HUNTINGTON BANCSHARES DEP(HBANM) - 2025 Q1 - Quarterly Results

Quarterly Key Statistics Huntington Bancshares reported strong Q1 2025 performance, with net income up 31% year-over-year and improved profitability metrics Q1 2025 Key Financial Performance | Metric | Q1 2025 | Q4 2024 | Q1 2024 | Change vs. 4Q24 | Change vs. 1Q24 | | :--- | :--- | :--- | :--- | :--- | :--- | | Net Income Applicable to Common Shares (in millions) | $500 | $498 | $383 | 0% | 31% | | Net Income per Common Share - Diluted (in dollars) | $0.34 | $0.34 | $0.26 | 0% | 31% | | Net Interest Income (FTE) (in millions) | $1,441 | $1,409 | $1,300 | 2% | 11% | | Noninterest Income (in millions) | $494 | $559 | $467 | (12)% | 6% | | Provision for Credit Losses (in millions) | $115 | $107 | $107 | 7% | 7% | | Return on Avg. Tangible Common Equity (%) | 16.7% | 16.4% | 14.2% | - | - | | Net Interest Margin (FTE) (%) | 3.10% | 3.03% | 3.01% | - | - | Q1 2025 Key Balance Sheet & Credit Metrics | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Average Total Assets (in billions) | $205.1 | $201.8 | $190.3 | | Average Loans and Leases (in billions) | $130.9 | $128.2 | $121.9 | | Average Total Deposits (in billions) | $161.6 | $159.4 | $150.7 | | Tangible Book Value per Common Share (in dollars) | $8.80 | $8.33 | $7.77 | | NCOs as a % of avg. loans (%) | 0.26% | 0.30% | 0.30% | | Common Equity Tier 1 Ratio (est.) (%) | 10.6% | 10.5% | 10.2% | Consolidated Balance Sheets Total assets grew 3% quarter-over-quarter to $209.6 billion, driven by loan and deposit growth, strengthening shareholders' equity Balance Sheet Highlights (Q1 2025 vs Q4 2024) | Account | March 31, 2025 | December 31, 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Assets (in millions) | $209,596 | $204,230 | 3% | | Net Loans and Leases (in millions) | $130,242 | $127,798 | 2% | | Interest-earning deposits with banks (in millions) | $14,330 | $11,647 | 23% | | Total Liabilities (in millions) | $189,110 | $184,448 | 3% | | Deposits (in millions) | $165,337 | $162,448 | 2% | | Long-term debt (in millions) | $18,096 | $16,374 | 11% | | Total Huntington Shareholders' Equity (in millions) | $20,434 | $19,740 | 4% | Loans and Leases Composition Total loans and leases grew 2% to $132.5 billion in Q1 2025, primarily driven by commercial portfolio expansion Ending Loan Balances by Type (March 31, 2025) | Loan Type | Balance (in millions) | % of Total | | :--- | :--- | :--- | | Total Commercial | $75,367 | 57% | | Commercial and industrial | $58,948 | 45% | | Commercial real estate | $10,968 | 8% | | Lease financing | $5,451 | 4% | | Total Consumer | $57,138 | 43% | | Residential mortgage | $24,369 | 19% | | Automobile | $14,877 | 11% | | Home equity | $10,130 | 8% | | Total Loans and Leases | $132,505 | 100% | - Commercial and industrial loans were the primary driver of growth, increasing by $2.1 billion (4%) from Q4 2024[15] Deposits Composition Total deposits grew 2% to $165.3 billion in Q1 2025, driven by increases in interest-bearing demand and money market accounts Ending Deposit Balances by Type (March 31, 2025) | Deposit Type | Balance (in millions) | % of Total | | :--- | :--- | :--- | | Demand deposits - noninterest bearing | $30,217 | 18% | | Demand deposits - interest bearing | $44,992 | 28% | | Money market deposits | $61,608 | 37% | | Savings deposits | $15,179 | 9% | | Time deposits | $13,341 | 8% | | Total Deposits | $165,337 | 100% | - Total deposits increased by $2.9 billion (2%) quarter-over-quarter, with growth concentrated in money market and interest-bearing demand accounts[16] Consolidated Quarterly Average Balance Sheets Average total assets increased 2% QoQ to $205.1 billion in Q1 2025, driven by growth in earning assets and loans Quarterly Average Balances (Q1 2025) | Average Balance (in millions) | Q1 2025 | Change vs. 4Q24 (%) | Change vs. 1Q24 (%) | | :--- | :--- | :--- | :--- | | Total Assets | $205,087 | 2% | 8% | | Total Earning Assets | $188,299 | 2% | 8% | | Total Loans and Leases | $130,862 | 2% | 7% | | Total Deposits | $161,600 | 1% | 7% | | Total Interest-Bearing Liabilities | $150,994 | 3% | 11% | Net Interest Margin Analysis Net interest margin (FTE) expanded to 3.10% in Q1 2025, driven by a wider net interest rate spread and lower funding costs Interest Income & Expense FTE net interest income increased 2% sequentially to $1.44 billion in Q1 2025, driven by lower interest expense FTE Interest Income & Expense (in millions) | Category | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Total Interest Income | $2,504 | $2,524 | $2,393 | | Total Interest Expense | $1,063 | $1,115 | $1,093 | | Net Interest Income (FTE) | $1,441 | $1,409 | $1,300 | Yields and Net Interest Margin Net interest margin expanded to 3.10% in Q1 2025, driven by a wider net interest rate spread and lower deposit costs Key Rates and Margins (FTE) | Metric | Q1 2025 (%) | Q4 2024 (%) | Q1 2024 (%) | | :--- | :--- | :--- | :--- | | Yield on Total Earning Assets | 5.39% | 5.42% | 5.54% | | Cost of Total Interest-Bearing Liabilities | 2.86% | 3.01% | 3.23% | | Net Interest Rate Spread | 2.53% | 