $3.8 billion, or 2%, from Q2 2023, driven by a $2.0 billion, or 2%, increase in average loans and leases [38]. - Total loans and leases as of June 30, 2024, amounted to $124.4 billion, a $2.4 billion, or 2%, increase from December 31, 2023 [66]. Capital and Equity - The CET1 risk-based capital ratio improved to 10.4% as of June 30, 2024, from 10.2% at December 31, 2023, due to current period earnings [26]. - Shareholders' equity totaled $19.5 billion at June 30, 2024, an increase of $162 million compared to December 31, 2023 [156]. - The total Allowance for Loan and Lease Losses (ALLL) was $2.304 billion as of June 30, 2024, compared to $2.255 billion at the end of 2023 [86]. Credit Quality - The provision for credit losses increased by $8 million, or 9%, to $100 million in Q2 2024, with the allowance for credit losses rising to $2.4 billion, or 1.95% of total loans and leases [23]. - Nonaccrual loans and leases (NALs) increased to $733 million, representing 0.59% of total loans and leases, compared to 0.55% at December 31, 2023 [77]. - Net charge-offs (NCOs) for Q2 2024 were $90 million, or 0.29% of average total loans and leases, an increase from $49 million, or 0.16%, in the same quarter last year [74]. Deposits and Funding - Total deposits increased to $154.4 billion at June 30, 2024, compared to $151.2 billion at December 31, 2023 [124]. - Average interest-bearing deposits rose by $13.0 billion, or 12%, while noninterest-bearing deposits decreased by $4.9 billion, or 14% [39]. - Core deposits totaled $147.5 billion, representing 96% of total deposits, an increase of $2.1 billion or 1% from $145.5 billion at December 31, 2023 [122]. Economic Environment and Strategy - The company aims to enhance its digital leadership and customer experience while maintaining a moderate-to-low risk appetite [27]. - The company continues to assess macroeconomic uncertainties, including risks in the commercial real estate environment and inflation levels [81]. - The economic environment remains highly uncertain, impacting the ability to predict credit losses accurately [192]. Investment and Securities - Total investment securities increased by $1.5 billion to $42.6 billion at June 30, 2024, driven by higher investments in U.S. Treasury securities [130]. - As of June 30, 2024, total available-for-sale securities amounted to $31,001 million, with gross unrealized losses of $3,639 million [209]. - The fair value of held-to-maturity securities as of June 30, 2024, was $12,730 million, with gross unrealized losses of $2,307 million [209].
HUNTINGTON BANCS(HBANL) - 2024 Q2 - Quarterly Report