HBAN Stock Rises on North & South Carolina Branch Expansion

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].