Financial Performance - For Q3 2024, net income was $517 million, or $0.33 per diluted common share, down from $547 million, or $0.35 per diluted common share in Q3 2023, representing a decrease of 5%[21]. - Net income attributable to Huntington for the nine months ended September 30, 2024, was $1.41 billion, a decrease of $298 million, or 17%, compared to $1.71 billion for the same period in 2023[163]. - Net income for the nine months ended September 30, 2024, was $1,426 million, a decrease from $1,723 million in the same period of 2023, representing a decline of approximately 17.3%[197]. - Comprehensive income attributable to Huntington for Q3 2024 was $1,324 million, compared to a loss of $69 million in Q3 2023[194]. Income and Revenue - Total interest income for Q3 2024 increased to $2,555 million, up 10.5% from $2,313 million in Q3 2023[193]. - Net interest income for Q3 2024 was $1.4 billion, a decrease of $17 million, or 1%, compared to the same quarter last year, primarily due to a 22 basis point decrease in the net interest margin (NIM) to 2.98%[22]. - Noninterest income was $523 million, an increase of $14 million, or 3%, driven by higher capital markets and advisory fees, as well as wealth management revenue[24]. - Total noninterest income for Q3 2024 was $523 million, slightly up from $509 million in Q3 2023, reflecting a 2.8% increase[193]. Credit Losses and Provisions - The provision for credit losses increased by $7 million, or 7%, to $106 million in Q3 2024, with the allowance for credit losses (ACL) rising to $2.4 billion, or 1.93% of total loans and leases[23]. - Provision for credit losses for Q3 2024 was $106 million, compared to $99 million in Q3 2023, indicating a 7.1% increase[193]. - The total provision for credit losses for the first nine months of 2024 was $313 million, an increase of $37 million, or 13%, compared to the prior year[47]. - The Allowance for Credit Losses (ACL) at September 30, 2024, is estimated at $2.235 billion, reflecting management's assessment of lifetime credit losses from the loan and lease portfolio[186]. Assets and Liabilities - Total assets as of September 30, 2024, were $200.5 billion, an increase of $11.2 billion, or 6%, compared to December 31, 2023, primarily due to a $4.4 billion increase in loans and leases[25]. - Total liabilities increased to $179.9 billion, up $9.9 billion, or 6%, compared to December 31, 2023, mainly due to a $7.1 billion increase in total deposits[25]. - Average assets for Q3 2024 were $198.3 billion, an increase of $11.7 billion, or 6%, from Q3 2023, driven by a $4.2 billion, or 10%, increase in average total securities[37]. - Total deposits rose to $158.351 billion, compared to $151.230 billion at the end of 2023, indicating a growth in customer deposits[191]. Capital and Equity - The tangible common equity to tangible assets ratio improved to 6.4% as of September 30, 2024, compared to 6.1% at the end of 2023, reflecting an increase in tangible common equity from current earnings[26]. - Shareholders' equity increased to $20.6 billion at September 30, 2024, an increase of $1.3 billion compared to December 31, 2023, primarily driven by earnings and improvements in accumulated other comprehensive income[152]. - The consolidated CET1 risk-based capital ratio increased to 10.4% at September 30, 2024, compared to 10.2% at the end of the previous year[149]. - The total risk-weighted assets at the consolidated level were $142.5 billion at September 30, 2024, up from $138.7 billion at December 31, 2023[148]. Loans and Leases - Loans and leases totaled $126.4 billion as of September 30, 2024, representing a $4.4 billion, or 4%, increase from $122.0 billion at December 31, 2023[62]. - Average loans and leases increased by $3.7 billion, or 3%, in Q3 2024, with consumer loans growing by $2.1 billion, or 4%[37]. - The commercial loan segment accounted for 56% of the total loan and lease portfolio, with commercial and industrial loans at $53.6 billion[63]. - The residential mortgage segment grew to $24.1 billion, up from $23.7 billion, indicating a 1.6% increase[64]. Interest Rate and Risk Management - The company is primarily exposed to interest rate risk due to a wide array of financial products offered to customers[88]. - The NII at Risk analysis indicated that the balance sheet is asset sensitive, with a projected NII at Risk of 2.7% under a +200 basis point scenario as of September 30, 2024[94]. - The cumulative total deposit beta was 46% through the recent rising rate cycle from March 2022 to September 2024[91]. - The company utilizes various derivative instruments, including interest rate swaps and caps, to manage interest rate risk and minimize fluctuations in earnings[101]. Economic and Regulatory Environment - The Federal Reserve cut the federal funds rate by 50 basis points in September 2024, with the unemployment rate rising from 3.4% to 4.1%[29]. - The FDIC's new rule requires banks with over $50 billion in assets to submit full resolution plans every three years, effective October 1, 2024[31]. - The company continues to assess macroeconomic uncertainties, including risks in the commercial real estate sector and inflation levels, impacting the ACL estimates[78]. Dividends and Shareholder Returns - The quarterly common stock cash dividend declared on October 16, 2024, is $0.155 per share, with estimated cash demands of approximately $225 million per quarter[133]. - During the first nine months of 2024, the Bank paid common and preferred dividends totaling $1.8 billion and $34 million, respectively[135]. - Cash dividends declared for common shares were $0.155 per share, totaling $229 million for Q3 2024[195].
HUNTINGTON BANCS(HBANL) - 2024 Q3 - Quarterly Report