HUNTINGTON BANCSHARES DEP(HBANM) - 2024 Q4 - Annual Results

Key Financial Statistics This section provides an overview of the company's key financial performance metrics on both a quarterly and annual basis Quarterly Key Statistics Q4 2024 saw significant profitability growth, with net income up 132% year-over-year, driven by higher noninterest income and improved efficiency Q4 2024 Key Performance Metrics | Metric | Q4 2024 | Q3 2024 | Q4 2023 | YoY Change | | :--- | :--- | :--- | :--- | :--- | | Net Income Applicable to Common Shares | $498M | $481M | $215M | +132% | | Net Income per Common Share - Diluted | $0.34 | $0.33 | $0.15 | +127% | | Net Interest Margin (FTE) | 3.03% | 2.98% | 3.07% | -4 bps | | Return on Average Assets | 1.05% | 1.04% | 0.51% | +54 bps | | Return on Avg. Tangible Common Equity | 16.4% | 16.2% | 8.4% | +800 bps | | Efficiency Ratio (FTE) | 58.6% | 59.4% | 77.0% | -18.4 p.p. | | NCOs as a % of Avg. Loans | 0.30% | 0.30% | 0.31% | -1 bp | - The company maintained its quarterly cash dividend at $0.155 per common share, consistent with the previous quarters[10] - Average total assets grew by 7% year-over-year to $201.8 billion, while average total deposits increased by 7% to $159.4 billion[10] Annual Key Statistics Full year 2024 net income slightly decreased, while average assets and deposits grew, and noninterest income increased despite NIM compression Full Year 2024 Key Performance Metrics | Metric | 2024 | 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Net Income Applicable to Common Shares | $1,801M | $1,817M | -1% | | Net Income per Common Share - Diluted | $1.22 | $1.24 | -2% | | Net Interest Income (FTE) | $5,398M | $5,481M | -2% | | Noninterest Income | $2,040M | $1,921M | +6% | | Net Interest Margin (FTE) | 3.00% | 3.19% | -19 bps | | Return on Average Assets | 0.99% | 1.04% | -5 bps | | NCOs as a % of Avg. Loans | 0.30% | 0.23% | +7 bps | - Average loans and leases for the year grew by 3% to $124.5 billion, and average total deposits grew by 5% to $155.1 billion compared to 2023[11] Consolidated Balance Sheets This section details the company's financial position, including asset, liability, and equity composition, both at period-end and on an average basis Consolidated Balance Sheets (End of Period) Year-end 2024 total assets grew 8% to $204.2 billion, with strong growth in loans and deposits, and a significant rise in long-term debt Balance Sheet Highlights (Year-End) | (in millions) | Dec 31, 2024 | Dec 31, 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Total Assets | $204,230 | $189,368 | +8% | | Net Loans and Leases | $127,798 | $119,727 | +7% | | Total Deposits | $162,448 | $151,230 | +7% | | Long-term Debt | $16,374 | $12,394 | +32% | | Total Huntington Shareholders' Equity | $19,740 | $19,353 | +2% | Loans and Leases Composition Total loans and leases grew to $130.0 billion in 2024, driven by commercial and industrial and automobile loan growth Loan Portfolio Composition (End of Period) | Loan Type (in millions) | Dec 31, 2024 | Dec 31, 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Commercial and Industrial | $56,809 | $50,657 | +12.1% | | Commercial Real Estate | $11,078 | $12,422 | -10.8% | | Residential Mortgage | $24,242 | $23,720 | +2.2% | | Automobile | $14,564 | $12,482 | +16.7% | | Total Loans and Leases | $130,042 | $121,982 | +6.6% | Deposits Composition Total deposits grew 7% to $162.4 billion, with a shift towards interest-bearing accounts, particularly money market deposits - In Q4 2024, Huntington updated its deposit category presentation to better align with its strategic business management. Prior periods were adjusted for comparability[4] Deposit Portfolio Composition (End of Period) | Deposit Type (in millions) | Dec 31, 2024 | % of Total | Dec 31, 2023 | % of Total | | :--- | :--- | :--- | :--- | :--- | | Noninterest-bearing | $29,345 | 18% | $30,967 | 20% | | Interest-bearing Demand | $43,378 | 27% | $39,190 | 26% | | Money Market | $60,730 | 37% | $50,185 | 34% | | Savings | $14,723 | 9% | $15,763 | 10% | | Time Deposits | $14,272 | 9% | $15,125 | 10% | | Total Deposits | $162,448 | 100% | $151,230 | 100% | Consolidated Average Balance Sheets Average balance sheets show consistent growth in earning assets, loans, and deposits, with a shift towards interest-bearing liabilities Quarterly Average Balance Sheets Q4 2024 average earning assets grew 8% to $185.2 billion, with average deposits up 7% driven by money market growth Q4 2024 Average Balances | (in millions) | Q4 2024 | Q4 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Average Earning Assets | $185,222 | $171,360 | +8% | | Average Loans