Huntington Q1 Earnings & Revenues Beat on Higher NII & Fee Income

Core Viewpoint - Huntington Bancshares Incorporated (HBAN) reported strong first-quarter 2025 results, with adjusted earnings per share (EPS) of 34 cents, exceeding the Zacks Consensus Estimate of 31 cents and up from 26 cents in the prior-year quarter [1] Financial Performance - The company achieved a net income attributable to common shareholders of $527 million, an increase from $419 million in the prior-year quarter [2] - Total quarterly revenues increased by 9.5% year over year to $1.94 billion, surpassing the Zacks Consensus Estimate of $1.9 billion [3] - Net interest income (NII) on a fully taxable-equivalent (FTE) basis was $1.44 billion, up 10.8% from the prior-year quarter, driven by a rise in average earning assets and net interest margin (NIM), which increased by 9 basis points to 3.10% [4] - Non-interest income rose 5.8% year over year to $494 million, with most components contributing positively, except for leasing revenue and other non-interest income [5] - Non-interest expenses increased by 1.3% year over year to $1.15 billion, primarily due to higher personnel costs and other operational expenses [5] - The efficiency ratio improved to 58.9%, down from 63.7% in the year-ago quarter, indicating enhanced profitability [6] Loans and Deposits - As of March 31, 2025, average loans and leases increased nearly 2.1% sequentially to $130.86 billion, while average total deposits rose 1.4% to $161.6 billion [7] Credit Quality - Net charge-offs were $86 million, down from $92 million in the prior-year quarter, with the allowance for credit losses increasing by 2.6% to $2.48 billion [8] - Total non-performing assets rose to $804 million, an increase of 8.9% from the prior-year quarter [8] - The provision for credit losses was recorded at $115 million, up 7.5% from the year-ago quarter [9] Capital Ratios - The common equity tier 1 risk-based capital ratio improved to 10.6% from 10.2% in the prior-year period [10] - The regulatory Tier 1 risk-based capital ratio decreased to 11.9% from 12% in the comparable period in 2024 [10] - The tangible common equity to tangible assets ratio increased to 6.3% from 6.0% in the year-ago quarter [10] Strategic Outlook - The company's inorganic expansion efforts are expected to bolster revenue growth in the near term, while enhancing commercial banking capabilities and expanding in key growth markets will support long-term financial performance [12]