2.41% | 2.31% | | Net Interest Margin | 3.10% | 3.03% | 3.01% | Selected Quarterly Income Statement Data Huntington reported Q1 2025 net income of $500 million, with total FTE revenue of $1.94 billion, driven by stable net interest income Quarterly Income Statement Highlights (in millions) | Line Item | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Net Interest Income | $1,426 | $1,395 | $1,287 | | Provision for Credit Losses | $115 | $107 | $107 | | Total Noninterest Income | $494 | $559 | $467 | | Total Noninterest Expense | $1,152 | $1,178 | $1,137 | | Net Income Applicable to Common Shares | $500 | $498 | $383 | - Key noninterest income streams in Q1 2025 included $155 million from payments and cash management, $101 million from wealth and asset management, and $67 million from capital markets fees[23] - Personnel costs, the largest expense component, decreased to $671 million from $715 million in the prior quarter[23] Mortgage Banking Income Mortgage banking income remained stable at $31 million in Q1 2025, as improved servicing income offset lower origination volume Mortgage Banking Income Components (in millions) | Component | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Net Origination & Secondary Marketing | $18 | $25 | $16 | | Net Mortgage Servicing Income | $13 | $6 | $15 | | Total Mortgage Banking Income | $31 | $31 | $31 | - Mortgage origination volume decreased 24% quarter-over-quarter to $1.6 billion, but was up 25% year-over-year[24] - Net MSR risk management showed significant volatility, with a $0 million net result in Q1 2025 compared to a loss of $4 million in Q4 2024 and a gain of $1 million in Q1 2024. This was composed of a $15 million MSR valuation loss offset by a $15 million hedging gain[24] Credit Quality Analysis Credit quality remained stable in Q1 2025, with the net charge-off ratio improving to 0.26% and nonperforming assets declining Credit Reserves Analysis Allowance for Credit Losses (ACL) increased slightly to $2.48 billion in Q1 2025, providing strong coverage of nonaccrual loans Allowance for Credit Losses (ACL) Roll-Forward (in millions) | Item | Q1 2025 | | :--- | :--- | | Beginning ACL | $2,446 | | Net Charge-Offs | ($86) | | Provision for Credit Losses | $118 (1) | | Ending ACL | $2,478 | Key Reserve Ratios | Ratio | Q1 2025 (%) | Q4 2024 (%) | Q1 2024 (%) | | :--- | :--- | :--- | :--- | | ALLL as % of Total Loans | 1.71% | 1.73% | 1.86% | | ACL as % of Total Loans | 1.87% | 1.88% | 1.97% | | ALLL as % of NALs | 302% | 286% | 318% | Net Charge-Off Analysis Total net charge-offs decreased to $86 million in Q1 2025, improving the annualized NCO ratio to 0.26% Net Charge-Offs (NCOs) | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Total NCOs (in millions) | $86 | $97 | $92 | | NCOs as % of Avg. Loans (%) | 0.26% | 0.30% | 0.30% | | Commercial NCO Ratio (%) | 0.24% | 0.29% | 0.32% | | Consumer NCO Ratio (%) | 0.29% | 0.32% | 0.28% | Nonperforming Assets (NPAs) and Nonaccrual Loans (NALs) Nonperforming assets and nonaccrual loans declined in Q1 2025, with the NAL ratio improving to 0.56% Key Asset Quality Ratios | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Total NPAs (in millions) | $804 | $822 | $738 | | Total NALs (in millions) | $748 | $783 | $716 | | NALs as % of Total Loans (%) | 0.56% | 0.60% | 0.58% | | NPA Ratio (%) | 0.61% | 0.63% | 0.60% | Accruing Past Due Loans Accruing loans past due 90+ days decreased to $220 million in Q1 2025, indicating improved early-stage delinquencies Accruing Loans Past Due 90+ Days (in millions) | Category | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Total (excl. guaranteed) | $72 | $88 | $61 | | Total (incl. guaranteed) | $220 | $239 | $183 | | Ratio (excl. guaranteed) (%) | 0.05% | 0.07% | 0.05% | Capital Analysis Huntington maintained a robust capital position in Q1 2025, with the estimated CET1 ratio increasing to 10.6% Regulatory Capital (Basel III) Huntington's estimated CET1 capital ratio increased to 10.6% in Q1 2025, maintaining strong regulatory capital ratios Regulatory Capital Ratios (Basel III) | Ratio | Q1 2025 (est.) (%) | Q4 2024 (%) | Q1 2024 (%) | | :--- | :--- | :--- | :--- | | Common Equity Tier 1 (CET1) | 10.6% | 10.5% | 10.2% | | Tier 1 Leverage | 8.5% | 8.6% | 8.9% | | Tier 1 Risk-Based Capital | 11.9% | 11.9% | 12.0% | | Total Risk-Based Capital | 14.3% | 14.3% | 14.1% | - As of March 31, 2025, the impact of the CECL deferral on regulatory capital was fully phased in, meaning there are no further transitional adjustments[34] Common Stock and Non-Regulatory Capital Data Huntington declared a $0.155 cash dividend per share, with tangible book value per share increasing to $8.80 Per Common Share and Non-Regulatory Capital Data | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Cash Dividends Declared (in dollars) | $0.155 | $0.155 | $0.155 | | Tangible Book Value per Share (in dollars) | $8.80 | $8.33 | $7.77 | | Tangible Common Equity / Tangible Asset Ratio (%) | 6.3% | 6.1% | 6.0% | - The number of domestic full-service branches decreased slightly to 968 from 978 in the previous quarter[37]