and Leases | $128,158 | $121,229 | +6% | | Average Total Deposits | $159,405 | $149,654 | +7% | | Average Shareholders' Equity | $20,013 | $18,713 | +7% | Annual Average Balance Sheets Full year 2024 average earning assets and total deposits both grew 5%, with a notable shift to interest-bearing deposits Full Year 2024 Average Balances | (in millions) | 2024 | 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Average Earning Assets | $179,756 | $171,586 | +5% | | Average Loans and Leases | $124,503 | $120,947 | +3% | | Average Total Deposits | $155,066 | $147,388 | +5% | | Average Shareholders' Equity | $19,651 | $18,634 | +5% | Net Interest Margin Analysis This section analyzes the company's net interest margin, examining trends in earning asset yields and funding costs on a quarterly and annual basis Quarterly Net Interest Margin Q4 2024 FTE net interest margin improved sequentially to 3.03%, driven by a decrease in the cost of deposits Quarterly Net Interest Margin (FTE) | Metric | Q4 2024 | Q3 2024 | Q4 2023 | | :--- | :--- | :--- | :--- | | Yield on Earning Assets | 5.42% | 5.62% | 5.47% | | Cost of Total Interest-Bearing Liabilities | 3.01% | 3.32% | 3.09% | | Net Interest Margin | 3.03% | 2.98% | 3.07% | | Total Cost of Deposits | 2.16% | 2.40% | 2.14% | - Net interest income for Q4 2024 was $1.41 billion, a 3% increase from the prior quarter and a 6% increase from the prior year's quarter[19] Annual Net Interest Margin Full year 2024 FTE net interest margin compressed to 3.00% due to higher cost of interest-bearing liabilities Annual Net Interest Margin (FTE) | Metric | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Yield on Earning Assets | 5.55% | 5.22% | 3.67% | | Cost of Total Interest-Bearing Liabilities | 3.22% | 2.68% | 0.61% | | Net Interest Margin | 3.00% | 3.19% | 3.25% | | Total Cost of Deposits | 2.30% | 1.69% | 0.25% | - Annual net interest income on an FTE basis was $5.40 billion in 2024, a slight decrease from $5.48 billion in 2023[40] Income Statement Analysis This section provides a detailed analysis of the company's income statement, highlighting key revenue and expense trends on both a quarterly and annual basis Selected Quarterly Income Statement Data Q4 2024 net income attributable to Huntington was $530 million, driven by increased noninterest income and lower year-over-year expenses Q4 2024 Income Statement Highlights | (in millions) | Q4 2024 | Q3 2024 | Q4 2023 | | :--- | :--- | :--- | :--- | | Net Interest Income (GAAP) | $1,395 | $1,351 | $1,316 | | Provision for Credit Losses | $107 | $106 | $126 | | Total Noninterest Income | $559 | $523 | $405 | | Total Noninterest Expense | $1,178 | $1,130 | $1,348 | | Net Income Attributable to Huntington | $530 | $517 | $243 | Quarterly Mortgage Banking Noninterest Income Q4 2024 mortgage banking income was $31 million, influenced by MSR risk management losses despite increased origination volume Quarterly Mortgage Banking Income Components | (in millions) | Q4 2024 | Q3 2024 | Q4 2023 | | :--- | :--- | :--- | :--- | | Net Origination & Secondary Marketing | $25 | $25 | $12 | | Net Mortgage Servicing Income | $6 | $13 | $11 | | Mortgage Banking Income | $31 | $38 | $23 | | Mortgage Origination Volume | $2,093 | $1,883 | $1,666 | Selected Annual Income Statement Data Full year 2024 net income was $1.94 billion, stable year-over-year, with noninterest income growth offsetting a decline in net interest income Annual Income Statement Highlights | (in millions) | 2024 | 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Net Interest Income (GAAP) | $5,345 | $5,439 | -2% | | Provision for Credit Losses | $420 | $402 | +4% | | Total Noninterest Income | $2,040 | $1,921 | +6% | | Total Noninterest Expense | $4,562 | $4,574 | 0% | | Net Income Attributable to Huntington | $1,940 | $1,951 | -1% | Annual Mortgage Banking Noninterest Income Full year 2024 mortgage banking income increased to $130 million, driven by higher origination and secondary marketing income Annual Mortgage Banking Income Components | (in millions) | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Net Origination & Secondary Marketing | $83 | $69 | $105 | | Net Mortgage Servicing Income | $46 | $43 | $37 | | Mortgage Banking Income | $130 | $109 | $144 | | Mortgage Origination Volume | $7,416 | $7,602 | $10,457 | Credit Quality Analysis This section provides an in-depth analysis of the company's credit quality, including reserves, charge-offs, and nonperforming assets Quarterly Credit Analysis Q4 2024 credit quality remained stable, with ACL slightly decreasing and net charge-off ratio holding steady at 0.30% Quarterly Credit Reserves Analysis Q4 2024 total allowance for credit losses was $2.45 billion, or 1.88% of total loans, with a consistent provision Quarterly Allowance for Credit Losses (ACL) | (in millions) | Q4 2024 | Q3 2024 | Q4 2023 | | :--- | :--- | :--- | :--- | | Beginning ACL | $2,436 | $2,423 | $2,400 | | Provision for Credit Losses | $107 | $106 | $126 | | Net Charge-offs | ($97) | ($93) | ($94) | | Ending ACL | $2,446 | $2,436 | $2,400 | | ACL as % of Total Loans | 1.88% | 1.93% | 1.97% | Quarterly Net Charge-Off Analysis Q4 2024 net charge-offs were $97 million, with an annualized NCO ratio of 0.30% of average loans, remaining stable Quarterly Net Charge-Offs | (in millions) | Q4 2024 | Q3 2024 | Q4 2023 | | :--- | :--- | :--- | :--- | | Total Commercial NCOs | $51 | $54 | $57 | | Total Consumer NCOs | $46 | $39 | $37 | | Total Net Charge-offs | $97 | $93 | $94 | | NCOs as % of Avg. Loans | 0.30% | 0.30% | 0.31% | Quarterly Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs) Q4 2024 total nonperforming assets increased to $822 million, with the NPA ratio rising to 0.63% due to commercial nonaccrual loans Quarterly Nonperforming Assets | (in millions) | Q4 2024 | Q3 2024 | Q4 2023 | | :--- | :--- | :--- | :--- | | Total Nonaccrual Loans (NALs) | $783 | $738 | $667 | | Total Nonperforming Assets (NPAs) | $822 | $784 | $711 | | NALs as % of Total Loans | 0.60% | 0.58% | 0.55% | | NPA Ratio | 0.63% | 0.62% | 0.58% | Quarterly Accruing Past Due Loans and Leases Q4 2024 accruing loans past due 90 days or more totaled $239 million, representing 0.18% of total loans Accruing Loans Past Due 90+ Days | (in millions) | Q4 2024 | Q3 2024 | Q4 2023 | | :--- | :--- | :--- | :--- | | Total Accruing Past Due 90+ Days | $239 | $224 | $189 | | As a % of Total Loans | 0.18% | 0.18% | 0.15% | Annual Credit Analysis Full year 2024 credit metrics normalized, with the net charge-off ratio increasing to 0.30% and nonperforming assets rising Annual Credit Reserves Analysis Year-end 2024 total allowance for credit losses was $2.45 billion, or 1.88% of total loans, with a $420 million full-year provision Annual Allowance for Credit Losses (ACL) | (in millions) | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Ending ACL | $2,446 | $2,400 | $2,271 | | Provision for Credit Losses | $420 | $402 | $289 | | ACL as % of Total Loans | 1.88% | 1.97% | 1.90% | Annual Net Charge-Off Analysis Full year 2024 total net charge-offs were $372 million, or 0.30% of average loans, indicating normalization of losses Annual Net Charge-Offs | (in millions) | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Total Commercial NCOs | $217 | $158 | $15 | | Total Consumer NCOs | $155 | $115 | $106 | | Total Net Charge-offs | $372 | $273 | $121 | | NCOs as % of Avg. Loans | 0.30% | 0.23% | 0.11% | Annual Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs) Year-end 2024 total nonperforming assets reached $822 million, with the NPA ratio increasing to 0.63% due to commercial nonaccrual loans Annual Nonperforming Assets | (in millions) | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | :--- | | Total Nonaccrual Loans (NALs) | $783 | $667 | $569 | | Total Nonperforming Assets (NPAs) | $822 | $711 | $594 | | NALs as % of Total Loans | 0.60% | 0.55% | 0.48% | | NPA Ratio | 0.63% | 0.58% | 0.50% | Capital and Shareholder Data This section reviews the company's capital adequacy, regulatory ratios, and key shareholder metrics, including dividends and book value Quarterly Capital and Other Data Huntington maintained a strong capital position in Q4 2024, with CET1 ratio improving to 10.5% and consistent dividend payments Quarterly Capital Under Current Regulatory Standards (Basel III) Q4 2024 estimated CET1 ratio improved to 10.5%, demonstrating a robust capital base well above regulatory minimums Regulatory Capital Ratios (Estimated) | Ratio | Q4 2024 | Q3 2024 | Q4 2023 | | :--- | :--- | :--- | :--- | | Common Equity Tier 1 (CET1) | 10.5% | 10.4% | 10.2% | | Tier 1 Risk-Based Capital | 11.9% | 12.1% | 12.0% | | Total Risk-Based Capital | 14.3% | 14.1% | 14.2% | | Tier 1 Leverage | 8.6% | 8.8% | 9.3% | Quarterly Common Stock Summary, Non-Regulatory Capital, and Other Data Q4 2024 cash dividend remained $0.155 per share, with tangible book value at $8.33 and domestic branches optimized to 978 Common Stock and Non-Regulatory Capital Data | Metric | Q4 2024 | Q3 2024 | Q4 2023 | | :--- | :--- | :--- | :--- | | Cash Dividends per Share | $0.155 | $0.155 | $0.155 | | Tangible Book Value per Share | $8.33 | $8.65 | $7.79 | | Tangible Common Equity / Tangible Assets | 6.1% | 6.4% | 6.1% | | Number of Domestic Branches | 978 | 975 | 999 |